The 17-year-old has developed a close bond with Swift in recent years and they are photographed together often, reports contact music.com.
"She's an amazing friend. I always get the, 'Tell us something nobody knows about Taylor' question. And it's like, we both respect each other tremendously, but we choose to keep our friendship out of the public eye," said Steinfeld.
"She's a really great person and an inspiration to me and many others," she added.