Effect of the Amount of Your Income on the Amount of Your Deduction. The amount of your student loan interest deduction is phased out (gradually reduced) if your MAGI is between $65,000 and $80,000 ($130,000 and $160,000 if you file a joint return).You cannot claim a student loan interest deduction if your MAGI is $80,000 or more ($160,000 or more if you file a joint return).ffect of the Amount of Your Income on the Amount of Your Deduction. The amount of your student loan interest deduction is phased out (gradually reduced) if your MAGI is between $65,000 and $80,000 ($130,000 and $160,000 if you file a joint return).