Congress·In Committee·H.R. 7536

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

GRADUATE Act

about 1 month ago·View on Congress.gov

Legislative Progress

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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

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

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

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

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Quiver Quantitative·25 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.