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the amount you can deduct begins to "phase-out". if you make over 65k a year (and are filing single) you get to deduct a big fat ZERO. IT doesn't matter where you live, how much your rent is, what your expenses are, etc. Over 65k and ALL the interest is your to keep. I hate that damn Uncle Sam, as I'm up to my ears in student loan interest and can't deduct any of it...
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