What is the purpose of a 1098 tax form?

Form 1098-T, Tuition Statement, is a tax form that is used by eligible educational institutions for each student enrolled, notes the Internal Revenue Service. It is also used by insurers who made refunds or reimbursements of qualified tuition or other tuition-related expenses.

The form is used by financial institutions, the government, schools and other people who receive student loan interest in the amount of $600 or more from an individual during the tax year. Institutions filing Form 1098-T must also furnish the student with the same statement, either on paper or by making an electronic Form 1098-T available to the student, notes the IRS.