Student Loan Interest
For 2002, you can deduct up to $2,500 of eligible student loan interest as described below. This deduction is available even if you don't itemize your deductions.

You can't take the deduction if:

• You are married filing a separate return, or
• Someone else is claiming you as a dependent, or
• Your modified adjusted gross income is over $65,000 ($130,000 if filing a joint return).

Eligible student loan interest is interest on a student loan meeting the following requirements:

• The student was you, your spouse, or your dependent (at the time the loan was made).

• The student was enrolled in a degree program and carried at least half a full-time course load.

• The loan was used for tuition, room and board, books, fees, transportation, and other necessary expenses.

• The loan is not from a related person.

• The interest isn't eligible for a home equity loan deduction or other deduction besides the student loan interest deduction.