Student Loan Interest Statement

2013

Department of the Treasury
Internal Revenue Service

Instructions for Forms
1098-E and 1098-T
Student Loan Interest Statement and Tuition Statement
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Forms 1098-E and 1098-T and their instructions, such as
legislation enacted after they were published, go to
www.irs.gov/form1098e or www.irs.gov/form1098t.

What's New
Truncating recipient’s identification number on
paper payee statements. Pursuant to proposed
regulations §§ 1.6042-4(b) and 301.6109-4
(REG-148873-09), all filers of Forms 1098-E and 1098-T
may truncate a borrower's (Form 1098-E) and student's
(Form 1098-T) identification number (social security
number (SSN), individual taxpayer identification number
(ITIN), or adoption taxpayer identification number (ATIN))
on payee statements. See part M in the 2013 General
Instructions for Certain Information Returns.

Reminders
General Instructions. In addition to these specific
instructions, you should also use the 2013 General
Instructions for Certain Information Returns. Those
general instructions include information about the
following topics.
Backup withholding.
Electronic reporting requirements.
Penalties.
Who must file (nominee/middleman).
When and where to file.
Taxpayer identification numbers.
Statements to recipients.
Corrected and void returns.
Other general topics.
You can get the general instructions at www.irs.gov/
form1098e or www.irs.gov/form1098t or by calling
1-800-TAX-FORM (1-800-829-3676).
Form W-9S. You may use Form W-9S, Request for
Student's or Borrower's Taxpayer Identification Number
and Certification, to obtain the student's or borrower's
name, address, taxpayer identification number, and
student loan certification to be used when filing Form
1098-E or 1098-T. Use of Form W-9S is optional; you may
collect the information using your own forms, such as
admission or enrollment forms, or financial aid
applications. You may collect the student's or borrower's
information on paper or electronically.
Electronic submission of Form W-9S. An
educational institution, insurer, or lender may establish a
system for students and borrowers to submit Form W-9S
Mar 01, 2013

electronically, including by fax. Generally, the electronic
system must:
1. Ensure the information received is the information
sent and document all occasions of user access that
result in the submission,
2. Make reasonably certain the person accessing the
system and submitting the form is the person identified on
Form W-9S,
3. Provide you with the same information as the paper
Form W-9S, and
4. Be able to supply a hard copy of the electronic
Form W-9S if the Internal Revenue Service requests it.
Also, if an electronic Form W-9S is used to obtain the
borrower's certification that all the loan proceeds are used
solely to pay qualified higher education expenses, your
electronic system must require, as the final entry in the
submission, an electronic signature by the borrower
whose name is on Form W-9S. The signature
authenticates and verifies the submission. See
Announcement 98-27, which is on page 30 of Internal
Revenue Bulletin 1998-15 at www.irs.gov/pub/irs-irbs/
irb98-15.pdf.
Electronic reporting. For Forms 1098-E and 1098-T,
you must file electronically if you are required to file 250 or
more returns. See part F in the 2013 General Instructions
for Certain Information Returns for more information.
Penalties. For Forms 1098-E and 1098-T, penalties may
be imposed for failure to file or failure to furnish correct
forms. However, under certain circumstances, the
penalties may be waived. See part O in the 2013 General
Instructions for Certain Information Returns for more
information.

Specific Instructions for Form 1098-E

File Form 1098-E, Student Loan Interest Statement, if you
receive student loan interest of $600 or more from an
individual during the year in the course of your trade or
business.
The $600 threshold applies to each borrower
regardless of the number of student loans obtained by
that borrower. However, you may file a separate Form
1098-E for each student loan of the borrower, or you may
file one Form 1098-E for the interest from all student loans
of the borrower.
Who must file. File Form 1098-E if you are a financial
institution, governmental unit (or any of its subsidiary
agencies), educational institution, or any other person
who receives student loan interest of $600 or more from
an individual during the year in the course of your trade or
business.

