If I had student loan payments being garnished/deducted from my paycheck does this count for paying towards loan?

Yes.  If your student loans are in default, and your wages are being garnished, or the government has seized your tax refund to repay your student loans, you are still eligible for the student loan interest tax deduction.  Whether the payments are voluntary or were forcibly made with wage or tax refund garnishment, you are entitled to the student loan interest tax deduction if you meet the following requirements:

• You paid interest on a qualified student loan in tax year 2020.
• You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
• You're legally obligated to pay interest on a qualified student loan.
• Your filing status is not married filing separately.
• Your MAGI is less than a specified amount, which is set annually.