1098 student loan interest

[danhudsonjr]

My refund was showing $1300, I input my 1098s totaling $3200 in interest paid, but my refund only increased by $400. How is that possible?

[DoninGA]

Only $2,500 of student loan interest can be reported on a federal tax return.  The student loan interest is entered as an Adjustment to Income, not a tax refund or credit.  An adjustment to income reduces the Adjusted Gross Income thereby reducing the amount of taxable income.