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Student loan interest is the interest you pay yearly on a qualified student loan. It includes both mandatory and voluntary prepaid interest payments. You can deduct two thousand dollars or the interest amount you actually paid during the year, whichever is less. The deduction is phased out and eventually phased out when your Modified Adjusted Gross Income amount reaches the year limit for your filing status. And a qualified student loan is a loan you have taken out to pay only for qualified higher education expenses. To clarify the situation, you should contact the financial advisor from the finity group.