How do you arrive at the amount shown in Box 1 on the IRS Form 1098-E?

• For tax years 2001 and prior, the amount entered in Box 1 of your 1098-E is the sum of interest that the U.S. Department of Education received on your Direct Loan(s) for that year.
• For tax years 2002 through 2006, the amount entered in Box 1 of your 1098-E is the sum of interest, capitalized interest, and loan origination fees that the U.S. Department of Education received on your Direct Loan(s) for that year.
• For tax year 2007 and greater, the amount entered in Box 1 of your 1098-E is the sum of interest paid, capitalized interest paid, and loan origination fees paid associated with the given tax year.
• The interest reported on your 1098-E statement could be different from the interest you may be able to deduct. While interest paid on Higher Education Loans may be deductible, there are specific IRS eligibility criteria, which must be met. For additional information regarding eligibility criteria and whether you qualify for the deduction, please visit the IRS Web site at:http://www.irs.ustreas.gov or call the IRS toll-free at one of these telephone numbers: 1-800-TAX-1040 or 1-800-TAX-FORM.
• Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Direct Consolidation Loans are potentially eligible for the interest deduction.
• The Direct Loan program reports Student Loan Interest paid information directly to the IRS.
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