A form 1098-E, Student Loan Interest Statement, is used to report interest of $600 or more paid to a lender for a student loan. In box 1, your lender reports the interest received by you during the year. The student loan interest deduction is available even if you don’t itemize.
There is a cap on the amount of interest you can claim each year. You can reduce your income subject to tax by up to $2,500 of qualified student loan interest annually.
If your mom and dad pay some of your loans, you can still claim the interest for purposes of the deduction. You may not deduct your student loan interest if you file as married filing separately or if someone else claims you as a dependent on his or her tax return.