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Paents can NOT deduct student loan interest taken out in the name of a
child, even if the parents pay the interest. Only the person legally liable
for the loan can deduct the interest paid.
If the child who took out the loan is claimed as a dependent by the parent,
the child will not be able to deduct the interest.
We tax preparers need to look closely at all student loan statements
to ensure that we only allow the student loan interest deduction to the
taxpayer whose name appears upon the statement.

A student will be able to deduct the loan interest when they file their own tax return. That means they have income above the filing requirements and is more beneficial than filing as dependent with their parents.