I consolidated my student loans this year and 1098-E combines all interest paid off by the servicer and interest I paid pre-consolidation, do I report that whole amount?
Do I only report interest I paid, or, can I report the whole amount in box 1 even though it is combined interest I paid and interest the servicer paid to pay off my loan?
03485
1 Best answer
MinhT
Expert Alumni
Jun 3, 2019 11:09:50 AM
Yes, you can report the whole amount, but the deduction is limited to $2,500.
3 Replies
MinhT
Expert Alumni
Jun 3, 2019 11:09:50 AM
Yes, you can report the whole amount, but the deduction is limited to $2,500.
Anonymous18
Returning Member
Jun 3, 2019 11:09:51 AM
Thank you so much for your quick response!
Can I ask why that is possible? It seems odd to be able to report the whole amount when I only paid part of the interest and the rest was paid by the servicer during consolidation. I'm just trying to learn and understand.
MinhT
Expert Alumni
Jun 3, 2019 11:09:52 AM
When you consolidate your student loans, you will be responsible for repaying your loan servicer and the interest was paid in your name.