Form 1098-E is used by lenders to report student loan interest of $600 or more received from a borrower during the tax year. If your institution collects qualifying student loan interest payments, you are required to file Form 1098-E with the IRS and provide a copy to each borrower.
Our platform makes 1098-E eFiling fast, accurate, and IRS-compliant — whether you’re a large servicer handling thousands of accounts or a smaller institution filing for a handful of borrowers.
Form 1098-E — the Student Loan Interest Statement — is the IRS information return filed by lenders, loan servicers, and financial institutions to report qualifying student loan interest received. Borrowers use the amount reported in Box 1 to claim the student loan interest deduction (up to $2,500 above-the-line) on their federal income tax return, subject to MAGI phaseout limits.
You must file Form 1098-E if you received $600 or more in student loan interest from a single borrower during the calendar year in the course of your trade or business. Filers include:
Note: The $600 threshold applies per borrower, regardless of how many student loans that borrower holds. If multiple parties are connected to a loan, only the first to receive interest must file. You may file one combined Form 1098-E covering all of a borrower’s loans, or a separate form per loan.
|
Milestone |
Deadline |
|
Borrower copies furnished |
January 31 |
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IRS paper filing |
February 28 |
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IRS eFile submission |
March 31 |
Late or incorrect filings may result in penalties of $50–$290 per form, depending on how late the filing is. Intentional disregard carries higher penalties with no cap.
What is Form 1098-E used for?
Form 1098-E is used by lenders and loan servicers to report student loan interest of $600 or more received from a borrower during the tax year. Borrowers use it to claim the student loan interest deduction on their federal income tax return.
Who must file Form 1098-E?
Any financial institution, governmental unit, educational institution, or loan servicer that receives $600 or more in qualifying student loan interest from an individual borrower during the year must file Form 1098-E.
What is the $600 threshold for Form 1098-E?
Filers must issue Form 1098-E when the total student loan interest received from a single borrower reaches $600 or more in a calendar year. The threshold applies per borrower, regardless of how many loans they hold.
When is Form 1098-E due?
Borrower copies must be furnished by January 31. IRS paper filings are due February 28, and IRS electronic filings are due March 31.
What student loan interest can borrowers deduct?
Borrowers may deduct up to $2,500 of qualifying student loan interest per year as an above-the-line deduction on their federal return, subject to MAGI phaseout limits set annually by the IRS. The phaseout for 2025 begins at $85,000 for single filers and $170,000 for married filing jointly.
Can I file one Form 1098-E for all of a borrower’s loans?
Yes. You may file a single Form 1098-E covering interest from all of a borrower’s student loans, or a separate form per loan — whichever approach fits your reporting system.
Can I eFile multiple 1098-E forms at once?
Yes. Our platform supports bulk uploads so loan servicers can file for thousands of borrowers in a single submission.
What happens if I miss the 1098-E filing deadline?
The IRS may impose per-form penalties ranging from $50 to $290 depending on how late the filing is. Missing the borrower copy deadline may also delay borrowers’ ability to claim the student loan interest deduction on their own returns.
Stay compliant with IRS student loan interest reporting requirements. Start your free 7-day trial and eFile 1098-E forms directly with the IRS today.
