Yes. When a student loan is refinanced or multiple loans are consolidated, all of the capitalized interest is considered paid by the proceeds from the new loan. Please enter the information from Form 1098-E exactly as it appears.
Please keep in mind, however, that your student loan interest deduction for the year is capped at $2,500.
For more information, please see IRS Pub. 970 Tax Benefits for
Education, Chapter 4.
