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United States student loan interest 2026

United States student loan interest deduction for 2026: maximum deduction, modified adjusted gross income phase-outs and qualified-loan rules.

Source: IRS, Revenue Procedure 2025-32Checked ·1 min read
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2026 maximum deduction
$2,500IRS, Revenue Procedure 2025-32
2026 MAGI phase-out, eligible non-joint returns
Above $85,000; eliminated at $100,000IRS, Revenue Procedure 2025-32
2026 MAGI phase-out, joint returns
Above $175,000; eliminated at $205,000IRS, Revenue Procedure 2025-32

2026 maximum and income ranges

The maximum deduction for qualified education-loan interest in 2026 is $2,500. It begins to phase out when modified adjusted gross income exceeds $85,000, or $175,000 for joint returns. It is eliminated at $100,000 or more, or $205,000 or more for joint returns. IRS, Revenue Procedure 2025-32 (opens in a new tab).

Interest and qualified loans

The deduction is the lesser of $2,500 or interest actually paid, including required and voluntarily prepaid interest. It is an adjustment to income, without an itemization requirement. Married filing separately is excluded. A qualified loan was taken out solely for qualified higher education expenses for the borrower, spouse or a dependent at the time of borrowing. IRS, student loan interest deduction (opens in a new tab).

Scope

This guide presents published deduction limits without calculating a claim or tax saving. It excludes individual loan qualification, dependency determinations and filing eligibility. General information only, not personalised tax, insurance or retirement advice.

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