It’s that time of the year – tax preparation time – and you may receive questions about the reporting of student loan interest payments.
In a recent Electronic Announcement, Federal Student Aid (FSA) outlined general information about the reporting of 2024 student loan interest payments.
Borrowers who made federal student loan payments in 2024 may be eligible to deduct a portion of the interest paid on their 2024 federal tax return. These payments are reported to the Internal Revenue Service (IRS) and to the borrower via IRS Form 1098-E (Student Loan Interest Statement).
A few key points to know:
- If the interest received from a borrower in the tax year was $600 or more, the Federal loan servicer will report the payments on IRS Form 1098-E.
- If the interest paid by the borrower is less than $600, the borrower may visit the servicer’s website to obtain the exact amount of interest paid.
- If a borrower has multiple servicers, two or more 1098-E forms may be received.
- The 1098-E form(s) may be sent to the borrower via U.S. mail or electronically.
Borrowers can log into their FSA account to determine their current federal loan servicer. Schools can assist borrowers in identifying their servicer through the NSLDS Professional Access website.
The Loan Servicing Centers for Schools Contact Information page on the Knowledge Center website includes the contact information for the loan servicers.
