GRADUATE Act

This bill changes the federal tax deduction for student loans so that people can deduct all payments on a qualified education loan, including payments toward the loan principal, not just interest. The yearly deduction would be capped at $10,000, plus $500 for each dependent the taxpayer has. The deduction would phase out for people with modified adjusted gross income above $125,000, or $250,000 for joint returns, over the next $25,000 ($50,000 for joint returns) of income. These income limits would be adjusted for inflation after 2026, and the changes would apply to tax years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Daniel S. Goldman Democrat sponsor
• 8 cosponsors