Won't a tax deduction diminish the rebate one receives?

I am able to deduct the interest I paid on student loans, which reduces the amount of taxable income, which makes it look like I made less money, which reduces the amount of refund I will receive because if its a percentage of that income, the higher the amount the better. It seems to me, a tax deduction only helps if you owe the IRS,not it owing you, right???