Taxes & Interest image

Taxes & Interest

You're required to repay your student loans with interest. Interest is calculated as a percentage of the amount you borrowed.

You may be able to deduct interest paid on your eligible student loans on your federal tax return, which could reduce your taxable income.


To access your Form 1098-E, log in to your account and select Tax Statements in the left menu.

Or call 844-NAVI-TAX (844-628-4829) and get your eligible interest amount through our automated voice system.

Remember: You don't need a physical copy of the form to file your taxes.

Our Tax ID Numbers

Navient's Tax ID number: 46-4054283

Navient – Department of Education Tax ID number: 52-1198289


If you have questions related to your tax statements or student loan interest, call us at 844-NAVI-TAX (844-628-4829).

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Find out when your tax statement will be available the fastest way – by email. It's quick, easy, and secure.

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About Student Loan Interest

The longer you take to pay off your loan, the more interest will accrue, increasing the amount you will need to repay.

Interest rates vary depending on the type of loan and lender, as well as the year the loan was disbursed if it is a FFELP or Direct Loan from the U.S. Department of Education.

These details are generally found in the agreement and disclosures you received when you took out your student loan.

Borrower Benefits

Your lender may offer certain benefits that can help lower your interest rate, such as incentives for consistent on-time payments or for enrolling in Auto Pay.

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Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students


Direct Unsubsidized Loans for Graduate Students and Professional Students


Direct PLUS Loans for Parents of Dependent Undergraduate Students and Direct PLUS Loans for Graduate and Professional Students


Who Sets Student Loan Interest Rates?

Direct Loans from the U.S. Department of Education

Congress sets interest rates on Direct Loans from the U.S. Department of Education through legislation that ties the rate to financial markets. Interest rates are determined each spring for new Direct Loans being made for the upcoming academic year – July 1 through June 30. Although most federal student loan interest rates are fixed for the life of the loan and will not change, some have a variable interest rate that can change annually.

Your student loan servicer does not set your student loan interest rate and cannot change it.

Loans Through the Federal Family Education Loan Program (FFELP)

Although new FFELP loans are no longer being made (the program was discontinued in 2010), Congress also set the maximum interest rate for these loans. Interest rates are either:

  • Fixed for the life of the loan and do not change; or
  • Variable and change annually.

Private Student Loans

Private student loan interest rates are determined by the lender that made the loan and are based on your credit history and that of your cosigner, if you have one. The interest rate may be variable or fixed for the life of the loan, depending on the contract you signed when you took out the loan. Variable rates may change as frequently as monthly based on the applicable financial index, such as LIBOR or Prime rate. Fixed rates will never change during the life of the loan.

Simple Daily Interest Calculation

The amount of interest that accrues on your loan is determined by a simple daily interest calculation, which you can estimate as follows:

Approximate Daily Interest
= (Unpaid Principal balance x Interest Rate)
÷ Number of Days in the Year

If you have multiple student loans, you likely have multiple interest rates.

To make it easier, log in to your account and use the Interest Estimator tool, which uses your current loan balances and interest rates to estimate interest accrual for you.

Go to the Tools & Requests page and select Interest Estimator. Once you are in the tool, select the number of days – up to 31 days in the future – and then Calculate to see how much interest is accruing on each of your loans for a given time period.

Log In to Use the Interest Estimator

Capitalized Interest

Interest capitalization is when Unpaid Interest is added to the Unpaid Principal. This occurs at certain times during the life of the loan, typically at the end of the grace period, a deferment, or a forbearance. Depending on your loan program and promissory note, interest may also be capitalized periodically during certain periods when payments are postponed and in connection with certain repayment plans.

Capitalization will cause the principal balance to increase, and future interest will accrue on that larger balance.

To minimize the effects of the capitalized interest on the amount you'll pay overall, you can pay the interest before it is capitalized. For example, you can pay the interest while you're in school instead of waiting until after graduation.

You can see any capitalized interest amounts in your Account History.

Log In to View Your Account History

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