As tax season approaches, FSA has released guidance on how student loan interest paid in 2025 will be reported for federal tax purposes. This information helps borrowers understand how and when they’ll receive IRS Form 1098-E, which reports interest paid on federal student loans and may support a tax deduction on their 2025 return.
Under What Circumstances Do Federal Loan Servicers Report Interest Payments on Form 1098-E?
- Federal loan servicers report payments on Form 1098-E if they received $600 or more in interest from a borrower during the tax year.
- If a borrower paid less than $600 in interest to a federal loan servicer during the tax year, they may visit the servicer’s website to find the exact amount of interest paid and, if needed, request a statement of interest paid.
How Many Form 1098-Es Should a Borrower Expect To Receive?
- Most borrowers who paid $600 or more in interest during 2025 will receive one Form 1098-E.
- Borrowers who had multiple servicers in 2025 may receive two or more 1098-Es.
- If a borrower has questions about 1098-Es, direct the borrower to their current federal loan servicer’s website for assistance.
What Are the Different Scenarios That May Apply to Form 1098-E Dissemination?
The two scenarios outlined below cover most federal student loan borrowers:
- Borrower’s current servicer was their only servicer in 2025: In this case, the federal loan servicer will provide the borrower with a copy of their Form 1098-E if the borrower paid $600 or more in interest in 2025. The servicer will send the 1098-E to the borrower via U.S. mail or electronically.
- Borrower had multiple servicers in 2025: In this case, each servicer will provide the borrower with a copy of their Form 1098-E if they paid $600 or more in interest to that servicer. If the total interest paid to all servicers is $600 or more, but less than $600 was paid to each individual servicer, the borrower may request a statement of interest paid from each servicer. Each servicer will send the statement to the borrower via U.S. mail or electronically.
Where Borrowers can get help
- Borrowers should visit their current federal loan servicers for Form 1098-E information.
- If a borrower is not aware of their servicer, they can log in to their StudentAid.gov account to identify their current federal loan servicer.
- Schools can also assists a borrower in identifying their current federal loan servicer by accessing the servicer information through the NSLDS Professional Access website. Schools can also find contact information for the appropriate servicer on the Loan Servicing Centers for Schools Contact Information page on the Knowledge Center website.
SOURCE: (LOANS-26-02) Loan Servicing Information – Reporting Student Loan Interest Payments for 2025