Are US educated foreigners who are currently living and working abroad but who are paying their US student loans, eligible for an interest/tax refund?
What taxes are you expecting a refund of?A person whose only connection to the United States is having previously been admitted to the United States as a nonimmigrant student has, once they’ve left the United States, no ongoing tax obligations to the United States. Furthermore, since you live and work abroad, you will not have any of your income subject to US withholding, and so there are no excess withholdings from your income to be refunded.Since a nonresident alien is not entitled to apply for or receive US federally-subsidized student loans, any student loans you may have obtained while you were a nonresident alien studying in the US are purely private loans. You are not entitled to any benefit from the United States in exchange for paying your private debts.Honestly, I do not understand this question. Why would anyone think they’re entitled to free money from the US government simply because they’re paying off a private debt?The OQ has clarified the question in details added since I first answered. Apparently, the OQ is being confused by receiving a Form 1098-E from her loan provider, and misunderstood the explanatory materials that accompany this form.This is IRS Form 1098-E. Every US entity that receives $600 or more in interest payments from a person on a qualified student loan in a given calendar year is required to send this form (or an IRS-acceptable substitute) to the person who made those payments.The form that is sent to the payer must also includes instructions for the recipient that must include this language:A person (including a financial institution, a governmental unit, and an educational institution) that receives interest payments of $600 or more during the year on one or more qualified student loans must furnish this statement to you. You may be able to deduct student loan interest that you actually paid in 2022 on your income tax return. However, you may not be able to deduct the full amount of interest reported on this statement. Do not contact the recipient/lender for explanations of the requirements for (and how to figure) any allowable deduction for the interest paid. Instead, for more information, see Pub. 970, and the Student Loan Interest Deduction Worksheet in your Form 1040 or 1040A instructions.US federal income tax law allows, in most situations, for individuals who pay interest on a “qualified student loan” to exclude some or all of their income that was used to pay that interest from their taxable income; basically, the income used to pay the interest on the loan is not subject to taxation. This will generally reduce one’s tax liability. There is, however, no provision for refunding any of the interest.The law requires these notices to be sent to every person who pays interests to a US entity, whether or not that person is a US taxpayer. Obviously, someone who is not a US taxpayer will be unable to gain any tax benefit from this provision (the US taxable income of someone who is not a US taxpayer is obviously zero), but the loan holder is still required to send the notice.It generally pays to read the instructions that comes with such forms closely, with full attention to detail.