Deduction for education loan interest: individuals may deduct interest paid for higher education loans when paid from taxable income. An individual may deduct interest paid in a tax year on a loan from a financial institution or approved charitable institution taken for pursuing higher education of the assessee or a defined relative, provided the payment is made from income chargeable to tax. The deduction covers interest only and is available in the initial tax year when interest payments commence and for a specified number of succeeding tax years or until the interest is fully paid, subject to the section's definitions of approved charitable institution, financial institution, higher education, initial tax year, and relative.