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The student-loan deduction still exists

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You may deduct qualifying student-loan interest without itemizing—but filing status, MAGI, and employer-paid interest can change the result.

THE IDEA

For 2026, the above-the-line student-loan interest deduction is the lesser of interest paid or $2,500. You do not need to itemize. Medical-school and residency-program loans can qualify.

$85K–$100Kphaseout · single/HoH/QSS
$175K–$205Kphaseout · MFJ

The deduction is unavailable to MFS filers and to anyone claimed as a dependent.

Your next steps

  1. Find actual interest paid during 2026.
  2. Check filing status and MAGI.
  3. Do not reuse interest excluded under employer assistance.

Check your understanding

Select each question to reveal the answer.

✓ The lesser of interest paid or $2,500.
✓ No. It is an above-the-line deduction.
✓ No.
✓ No. The same interest cannot receive both benefits.

Planning questions

  1. How much qualifying interest did you personally pay in 2026 after excluding employer assistance?
  2. What filing status and expected MAGI will determine whether the deduction is available?