Who Can Claim the Deduction?
To claim the deduction, the taxpayer must have paid qualified student loan interest for an eligible student under all the following conditions:
Conduct a probing interview to verify that the taxpayer meets all these tests for the deduction.
Question: Can taxpayers who were dependents when they took out their student loan start to deduct student loan interest after they are no longer a dependent?
Answer: Yes. Although dependent taxpayers cannot claim the deduction, they can deduct interest payments made in later years when they can no longer be claimed as a dependent.