1098-E Software for Lenders: Prepare Student Loan Interest Statements

Who must report student-loan interest?

For 2026, the IRS generally requires Form 1098-E, Student Loan Interest Statement, when a person receives at least $600 of qualifying student-loan interest from an individual during the year in the course of a trade or business. This can include a lender, servicer, governmental unit or educational institution, subject to the IRS definitions and exceptions.

The $600 rule applies per borrower across that borrower's loans, rather than independently to each account. The IRS permits a separate form for each student loan or a combined form for the interest received from the borrower. A loan-servicing system should therefore support borrower-level review even when it uses separate account IDs.

What should the source export contain?

Borrower identity and loan reference

Include the borrower's name, address, TIN and stable account identifiers. Review loan transfers, changed loan numbers and borrowers with several loans before aggregating records. Keep enough internal reference data to trace a correction back to the originating account.

Box 1 — interest received

Reconcile Box 1 to interest actually received in the calendar year—not the outstanding loan principal or the entire payment. Applicable loan-origination fees and capitalized interest may be included under the IRS rules, including treatment depending on the loan origination date. A total payment ledger by itself is insufficient.

Box 2 and unusual account histories

For certain older loans, Box 2 identifies a specific circumstance involving unreported loan-origination fees or capitalized interest. Check the 2026 instructions instead of assuming the box is routinely selected. Review reversals, payment adjustments, borrower consolidation and portfolio transfers before creating the final file.

Preparing a repeatable 1098-E batch

Export supported CSV or Excel source data, check borrower identifiers, reconcile per-borrower interest totals, and run a review before generating recipient copies and IRS-upload-ready output. The 1098-E software page describes the 1099ERICH Windows preparation workflow. Verify the current installer and IRS layout for your tax year.

IRS submission versus outsourced filing

Preparing a filing file and transmitting it are distinct activities. You can use an authorized IRS IRIS account for supported submissions, or request the separate We E-File for You service. Confirm engagement, authorization, transmission channel and status reporting before transferring protected borrower data through the invitation-only workflow.

Official reference

See the 2026 IRS Instructions for Forms 1098-E and 1098-T for the filing threshold, Form 1098-E boxes and statements to borrowers.