Can I Deduct Student Loan Interest? The 2026 Limits, Explained
Published November 4, 2026
If you paid interest on a student loan in 2026, you may be able to deduct up to $2,500 of it. This is one of the few deductions you can take without itemizing. The catch is income. The deduction shrinks as your income rises, and it disappears above a certain level. The 2026 limits are set by Revenue Procedure 2025-32.
What are the 2026 income limits?
For 2026, the $2,500 deduction starts to phase out when your modified adjusted gross income (MAGI) is above $85,000 for most filers, and it is completely phased out at $100,000 or more. For joint returns, the phase-out starts above $175,000 and is complete at $205,000 or more. Publication 970 explains that MAGI is generally your adjusted gross income before subtracting the student loan interest deduction. The 2025 edition of Publication 970 shows the 2025 limits, which are different for joint filers, so use the 2026 figures for your 2027 return.
Who can take the deduction?
Publication 970 lists the main conditions:
- You paid interest on a qualified student loan, and you are legally obligated to pay it.
- The loan was taken out only to pay qualified education expenses.
- The loan is not from a related person, and it was not made under a qualified employer plan.
- The student was you, your spouse, or your dependent, and was enrolled at least half-time in an eligible program.
- Your filing status is any status except married filing separately, and no one else claims you as a dependent on their return.
The deduction is an adjustment to income. You claim it on Schedule 1 (Form 1040), and you can take it even if you take the standard deduction. Your lender should send Form 1098-E if it received $600 or more of interest from you during the year. If the form is missing, you can still deduct interest you actually paid, as long as you can prove it.
Worked example
Illustration only, with made-up round numbers: Owen is single. In 2026 he paid $1,800 of interest on his student loan, and his MAGI is $92,000.
Owen's MAGI is in the phase-out range, between $85,000 and $100,000. That means his deduction is smaller than the $2,500 maximum, and it is also capped at the interest he paid. Publication 970's Student Loan Interest Deduction Worksheet figures the exact amount, so he should use it rather than guess.
If Owen's MAGI had been $110,000, he would get no deduction at all, even though he paid interest. Income is the first thing to check.
What is the most common mistake?
Using a limit from an older guide. The 2025 phase-out figures for joint returns were different, and so were some of the rules in older editions. Another common mistake is deducting interest on a loan from a relative or on a loan used for something other than qualified education expenses. Publication 970 says those loans don't count.
What should I do next?
- Find your Form 1098-E, or your loan servicer's statement of interest paid in 2026.
- Add up your MAGI, and check it against the 2026 limits above.
- Use Publication 970's worksheet to figure the exact deduction if your income is in the phase-out range.
A credentialed tax preparer can help if your loan was consolidated, if you had both a loan and an education credit, or if you are not sure whether the loan qualifies.
If you'd like a second set of eyes on your own return, you can learn more about our appointments on our home page.
Sources: Revenue Procedure 2025-32, section .29 (2026 student loan interest phase-out, $85,000 and $100,000; $175,000 and $205,000 for joint returns; $2,500 maximum under section 221); IRS Publication 970 (2025 edition), Student Loan Interest Deduction, including the adjustment-to-income, Form 1098-E, qualified loan and worksheet sections. This is general information, not advice about your specific return.
Sources: Sources: Revenue Procedure 2025-32, section .29 (2026 student loan interest phase-out, $85,000 and $100,000; $175,000 and $205,000 for joint returns; $2,500 maximum under section 221); IRS Publication 970 (2025 edition), Student Loan Interest Deduction, including the adjustment-to-income, Form 1098-E, qualified loan and worksheet sections. This is general information, not advice about your specific return. This is general information, not advice about your specific return.