Cat. No. 27990J

Box 2. Checkbox

If more than one person has a connection with the loan,
only the first person to receive the interest payment must
file Form 1098-E. For example, a loan service or collection
agent receiving payments on behalf of the lender must
file.

Check this box if loan origination fees and/or capitalized
interest are not reported in box 1 for loans made before
September 1, 2004.

Qualified student loan. To be reportable for 2013, a
student loan must be either:
Subsidized, guaranteed, financed, or otherwise treated
as a student loan under a program of the Federal, state, or
local government, or of a postsecondary educational
institution, or
Certified by the borrower as a student loan incurred
solely to pay qualified higher education expenses. You
may use Form W-9S to obtain the certification.

File Form 1098-T, Tuition Statement, if you are an eligible
educational institution. You must file for each student you
enroll and for whom a reportable transaction is made.
Also, if you are an insurer, file Form 1098-T for each
individual to whom you made reimbursements or refunds
of qualified tuition and related expenses.

Specific Instructions for Form 1098-T

Exceptions. You do not have to file Form 1098-T or
furnish a statement for:
Courses for which no academic credit is offered, even if
the student is otherwise enrolled in a degree program;
Nonresident alien students, unless requested by the
student;
Students whose qualified tuition and related expenses
are entirely waived or paid entirely with scholarships; and
Students for whom you do not maintain a separate
financial account and whose qualified tuition and related
expenses are covered by a formal billing arrangement
between an institution and the student's employer or a
governmental entity, such as the Department of Veterans
Affairs or the Department of Defense.

Revolving accounts. Report interest paid on revolving
accounts, such as credit card accounts, only if the
borrower certifies that all the loan proceeds are solely
used to pay qualified higher education expenses. You do
not have to verify the borrower's actual use of the funds.
Do not report interest on mixed use loans.
Loans under qualified plans. Do not report interest on
loans made under a qualified employer plan, as defined in
section 72(p)(4), or under a contract purchased under a
qualified employer plan within the meaning of section
72(p)(5).
Additional information. For more information about
reporting student loan interest, see Regulations section
1.6050S-3.

Who must file. You must file Form 1098-T if you are an
eligible educational institution. An eligible educational
institution that is a governmental unit, or an agency or
instrumentality of a governmental unit, is subject to the
reporting requirements of Form 1098-T. A designated
officer or employee of the governmental entity must satisfy
the reporting requirements of Form 1098-T.
Eligible educational institutions may choose to report
payments received, or amounts billed, for qualified tuition
and related expenses. The eligible educational institution
must use the same reporting method for all calendar years
unless the IRS grants permission to change the reporting
method. For information on how to obtain automatic
consent to change your reporting method, see the
instructions for box 3, later.
If another person receives or collects payments of
qualified tuition and related expenses on your behalf, the
other person must file Form 1098-T. However, if the other
person does not possess the information necessary to
comply with the reporting requirements of Form 1098-T,
then you must satisfy the reporting requirements of Form
1098-T.
Also, if you are an insurer engaged in a trade or
business of making refunds or reimbursements of
qualified tuition and related expenses, you are required to
file Form 1098-T. See the instructions for box 10, later.

Statements to borrowers. If you are required to file
Form 1098-E, you must provide a statement or acceptable
substitute, on paper or electronically, to the borrower. For
more information about the requirements to furnish a
statement to the borrower, see part M in the 2013 General
Instructions for Certain Information Returns.
Recipient's/lender's name, address, and telephone
number box. Enter the name, address, and telephone
number of the filer of Form 1098-E. Use this same name
and address on Form 1096, Annual Summary and
Transmittal of U.S. Information Returns.
Account number. The account number is required if
you have multiple accounts for a recipient for whom you
are filing more than one Form 1098-E. Additionally, the
IRS encourages you to designate an account number for
all Forms 1098-E that you file. See part L in the 2013
General Instructions for Certain Information Returns.

