Students and families repaying student loans may be able to claim a deduction against their federal income tax for interest paid on student loans. The deduction is an adjustment to income and does not require the taxpayer to itemize deductions to take advantage of the deduction. The allowed deduction amount is reduced if modified adjusted gross income falls into a certain range and is not available at all if it exceeds the high end of the range.
The tax law which authorized this deduction requires organizations which issue loans to report information to the IRS for borrowers who have paid over $600 of interest during the year. This information is reported on a 1098-E form each January. Borrowers may retrieve their 1098-E form (for Federal Perkins Loan and College Loans) here. Documents not retrieved by January 31st will be mailed to the borrower's home address on that date.
Federal Perkins Loans and St. Lawrence College Loans issued by St. Lawrence University are administered by UAS (University Accounting Services). UAS, therefore, prepares and mails 1098-E forms for these loans on behalf of St. Lawrence University. Borrowers and others with questions regarding these forms should call the UAS taxline number at 1-800-756-4311.
For more information on these tax credits, please refer to the IRS publication - Tax Benefits for Higher Education or speak to your tax accountant.