Typically, those who have been forced by the recent economic factors to default on a student loan do not receive tax refunds. The refund dollars are applied to the loans. Will the same apply to the proposed 2008 tax rebates?

I am currently a graduate student. I have a few unsubsidized student loans that are still in deferment. Should I be able to deduct the interest that is accumulating on the loan now, or am I only able to count that when I am actually makign payments on the student loan?

I just want to make sure I understand something here..
When claiming moving expenses and student loan interest on 1040 lines 26 and 33, I can still claim the standard deduction, correct? This does not require itemization of deductions?

I paid off my entire defaulted student loan at the beginning of this month. I even received a paid in full letter. But today I just got a letter from the IRS that my $600 was applied to that loan by offset!! Apparently there wasn’t enough time between when I paid off the loan and then getting my rebate. I just tried to call the Missouri Department of Education, which my loan is through, but they are closed for the day. Does anyone know if I can get my $600 back???