Box 1. Student Loan Interest Received by
Lender

Enter the interest you received on a student loan(s) during
the calendar year. For loans made on or after September
1, 2004, you are required to include in box 1 payments of
interest as described in Regulations section 1.221-1(f).
Under that regulation, interest includes capitalized interest
and loan origination fees that represent charges for the
use or forbearance of money. See Regulations section
1.221-1(f).

Eligible educational institution. An eligible educational
institution is a college, university, vocational school, or
other postsecondary educational institution that is
described in section 481 of the Higher Education Act of
1965 as in effect on August 5, 1997, and that is eligible to
participate in the Department of Education's student aid
programs. This includes most accredited public, nonprofit,
and private postsecondary institutions.
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Instructions for Forms 1098-E and 1098-T (2013)

institutional student business functions such as
admissions, registration, billings, and direct deposits.
The global consent process must meet all the consent,
disclosure, format, notice, and access period
requirements for electronic furnishing of Forms 1098-T as
required by paragraphs (a)(2) through (6) of Treasury
Regulations 1.6050S-2. For more information about the
requirements to furnish a statement to each student, see
part M in the 2013 General Instructions for Certain
Information Returns.

Qualified tuition and related expenses. Qualified
tuition and related expenses are tuition and fees required
for a student to be enrolled at or attend an eligible
educational institution.
The following are not qualified tuition and related
expenses.
Amounts paid for any course or other education
involving sports, games, or hobbies, unless the course or
other education is part of the student's degree program or
is taken to acquire or improve job skills.
Charges and fees for room, board, insurance, medical
expenses (including student health fees), transportation,
and similar personal, living, or family expenses.

Student's address. In the student's address box of Form
1098-T, enter the student's permanent address. That is,
enter the student's home or other long-term address
where he or she can receive forwarded mail. You may use
a temporary address only if you do not know the
permanent address.

Academic credit. Academic credit is credit awarded by
an eligible educational institution for the completion of
course work leading to a postsecondary degree,
certificate, or other recognized postsecondary educational
credential.
Example. Student A, a medical doctor, takes a course
at University X's medical school. Student A takes the
course to fulfill State Y's licensing requirement that
medical doctors attend continuing medical education
courses each year. Student A is not enrolled in a degree
program at University X and takes the medical course
through University X's continuing professional education
program. University X does not award Student A credit
toward a postsecondary degree on an academic
transcript for the completion of the course but gives
Student A a certificate of attendance upon completion.
University X is not required to file Form 1098-T for the
course taken by Student A.

Information contact and service provider. You must
provide your name, address, and telephone number. In
addition, you may include information on a third-party
service provider who filed the form or who may answer
questions about the statement. Enter the service
provider's information in the box below the student's name
and address.
You must provide the telephone number for the
information contact at the institution. Generally
CAUTION
this is an administrative office or department. Do
not provide the institution's general telephone number.

!

Account number. The account number is required if
you have multiple accounts for a recipient for whom you
are filing more than one Form 1098-T. Additionally, the
IRS encourages you to designate an account number for
all Forms 1098-T that you file. See part L in the 2013
General Instructions for Certain Information Returns.

Academic period. You must file Form 1098-T for each
student who is enrolled in your institution for any
academic period (for example, semester, trimester, or
quarter) in 2013, but see Exceptions, earlier. Determine
your enrollment for each period under your own rules or
use one of the following dates.
30 days after the first day of the academic period.
A date during the period when enrollment data must be
collected for purposes of the Integrated Postsecondary
Education Data System administered by the Department
of Education.
A date during the period when you must report
enrollment data to the state, to your governing board, or to
some other external governing body.

Box 1. Payments Received for Qualified Tuition
and Related Expenses

If you use this method of reporting, enter the total amount
of payments received for qualified tuition and related
expenses from all sources during the calendar year. The
amount reported is the total amount of payments received
less any reimbursements or refunds made during the
calendar year that relate to the payments received for
qualified tuition and related expenses during the same
calendar year. The amount reported is not reduced by
scholarships and grants reported in box 5.

