Student Loan Interest Tax Deduction

Taxpayers who have secured loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependents may generally deduct the interest they pay on these student loans.

The maximum student loan interest deduction each taxpayer is permitted to take for the tax year is $2500. Interest deductions apply to Federal, private, and Vanderbilt institutional loans. The amount of your student loan interest deduction is phased out if your modified adjusted gross income (MAGI) is between $50,000 and $65,000 ($100,000 and $130,000 if you file a joint return). You cannot take a student loan interest deduction if your MAGI is $65,000 or more ($130,000 or more if you file a joint return).

If you wish to learn whether you are eligible for the tax benefit, or if you desire additional information on the deduction, please consult your tax advisor or the Internal Revenue Service.