Tam attended Brown University during 20162020. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $25,000 during college, of which $6,500 was paid for by scholarships. To finance her education, she borrowed $14,500 through a federal student loan program and borrowed another $10,500 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2021, she incurred $1,450 of interest on the federal loans and $1,050 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $128,500.

Required:

What amount of student loan interest can Tam and her spouse deduct in 2021, if any?

Tam's allowed deduction =?