The current annual salary threshold for the student loan deduction is $80k if you file as single. This may seem like a lot but when you break down the components this threshold is very low. In today's world of higher education it is not uncommon to come out of a 4 year school with $100k+ in student loan debt with an interest rate anywhere from 4%-10%. For simplicity purposes assume a student has $100k in student loan debt at 7%. Depending on how long they have been paying the loan your average student will end up paying ~$6,000-$7,000 A YEAR in student loan INTEREST! If someone makes $80k they take home ~$60k, meaning they will have to pay 10+% of their take home pay to a financial institution. $80k is too low a threshold to not claim student loan interest ($2500 cap) as a deduction.
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