Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Student Loan Repayment Student Loan Interest Tax Deduction Calculator Updated Jun 11, 2024 4-min read Written by Jeff Gitlen, CEPF® Written by Jeff Gitlen, CEPF® Expertise: Student loans, personal loans, home loans, insurance, credit cards Jeff Gitlen, CEPF®, is the director of growth at LendEDU. He graduated from the Alfred Lerner College of Business and Economics at the University of Delaware. Learn more about Jeff Gitlen, CEPF® Calculate student loan interest deduction Editor’s note: We’re working to update this calculator to reflect the current tax year and will update this article when it is complete. Personal information Will someone claim you as a dependent on their 2018 tax return? No Yes What will your 2018 Modified Adjusted Gross Income (MAGI) be? How are you filing your taxes for 2018 Married Joint Married Seperate Widower Head of Household Student Loan Information Were payments made on student loans disbursed in your name in 2018? Yes No How much interest will you pay on your student loans in 2018? What will your spouse's 2018 MAGI be? Calculator Results Total Deduction $1,000 deduction Total Refund $250 refund increase Sorry, but you are ineligible for student loan interest deduction. Good news! You’re eligible for the student loan interest deduction on your tax return. You’ll be able to subtract $1,000 from your total income when you file your taxes. In total, you’ll see a $250 increase in your tax refund this year! See all our Student Loan Calculators here. Millions of people need student loans to earn a college degree. Without access to affordable financing, many would be unable to pursue their goals of getting the job they want based on their education. And for some, having a student loan balance means you can decrease your effective tax rate. Student loan borrowers, federal and private, who meet certain requirements may qualify for a student loan interest tax deduction each year. With this tax deduction, you may be able to get relief while repaying student loan balances. This is based on the amount of interest you pay each year, your income, and your tax filing status. Table of Contents Skip to Section How to use this calculatorThe impact of student loans on federal taxesDo you qualify for the student loan interest deduction?Reduce the cost of student debt How to use this student loan interest tax deduction calculator The student loan interest tax deduction calculator above can show you your potential savings. It’s easy to use. Begin by selecting whether someone can claim you as a dependent on their tax return for the current year.Input your modified adjusted gross income and the way you plan to file your taxes for the year (i.e., single, married, joint, or married but filing separately). Add your student loan information. This includes whether you made payments on student loans during the tax year and how much interest you paid throughout the year.If you’re married, input your spouse’s modified adjusted gross income for the year. Based on these details, the calculator generates the student loan tax deduction amount available and how that affects your tax refund. If you’re unsure of any of the details to complete the calculation, look to your student loan servicer for the total interest paid and your taxes for the previous year or pay stubs from the current year to determine your modified adjusted gross income. The impact of student loans on federal taxes Being eligible for the student loan interest deduction reduces your total tax obligation based on how much you can deduct from your income. While this benefits some taxpayers with student loan debt, other tax strategies, including taking the standard deduction, may work more in your favor. Check with a tax professional to determine what may work best for your financial circumstances. The availability of the student loan interest deduction depends on several factors unique to you, your household status, your income, and your filing selection. Factor in these nuances to understand all your options for lowering your tax liabilities each year. Read More Student Loans & Taxes Guide Do you qualify for the student loan interest deduction? Not everyone will qualify for the student loan interest deduction tax credit. The IRS has laid out specific rules based on the following factors: Your modified adjusted gross income can’t exceed $90,000 as a single filer or $185,000 as a married filer. The total amount of the deduction begins to phase out starting at a modified adjusted gross income of $75,000 for single individuals, and $155,000 for married couples.No one else can claim you as a dependent on their tax return for the yearYou must have student loans that are in repaymentYou must have made interest payments on your student loans throughout the year The student loan interest deduction is up to $2,500 annually for qualified student loans. Reduce the cost of student debt The student loan interest deduction offers a tax break for many, but that may not be enough to counter the cost of your debt. Here are other ways to reduce the cost of your student loan debt. Refinance Refinancing may be an option for your federal or private student loans. Borrowers can take out a new loan through a private lender to pay off multiple student loans, creating one streamlined payment and potentially lowering the cost. For those who qualify, private refinanced student loans may offer a lower interest rate than their current loans. This can lower the cost of the loan as you repay it. You may also reduce your repayment plan term when refinancing a loan, which can save on total interest paid. Check out our list of the best student loan refinance companies. Student loan forgiveness Some student loan borrowers may also qualify for student loan forgiveness or cancellation after making a set number of qualifying monthly payments. Loan forgiveness wipes away the remaining balance of a loan, leaving you with no ongoing obligation to make student loan payments. If you work in public service, you may be eligible for Public Service Loan Forgiveness, which can reduce the cost of borrowing.