refianced student loans have 1098-E from both lenders do I use both?

Forum|Forum|5 years ago
February 20, 2021
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We refinanced my wifes student loans from the US department of education to SoFi. We received a 1098-E from both lenders, however the USDeptEd 1098-E has an extremely high interest paid in box 1 due to SoFI paying that interest off with the refinance. Do I still submit both of them even though we didnt directly pay that interest to the USDeptEd that the 1098-E says as it was paid by the new lender and is part of our principle on the new loan.

Thank you

MAK70

Yes, you can include the interest from both lenders. You can include both the original and refinanced 1098-Es.

The student loan interest deduction includes interest on a loan used solely to refinance a qualified student loan of the same borrower. It also includes a single consolidation loan used solely to refinance two or more qualified student loans of the same borrower.