is student loan interest deductible as well as the standard deduction
Overview of the Student Loan Interest Deduction: The Student Loan Interest Deduction allows an individual to deduct any interest actually paid, not just accumulated, on a student loan during the calendar year, as long as certain conditions are met. The maximum deduction is $2,500 and is subject to income limitations. This deduction is actually an âabove the lineâ adjustment, which means you do not need to itemize your other deductions to get it. In other words, you can take the standard deduction and still deduct your student loan interest. Eligible Interest: The actual deduction requires the use of a more complex formula, but the basic premise is simple. In essence, you can only deduct the portion of each loan payment that represents interest.