Our student loan interest tax deduction calculator is fully updated for the 2023 tax year, ready for filing by April 2024.

Most borrowers had zero interest for most of 2023, but the final part of the year could still yield interest deduction benefits. Borrowers with private student loans, commercially held FFEL loans, or Department of Health student loans could also benefit from the student loan interest deduction. Use our calculator to find out how much you could save.

What was your Modified Adjusted Gross Income (MAGI) in 2023? MAGI is a bit complicated to calculate. Your MAGI may be simialr to your AGI, but it's generally not the same. You can use your previous year tax return to calculate your MAGI. However, you deduction will depend on your MAGI in the current tax filing year.

How are you filing your 2023 taxes?

Did someone claim you as a dependent on 2023 taxes?

Were the student loans you made payments on in 2023 disbursed in your name?

What was your spouse's MAGI in 2023? MAGI is a bit complicated to calculate. Your MAGI may be simialr to your AGI, but it's generally not the same. You can use your previous year tax return to calculate your MAGI. However, you deduction will depend on your MAGI in the current tax filing year.

How much student loan interest did you (and your spouse, if Married Filing Jointly) pay in 2023? If you paid at least $600 in student loan interest, your student loan servicer must issue a 1098-E. This form displays how much interest you paid. If you paid less interest, check your account or contact your student loan servicer to find how much interest you've paid.

What state do you live in?

Student Loan Interest Deduction $1,000
Estimated Federal Tax Refund $220
Estimated State Tax Refund* $50
Lower IDR Payment** $100
Total annual savings in federal and state taxes $270
Total annual savings in federal and state taxes and IDR payments $370

*State income tax assumes single person making $75,000 and married couple making $150,000

** The student loan interest deduction reduces your AGI, which reduces your student loan payment on PAYE, SAVE, IBR, or ICR

Looks like you may not be eligible!

This could be because your loans are in someone else's name, you're being claimed as a dependent on someone else's taxes, or your income is too high.

How much is the student loan interest deduction actually worth to borrowers who can claim it? While it's possible to deduct up to $2,500 in student loan interest payments, there are several other rules and limitations.

Note that this deduction at most will save you a few hundred dollars. It's still worthwhile if you qualify, but it won't change your life like a significantly lower IBR payment could. You can get a copy of our full New IDR calculator with the button below.

Student Loan Interest Deduction Calculator FAQ

How much of my student loan interest is deductible?

Assuming you meet all the requirements to receive the student loan interest tax deduction, you can deduct up to $2,500 in qualifying interest payments within the tax year.

Can student loan interest be deducted for tax year 2023?

Yes, you will be able to deduct qualifying student loan interest payments for the 2023 tax year when you file your tax return in 2024. However, note that most federal student loans had zero interest for most of the year.

Is student loan interest deductible in all cases?

In terms of the types of student loans, both federal and private student loans are eligible for the deduction. You must also meet all other requirements. Contact a finance or accounting professional for advice on your specific situation.

What are the income limits for the student loan interest tax deduction?

The upper limits are a Modified Adjusted Gross Income (MAGI) of $90,000 for a single tax filer and $185,000 for a joint return. However, the tax benefits begin to be phased out starting at a MAGI of $75,000 for single and $155,000 for joint filers.

Do I have to itemize my deductions to claim the student loan interest tax deduction?

No. The deduction is what's called an “above-the-line deduction,” so you don't need to itemize to claim the benefit.

If my tax filing status is “Married filing separately,” can I claim this deduction?

No, you cannot claim this deduction if filing separately from your spouse.

If I'm filing taxes as “Married filing jointly,” can we each claim $2,500?

No. If you're filing taxes as married filing jointly, you can only deduct up to $2,500 total for both you and your spouse.

Who can claim this deduction?

In addition to the restrictions listed here, there are a few other important conditions to note. You (or someone on your behalf) must have paid interest on a qualified student loan (federal or private).

You must be legally obligated to pay this interest (i.e., someone who pays the interest but isn't legally required to, such as a family member or friend, cannot claim the deduction).

Finally, you can't be claimed as a dependent on someone else's return to be eligible.

Can I claim this deduction if I'm taking the standard deduction and not itemizing my deductions?

Yes, you can. You do not need to itemize your deductions to claim the student loan interest deduction.

Does refinancing my student loans impact student loan interest deduction eligibility?

It could, but it might not be an issue. Read more on that here.

More on the student loan interest deduction

For more information on the student loan interest deduction, check out these articles from the Student Loan Planner® blog:


If you want to get the best student loan updates and see what your payment will be on the New IDR plan, get your downloadable spreadsheet copy below.