Students and parents who are taxpayers and have taken any loans exclusively to pay for the cost of attendance may deduct interest they pay on these student loans. Taxpayers may deduct all interest paid on the loan up to an annual maximum of $2,500. The interest deduction is available for taxpayers with adjusted gross income under $75,000 for single filers, or under $150,000 for married taxpayers filing jointly.
The deduction is taken as an adjustment to income, which means that taxpayers may claim this deduction even if they do not itemize deductions. Complete information is available in IRS Publication 970, from your tax advisor, or fromhttp://www.irs.gov.