Skip to content
Congress·In Committee·18 days ago

Rep. Goldman's GRADUATE Act Would Expand Student Loan Tax Deduction to $10,000 Under House Review

Also known as: GRADUATE Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill, introduced by Representative Goldman, would change the tax rules to let people deduct both the interest and the principal they pay on student loans. Currently, the law only allows a tax break for the interest portion of a loan payment.
  • The new rules would allow most borrowers to deduct up to $10,000 of their total loan payments from their taxable income. Families would also get an extra $500 deduction for every dependent they claim, such as a child.
  • The full tax break would be available for individuals making up to $125,000 a year or married couples making up to $250,000. People earning more than those amounts would see the size of their deduction gradually decrease.
  • This change is designed to help people pay off their student debt faster by lowering their yearly tax bill. It recognizes that paying back the actual loan amount is just as much of a financial burden as paying the interest.
  • If Congress passes this bill, the new tax benefits would begin for the 2026 tax year. This would give the government and taxpayers time to prepare for the change in how education expenses are reported.
TaxesEducation

Milestones

2 milestones2 actions
Feb 12, 2026House

Referred to the House Committee on Ways and Means.

Feb 12, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

2026-01-01

New deduction rules would take effect for the 2026 tax year

If passed, borrowers making student loan payments starting January 1, 2026 could deduct up to $10,000 in total payments (interest plus principal) when they file their 2026 taxes in early 2027.

Related News

1 article
Quiver Quantitative·5 days ago

New Bill: Representative Daniel S. Goldman introduces H.R. 7536: Generating Relief for Academic Debt Using Assisted Tax Efficiency Act

The GRADUATE Act proposes expanding the student loan interest deduction to include principal payments. It increases the maximum deduction to $10,000 for the taxpayer plus $500 per dependent, with income phase-outs starting at $125,000 for individuals and $250,000 for married couples.

=

Source Information

Document Type

Congressional Bill

Official Title

GRADUATE Act

Bill NumberHR 7536
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(7)
D: 7

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.