Posted Date: January 19, 2018

Author:  Federal Student Aid

Subject: Loan Servicing Information - Reporting Student Loan Interest Payments for 2017

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 2017, the borrower may be eligible to deduct a portion of the interest paid on the borrower’s 2017 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.

Below we provide information about reporting student loan interest for 2017 through three basic questions and answers.

Under what circumstances do federal loan servicers report interest payments on IRS Form 1098-E?

As required by the IRS, federal loan servicers must report payments on IRS Form 1098-E by January 31, 2018 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 contact his or her servicer for the exact amount of interest paid during the year and to request a 1098-E.

How many 2017 1098-E’s should a borrower expect to receive?

Most borrowers who paid $600 or more in interest during 2017 will receive one 1098-E. Borrowers who had multiple servicers in 2017 may receive two or more 1098-E’s. If a borrower has questions about 2017 1098-E’s, direct the borrower to his or her current federal loan servicer for assistance.

What are the different scenarios that may apply to 2017 1098-E dissemination?

The two scenarios outlined below cover the vast majority of federal student loan borrowers.

1) Borrower’s Current Servicer Was Only Servicer in 2017: 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 2017 was $600 or more. The servicer may send the 1098-E to the borrower via U.S. mail or electronically.
   
2) Borrower Had Multiple Servicers in 2017: In this case, each of a borrower’s federal loan servicers will provide the borrower with a copy of his or her 1098-E if the interest paid to the individual servicer in 2017 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 1098-E from those servicers. Each servicer may send the 1098-E 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 2017 1098-E information.

   

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