Did your child recently graduate from college? He or she may have to repay student loans.
If so, a debtor can deduct up to $2,500 of interest on student loans per year. But the deduction is denied if you can claim the child as a dependent. So your child might make only minimal payments until next year.
Note: The deduction begins to phase out if AGI exceeds an annual limit ($60,000 for single filers in 2009).