Question about Tax Returns. Can I use my Student Loans for a Tax Credit. How does that work?

Agent 47: Question about Tax Returns. Can I use my Student Loans for a Tax Credit. How does that work?
In my Student Loan accounts it says that I will be able to use a reportable tax interest form 1098E. Does that mean I can use my loan repayments as a tax credit or deductible? By the way, My loans are currently on Forbearance.

Answers and Views:

Answer by spicertax
You can deduct the loan interest shown on the Form 1098. That may not be all of your loan payments since loan principal is not deductible.

Answer by Griffin
If you receive a 1098, it will tell you want you can report on your taxes. That amount is technically not a deduction, it is an adjustment to your income. It would be entered on line 33 (of form 1040) or line 18 (of 1040A). It will reduce you overall taxable income in a manner similar to a deduction. See page 30 of the attached pdf link from the IRS.