Frequently Asked Questions

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Tax Information

How does the deduction work?

You may be able to claim a student loan interest deduction if you meet income and other eligibility guidelines. This deduction is an adjustment to income, so if you qualify you can claim it even if you don't itemize your deductions on Schedule A (Form 1040).

Learn more about how student loan interest deduction works >

 

Where can I get more information about student loan interest deductions?

You can start by reading the information we’ve put together for you on this website. Learn more about how student loan interest deduction works>

Which VSAC loan types are qualified student loans for purposes of the Taxpayer Relief Act?

Refer to the How Student Loan Interest Deduction Works page for a list of VSAC student loans that qualify for a tax deduction.

When will I receive my 1098-E interest paid amount?

If you've qualified VSAC student loans, your 1098-E interest paid figure will be mailed to you by February 1. You can also view this figure by logging in to your MyVSAC account and selecting “Loan Info & Make Payments.” Form 1098-E reports the amount of interest paid for all qualified loans you have with VSAC. If your education loan isn't a qualified loan type, you won't receive Form 1098-E.

Does the amount of interest reported in Box 1 include all possible amounts that may be deducted for loans made on or after September 1, 2004?

The amount of interest reported in Box 1 of Form 1098-E includes payments attributable to loan origination fees and/or capitalized interest received on qualified education loans made on or after September 1, 2004.

If your loan was made before September 1, 2004 you may be able to deduct additional loan origination fees and capitalized interest not otherwise included or reported in Box 1. For further information, see IRS Publication 970.

Do I need to file Form 1098-E with my federal tax return?

No, VSAC also reports the interest amount to the IRS.

I'm also repaying other (non-VSAC) student loans. Will that interest be reported to me?

You should receive Form 1098-E for qualified student loans from each of your other lenders. For the Federal Perkins Loan, you should receive one from either your school or the Perkins Loan servicer. If you paid less than $600 in interest on a qualifying loan, the lender is not required to send you Form 1098-E; however, you may still be able to deduct this interest. If you have any questions about non-VSAC student loans, please contact the organizations that service those loans.

Where can I find information on the American Opportunity and Lifetime Learning credits?

Visit https://www.irs.gov/uac/tax-benefits-for-education-information-center for information on tax benefits for education.