Deducting the interest is appropriate as long as the student was a dependent when the loan was taken out and you are legally obligated to pay it (loan was in your name or you were a co-signer).
You must be in the wrong place (1099-Q instead of 1098-E???). There is no drop down box of dependents at student loan interest.
In TurboTax (TT), enter at:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
-Scroll down to:
--Education
-Student Loan Interest paid (form 1098-E)
You're only asked for the loan company name and amount of interest paid
