Zach attended Biola University during 2015-2019. He lived at home and was claimed by his parents as a dependent during his entire education. He incurred education expenses of $13,000 during college, of which $3,120 was paid for by scholarships. To finance his education, he borrowed $8,500 through a federal student loan program and borrowed another $4,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2020, he incurred $850 of interest on the federal loans and $450 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $110,500. Required: What amount of student loan interest can Zach and his spouse deduct in 2020, if any? Zach's allowed deduction