Additional information. For more information about
reporting on Form 1098-T, see Regulations section
1.6050S-1. Also see Notice 2006-72, 2006-36 I.R.B. 363,
available at www.irs.gov/irb/2006-36_IRB/ar10.html for
guidance in a question and answer format on the
information reporting requirements for Form 1098-T.

Box 2. Amounts Billed for Qualified Tuition and
Related Expenses

If you use this method of reporting, enter the amounts
billed during the calendar year for qualified tuition and
related expenses. The amount reported is the total
amount billed less any reductions in charges made during
the calendar year that relate to the amounts billed for
qualified tuition and related expenses during the same
calendar year. The amount reported is not reduced by
scholarships and grants reported in box 5.

Statements to students. If you are required to file Form
1098-T, you must provide a statement or acceptable
substitute, on paper or electronically, to the student.
Electronic delivery of Form 1098-T. Educational
institutions may present the option to consent to receive
Form 1098-T electronically as part of a global “Consent To
Do Business Electronically,” combining consent for
electronic delivery of Form 1098-T along with other

Instructions for Forms 1098-E and 1098-T (2013)

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Box 3. Checkbox for Change of Reporting
Method

Box 6. Adjustments to Scholarships or Grants
for a Prior Year

Check this box if you have changed your method of
reporting (payments received or amounts billed). You
have changed your method if the method you are using
for 2013 is different than the method you used for 2012.

Enter the amount of any reduction to the amount of
scholarships or grants that were reported for any prior
year after 2002.

Box 7. Checkbox for Amounts for an Academic
Period Beginning in January through March of
2014

In general, you must make a written submission to the
IRS at least 3 months before the due date of the returns
for the year of the change. To change your method of
reporting for 2013, you must make the submission no later
than November 28, 2013, if you file your returns on paper
(or December 31, 2013, if you file electronically). For
additional requirements, see Rev. Proc. 2005-50, 2005-32
I.R.B. 272 available at www.irs.gov/irb/2005-32_IRB/
ar16.html.

Check this box if any payments received, or amounts
billed, for qualified tuition and related expenses reported
for 2013 relate to an academic period that begins in
January through March of 2014.

Box 8. Check if at Least Half-Time Student

Check this box if the student was at least a half-time
student during any academic period that began in 2013. A
half-time student is a student enrolled for at least half the
full-time academic workload for the course of study the
student is pursuing. Your institution's standard for a
half-time student work load must equal or exceed the
standards established by the Department of Education
under the Higher Education Act and set forth in 34 C.F.R.
section 674.2(b).

Box 4. Adjustments Made for a Prior Year
Payments received. Enter reimbursements or refunds of
qualified tuition and related expenses made during the
calendar year that relate to payments received that were
reported for any prior year after 2002.
Amounts billed. Enter any reductions in charges made
for qualified tuition and related expenses made during the
calendar year that relate to amounts billed that were
reported for any prior year after 2002.

Box 9. Check if a Graduate Student

Check this box if the student was a graduate student. The
student is a graduate student if the student was enrolled in
a program or programs leading to a graduate-level
degree, graduate-level certificate, or other recognized
graduate-level educational credential.

Box 5. Scholarships or Grants

Enter the total amount of any scholarships or grants that
you administered and processed during the calendar year
for the payment of the student's costs of attendance.
Scholarships and grants generally include all payments
received from 3rd parties (excluding family members and
loan proceeds). This includes payments received from
governmental and private entities such as the Department
of Veterans Affairs, the Department of Defense, civic, and
religious organizations, and nonprofit entities. However,
see Exceptions, earlier.

Box 10. Insurance Contract Reimbursements or
Refunds
If you are an insurer, enter the total amount of
reimbursements or refunds of qualified tuition and related
expenses that you made to the student during 2013.

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Instructions for Forms 1098-E and 1098-T (2013)