Tax FAQ

 

What is FedLoan Servicing's tax policy?

FedLoan Servicing reports to the IRS when:

  • Any amount of interest is paid
  • AND/OR
  • If $600 or more debt was cancelled during a calendar year

FedLoan Servicing mails tax forms to the primary borrower if the loan:

  • Had $0.01 or more in interest paid during a calendar year
  • AND/OR
  • Had $600 or more of the debt cancelled during a calendar year

If you have enrolled in our Paperless Tax service, you will receive an email notification when your tax information is available in your Paperless Inbox (instead of receiving this information in the mail).

Borrowers who paid less than $0.01 in interest or had less than $600 of their debt cancelled during a calendar year must view their tax information for that year online, through Account Access.

How does this affect me?

Don't worry if you don't get any tax information from FedLoan Servicing in the mail. Even if FedLoan Servicing does not report to the IRS the amount of interest you paid or the amount of debt you had cancelled, you still need this information to file your income taxes. That's why it is available online:

If you have questions on how to use this information on your tax return, please contact:

  • The IRS at 1-800-829-1040 or www.irs.gov.
  • A tax professional.

My loans just transferred to FedLoan Servicing. Will my FedLoan Servicing 1098-E Student Loan Interest Statement include the interest for all of the payments I made this year?

No. The 1098-E Student Loan Interest Statement from FedLoan Servicing applies only to the time period after the transfer of your loan. In most cases, you should receive separate notification of your tax information for loans serviced by your previous servicer. If you have additional questions, please contact us at 1-800-699-2908.

How do I use the FedLoan Servicing tax information on my tax return?

If you have specific questions about your 1098-E Student Loan Interest Statement and/or your 1099-C Cancellation of Debt notice, please contact a tax professional or the IRS at 1-800-829-1040 or www.irs.gov.

If I lose my 1098-E and/or 1099-C forms, can you resend?

No, but these forms are available online. Sign in to Account Access to:

  • View the amount of interest paid or debt cancelled.
  • Print a copy of your 1098-E Student Loan Interest Statement and/or 1099-C Cancellation of Debt notice.

Be aware that the 1098-E Student Loan Interest Statement and 1099-C Cancellation of Debt notice from FedLoan Servicing apply only to the time period that FedLoan Servicing serviced your loan. FedLoan Servicing does not have any tax information about your loan prior to its transfer to our organization. If you lose the tax information that applies to your loan before this transfer, contact your previous loan servicer.

I am a co-maker on a student loan. Will I receive a 1098-E Student Loan Interest Statement and/or 1099-C Cancellation of Debt notice?

No. Only the primary borrower on the account will receive these forms.

I am not the borrower, but I make payments on a student loan. Can I claim the interest that I paid on my tax return?

Contact a tax professional or the IRS at 1-800-829-1040 or www.irs.gov. We cannot advise you on tax matters. FedLoan Servicing is required to report only to the primary borrower and to the IRS the amount of interest that was paid in the name of the primary borrower.

Will I receive a 1099-C notice?

You will receive a 1099-C Cancellation of Debt notice if $600 or more of your loan debt for which you were responsible was cancelled. FedLoan Servicing is required to report this cancellation to the IRS because the cancellation may be considered "income".

You will not receive a 1099-C notice if you had less than $600 in student loan debt cancelled. This information is available online.

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