As tax time approaches, we want to share general information with the financial aid community about our reporting of student loan interest payments. If a borrower made federal student loan payments in 2024, the borrower may be eligible to deduct a portion of the interest paid on the borrower’s 2024 federal tax return. Student loan interest payments are reported to both the Internal Revenue Service (IRS) and the borrower on IRS Form 1098-E, Student Loan Interest Statement under specific circumstances.
Below we provide information about reporting student loan interest for 2024 through three questions and answers.
Under what circumstances do federal loan servicers report interest payments on IRS Form 1098-E?
Federal loan servicers report payments on IRS Form 1098-E if the interest received from the borrower in the tax year was $600 or more.
If a borrower paid less than $600 in interest to a federal loan servicer during the tax year, the borrower may visit his or her servicer’s website for the exact amount of interest paid during the year and, if needed, to request a statement of interest paid.
How many 2024 1098-E’s should a borrower expect to receive?
Most borrowers who paid $600 or more in interest during 2024 will receive one 1098-E. Borrowers who had multiple servicers in 2024 may receive two or more 1098-E’s. If a borrower has questions about 2024 1098-E’s, direct the borrower to his or her current federal loan servicer’s website for assistance.
What are the different scenarios that may apply to 2024 1098-E dissemination?
The two scenarios outlined below cover the majority of federal student loan borrowers:
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Borrower’s Current Servicer Was Their Only Servicer in 2024: In this case, a borrower’s current federal loan servicer will provide the borrower with a copy of his or her 1098-E if the interest paid in 2024 was $600 or more. The servicer may send the 1098-E to the borrower via U.S. mail or electronically.
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Borrower Had Multiple Servicers in 2024: In this case, each of a borrower’s federal loan servicers may provide the borrower with a copy of the borrower’s 1098-E if the interest paid to the individual servicer in 2024 was $600 or more. If the interest paid to each individual servicer is less than $600, but totals $600 or more across servicers, the borrower may request a statement of interest paid from those servicers. Each servicer may send the statement to the borrower via U.S. mail or electronically.
Contact Information
We appreciate the community’s support in directing borrowers to their current federal loan servicers for 2024 1098-E information.
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A borrower can log in to their Federal Student Aid account to identify his or her current federal loan servicer.
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A school that assists a borrower in identifying his or her current federal loan servicer can access the servicer information through the NSLDS Professional Access website. Contact information for the appropriate servicer also can be found on the Loan Servicing Centers for Schools Contact Information page on the Knowledge Center website.