Student Loan Interest Deduction Calculator
Estimate your federal student loan interest deduction for tax year 2025 or 2026 using the official IRS MAGI phase-out limits. Find out how much taxable income you can shield and what that is worth in tax savings.
Calculate Your Deduction
Uses IRS Publication 970 limits. The deduction is above the line (reduces AGI) and capped at $2,500.
Estimates only. Not tax advice. Confirm with IRS Pub 970, your Form 1098-E, and a tax professional.
How the Student Loan Interest Deduction Works
The student loan interest deduction lets you subtract up to $2,500 of the interest you paid on a qualified student loan from your gross income, lowering your taxable income. It is an above-the-line adjustment, which means you can claim it even if you take the standard deduction and do not itemize. The amount you can deduct is the smaller of (a) the interest you actually paid and (b) $2,500 — and it is then reduced or eliminated by the MAGI phase-out described below.
2025 vs 2026 income limits (MAGI phase-out)
Phase-out begins at the lower number and the deduction reaches zero at the higher number. Married Filing Separately is disqualified at every income level.
| Filing Status | Full Deduction (2025) | Phases Out (2025) | Full Deduction (2026) | Phases Out (2026) |
|---|---|---|---|---|
| Single | ≤ $85,000 | $85,000 – $100,000 | ≤ $85,000 | $85,000 – $100,000 |
| Head of Household | ≤ $85,000 | $85,000 – $100,000 | ≤ $85,000 | $85,000 – $100,000 |
| Married Filing Jointly | ≤ $170,000 | $170,000 – $200,000 | ≤ $175,000 | $175,000 – $205,000 |
| Married Filing Separately | Not eligible at any income | |||
The IRS phase-out formula
For a partial phase-out, the IRS reduces your deduction by a fraction of your interest:
Deduction = Interest Paid (≤ $2,500) × (1 − (MAGI − Lower Limit) ÷ (Upper Limit − Lower Limit))
Example (IRS): A single filer with MAGI of $91,000 who paid $1,100 in interest in 2025. Fraction = ($91,000 − $85,000) ÷ $15,000 = 0.40. Deduction = $1,100 × (1 − 0.40) = $660.
Who qualifies
- You (or your spouse, if joint) paid interest on a qualified student loan taken out solely for eligible education expenses.
- The loan must be in your name; you cannot be claimed as a dependent on someone else's return.
- Federal Direct, FFEL, and Perkins loans qualify, as do most private student loans. Loans from a relative or employer do not.
- Refinanced loans still qualify as long as the funds were used for education (interest on any non-education balance rolled in is not deductible).
How to claim it
Report the deduction on Schedule 1 (Form 1040), line "Student loan interest deduction." Your servicer issues Form 1098-E each January if you paid $600 or more in interest; the box 1 amount is your starting point. You do not need to itemize.
Frequently Asked Questions
No. A deduction lowers your taxable income; a credit lowers your tax bill dollar-for-dollar. The student loan interest break is a deduction, so its cash value equals the deduction amount times your marginal rate.
The deduction is capped at $2,500 per return, so any interest above that does not provide additional federal deduction. (Some states offer their own separate student-loan-interest deduction — see our state guides.)
The new private loan still qualifies if the original debt was for education. You keep the federal deduction on the refinanced loan's interest; what you give up is federal loan forgiveness and income-driven repayment, which is a separate trade-off — see our Refinance Analyzer.
Generally the person legally obligated to pay claims it. If the loan is in your name and you are not a dependent, you claim it. If your parents hold the loan, they may claim it on their return instead. A child cannot claim a parent's payment.
Sources: IRS Publication 970 (2025), IRS Topic 456, Form 1098-E. Educational use only; verify with a tax professional.