What is the requirement for student loan interest to be tax deductible?

The requirement for student loan interest to be tax deductible is that the loan must be for qualified higher education expenses for the taxpayer or their dependents. This means that the taxpayer can deduct the interest paid on loans used to pay for tuition, fees, room and board, and other necessary expenses related to education at an eligible institution.

This deduction is designed to ease the financial burden of education costs and is available to individuals regardless of whether the student (the borrower) has graduated or is enrolled full-time. The tax benefits apply to interest payments made during the year and have income limits, thereby making it accessible to a wide range of taxpayers investing in education.

The other options either misinterpret the requirements or introduce irrelevant conditions that do not pertain to the deductibility of student loan interest.