Student Loan Interest

Generally, student loan interest is interest paid on a loan used to pay qualified higher education expenses. Qualified higher education expenses include:

  • Tuition and fees
  • Room and board
  • Books
  • Supplies
  • Equipment
  • Other necessary expenses, such as transportation

A student loan interest deduction cannot be claimed for interest on a loan from a related person, a loan from a qualified employer plan, or a loan for which the borrower is not legally liable.

If interest was paid on a student loan awarded and funded through Duke University, the amount paid will be reported by the University. Loan origination fees, capitalized interest, interest on revolving lines of credit used to finance higher education, and interest on refinanced student loans are all considered student loan interest.

Please contact your loan provider if a statement showing the amount of interest paid is not received. This reporting should be shown on IRS Form 1098-E.

IRS References: IRS Form 1098-E, Publication 970 Tax Benefits for Education