Yes, there is a method to do just that. However, we do want to make sure first that you're taking the deduction in the correct tax year. If you have a 2015 Form 1098-E (Education), then that information properly belongs on your 2015 tax return. If you've already filed your 2015 return, and now want to change, you'll need to "amend" your 2015 return. Directly below is a link that will tell you how to amend a 2015 tax return in TurboTax:
https://ttlc.intuit.com/questions/3410543
If you are asking instead about a 1098-E received this year, for the current tax year, then the method for deducting
origination fees and capitalized interest on a student loan is just the same; only in this instance you obviously wouldn't need to amend your return.
With respect to how to mechanically treat (and calculate) student loan origination fees and capitalized interest for tax deduction purposes, you will want to read the TurboTax information at the following link:
https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-a-1098-E--Student-Loan-Interest...
In particular, the last paragraph tells you how to determine the deduction amount (quoted below):
"An origination fee is typically a percentage of your loan that's withheld from the disbursed funds. You can include a portion of this fee as deductible interest. Dividing the origination fee by the number of years you have to pay off the loan gives you the amount you can treat as student loan interest each year. And if the lender capitalized (increased the principal loan balance) for unpaid accrued interest, you calculate the portion that's deductible each year in the same way as the origination fee."
Thanks for asking this important question.
