I had the same problem. Someone else told me to just click "continue" on the state form page where it lists the amounts incorrectly, even though it's wrong. On the very next page, the amounts will show up correctly, listing the amount of your interest paid in the graduate box. The undergraduate box will now say 0. See my word document with screenshots that should be with this post. It must be a bug in Turbotax. Hope this helps!
