Form 1098-E: Missing Interest, Fees, Capitalized Interest
Guides · Updated October 17, 2026 · 3 min read
General information, not tax, legal or financial advice. We are not the IRS or the Department of Education. Check IRS.gov or a qualified tax professional. Sources read on October 17, 2026. Dates and amounts after 2026 are expected. Examples use made-up numbers. This page contains no affiliate links.
Short answer: Pub. 970 says an institution that received $600 or more of interest on qualified student loans during 2025 must send Form 1098-E to each borrower by February 2, 2026 (January 31 fell on a Saturday). If you paid less, you may not get one, but you can still deduct the interest you paid. If you pay qualifying interest that isn't on the form (certain origination fees, capitalized interest), you can also deduct those amounts.
What counts as interest (IRS)
- Stated interest and voluntary interest payments.
- Loan origination fees that are for the use of money (not fees for services); treated as accruing over the loan's life. Loans made before September 1, 2004 may not show fees on the form; use a reasonable allocation method.
- Capitalized interest: unpaid interest added to principal is treated as interest and is deductible as principal payments are made; no deduction in a year with no payments.
- Interest on a refinanced loan or a single consolidation loan used only to refinance your qualified loans. If you borrow more than the original loan and use the extra for something else, you can't deduct interest on the refinanced loan.
How payments are allocated for tax
A payment applies first to unpaid stated interest, then to origination fees, then to capitalized interest, then to principal. This may differ from the statement. Pub. 970's example: $10,000 loan, $300 fee, $625 capitalized interest; two payments totalling $401.02 in 2025 were all deductible interest.
Not deductible
Interest you aren't legally obligated to pay; fees that pay for services; interest paid through certain loan repayment assistance programs such as the NHSC Loan Repayment Program.
For 2026
Form 1098-E for 2026 interest is expected to be due by February 1, 2027 (January 31, 2027 is a Sunday; our calendar inference using the IRS next-business-day pattern in the 2025 example, not a published date).
Related
Deduction and phaseout · Interest on Direct Consolidation Loans
FAQ
My 1098-E leaves out some interest.
Pub. 970 says you can also deduct qualifying interest that isn't on the form.
Do I need a W-9S?
The lender may ask for it to get your TIN and certify the loan's purpose.
What we could not verify
- The 2027 due date for Form 1098-E (our inference).
- How a servicer reports interest under RAP or after consolidation.
- IRS instructions for Form 1098-E (page not found on October 17, 2026).
- State rules.
Sources
- IRS, Publication 970 (2025), Tax Benefits for Education — https://www.irs.gov/publications/p970 (read October 17, 2026; chapters 4 and 10 read in the local text copy)
- IRS, Instructions for Form 1098-E — URL returned 404 on October 17, 2026; not used.