Financial institutions, government agencies, and educational lenders use IRS Form 1098-E to report student loan interest of $600 or more paid during the tax year. Borrowers may use this form to claim the student loan interest deduction when filing taxes.
👉 For easier compliance, consider using 1098-E filing software to prepare and submit these forms electronically.
What Loans Qualify?
Not every loan qualifies. A loan counts as a qualified student loan if it meets one of the following conditions:
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It was subsidized, guaranteed, financed, or treated as a student loan under a federal, state, or local program, or issued by a postsecondary educational institution.
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It was incurred solely to pay qualified higher education expenses for the borrower.
Step-by-Step: How to Fill Out IRS Form 1098-E
Account Number
Provide the unique identifier your institution assigns to the borrower.
Box 1: Student Loan Interest Received
Report the total amount of student loan interest received during the year.
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Loans originated on or after September 1, 2004: Include loan origination fees and capitalized interest.
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Loans made before September 1, 2004: You may deduct origination fees and capitalized interest not included in Box 1.
Box 2: Loan Origination Indicator
Check this box if the loan originated on or after September 1, 2004, and origination fees and/or capitalized interest are excluded from Box 1.
Filing Deadlines You Need to Know
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Copy B must be sent to the borrower or student by January 31.
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Copy A must be filed with the IRS by February 28 (paper) or March 31 (electronic filing).
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Copy C should be kept by lenders for their own records.
👉 To avoid late penalties, you can efile Form 1098-E using IRS-approved software.
Why Didn’t I Receive a Form 1098-E?
Borrowers may not receive a 1098-E for several reasons:
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Interest payments totaled less than $600 for the tax year.
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The form was mailed to the wrong address.
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A valid Social Security Number was not on file.
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Payments did not count as qualified student loan payments (for example, deferment, forbearance, or grace periods).
Key Takeaways
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Form 1098-E reports student loan interest of $600 or more.
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Borrowers may claim a student loan interest deduction when filing taxes.
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Filing deadlines follow the IRS schedule: January 31, February 28, and March 31.
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If you didn’t receive a 1098-E, contact your loan servicer to confirm eligibility.
By following these steps and using 1098-E reporting software, you can stay compliant, reduce administrative stress, and file accurately.
1098-E Filing Solutions
Easily handle your IRS Form 1098-E student loan interest reporting with our secure solutions. File electronically using our software, or outsource the entire process to our experienced team. Save time, lower costs, and stay compliant — while ensuring accuracy and peace of mind.
Call our sales office at (480) 706-6474 to get started.