How to File Form 1098-E: Student Loan Interest Reporting for Lenders and Servicers

Filing Form 1098-E accurately and on time is essential for lenders and loan servicers that receive student loan interest payments. Understanding the reporting requirements, recipient thresholds, and IRS deadlines can help avoid penalties and ensure compliance. Read on to know how to file Form 1098-E accurately.

What Does Form 1098-E Report?

Before we get into how to file Form 1098-E, let’s talk about what the form reports. Form 1098-E reports qualified student loan interest received from a borrower during the year. It is used when reportable student loan interest meets the IRS filing threshold of $600 or more. The threshold applies to the borrower, not the loan. So if one borrower has several student loans and the total reportable interest reaches the threshold, reporting is usually required.

Form 1098-E provides a year-end student loan interest statement to the borrower and gives the IRS a matching record for tax reporting. It is important to remember that principal payments, tuition billing, and interest on mixed-use loans do not belong on Form 1098-E.

Form 1098-E is not limited to banks. Some common filers include lenders, student loan servicers, government student loan programs, educational institutions, and other holders of qualified student loans. The reporting depends on the interest payment and the business activity, not just the type of institution.

Note: If multiple parties are involved, the first person to receive the interest payment files the form. That means a servicing or collection agent receiving payments for the lender generally carries the reporting duty.

What is a Qualified Student Loan?

A loan is reportable on Form 1098-E only if it qualifies as a student loan under the IRS rules. That means the loan was made under a federal, state, local, or school student loan program, or the borrower certified that the proceeds were used only for qualified higher education expenses. This is why private or revolving loans may need borrower certification before they can be reported.

For revolving and private loans, interest is reportable only if the borrower certifies that the funds were used only for qualified education expenses. Mixed-use loans do not belong on Form 1098-E. To support this, the IRS allows the filer to use Form W-9S borrower certification or its own compliant paper or electronic process to collect the borrower’s name, address, TIN, and the necessary certification. Form W-9S is optional, but borrower certification is still needed when certification is the basis for reporting the loan.

Pre-Filing Checklist for a Clean 1098-E Process

A strong pre-filing process is needed before you start filing the form. Before filing Form 1098-E, the payer should confirm:

• The borrower’s legal name, mailing address, and taxpayer identification number
• The account number, if more than one Form 1098-E may be issued for the same borrower
• Whether the loan is a qualified student loan
• Whether the borrower-level annual interest total meets the $600 threshold
• The amount reported is interest, not principal
• Whether capitalized interest or loan origination fees should be included in box 1
• Borrower certification or Form W-9S data, if needed
• Servicing data and borrower payment ledger
• Year-end borrower statement support
• Borrower statement change and correction log

Recipient delivery rules are important as well. The filer should make sure:

• Copy B or an acceptable substitute is created for the borrower
• Electronic delivery is used only with valid consent and required disclosures
• The borrower statement may use a truncated TIN, but the IRS filing copy must show the full TIN

How to File Form 1098-E: A Step-by-Step Filing Guide

Step 1: Confirm the filing requirement

Before filing, check these three things first:

• The loan should be a qualified student loan.
• The borrower should be an individual.
• The annual interest total needs to meet the $600 per borrower threshold.

Step 2: Gather borrower details

Gather information about the borrower, such as their name, mailing address, TIN, and account number, when applicable.

Step 3: Calculate Box 1

You need to find the accurate amount to enter in Box 1. For that, report the total student loan interest received for the year.

Note: For loans that are made on or after September 1, 2004, Box 1 includes the capitalized interest and applicable loan origination fees when they represent charges for the use or forbearance of money.

Step 4: Complete the form and review the details

The next step is to enter the filer details and borrower details accurately. After that, add the interest amount in Box 1. You should only check Box 2 if the loan follows the pre-September 1, 2004, rule and Box 1 does not include origination fees or capitalized interest.

Step 5: Send borrower copy

You can send the borrower’s copy electronically only after they agree to electronic delivery and receive the required notices. Otherwise, provide the copy on paper.

The 1098-E deadline for sending the borrower Copy B for 2026 returns is February 1, 2027.

(The due date moves from January 31 because it falls on a Sunday.)

Step 6: File with the IRS

For 2026 returns, file by March 1, 2027, if filing on paper or March 31, 2027, if filing electronically. Filers with 10 or more aggregate information returns generally must eFile. For 2026 returns, IRIS is the IRS intake system for electronic Form 1098-E filing.

Missing a Form 1098-E filing or furnishing deadline can lead to penalties.

Real-Life Scenarios

Conclusion

The first step in accurate Form 1098-E filing is to confirm the loan, borrower, and Box 1 amount. It also relies on timely borrower statements and proper IRS filing. With those steps taken carefully, reporting interest on student loans is easier to defend and easier to fix if there is a change later.

Tax1099 can help support Form 1098-E preparation, filing, and recordkeeping workflows to make year-end easier for payers.

FAQs

1. What is the filing threshold for Form 1098-E?

A filer usually files Form 1098-E and sends the borrower statement when it receives $600 or more in student loan interest from that borrower during the year. This limit is checked for each borrower. It is not checked loan by loan.

2. Can Form 1098-E be sent online to the borrower?

Yes. A filer can send Form 1098-E online. The filer must first follow IRS consent and disclosure rules.

3. Is Form W-9S required?

No. Form W-9S is not required. It is still a useful IRS form for collecting the borrower’s TIN and certification.

4. When is Form 1098-E due?

For 2026 returns, the borrower statement is due on February 1, 2027. The IRS paper copy is due on March 1, 2027. The IRS eFile copy is due on March 31, 2027.

Tax1099 can help you prepare Form 1098-E, deliver recipient copies, eFile, and keep records in one place.

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