arrow_back Back to App

Student Loan Tax Relief: Expanded Deductions and Higher Limits

This new act expands the student loan interest deduction to include principal payments, not just interest. It also significantly increases the maximum deduction amount and raises income thresholds, allowing more individuals to benefit from tax relief on their education debt and potentially lowering their overall tax burden.
Key points
Allows taxpayers to deduct both interest and principal payments made on qualified education loans, a change from the previous interest-only deduction.
Increases the maximum annual deduction to $10,000, plus an additional $500 for each dependent.
Raises the income phase-out thresholds to $125,000 for single filers and $250,000 for joint filers, making the deduction accessible to more people.
These changes will apply to tax years beginning after December 31, 2023.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_6594
Sponsor: Rep. Goldman, Daniel S. [D-NY-10]
Process start date: 2023-12-05
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

GRADUATE Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6594.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-12-05.

What are the main provisions?

Key points include:

  • Allows taxpayers to deduct both interest and principal payments made on qualified education loans, a change from the previous interest-only deduction.
  • Increases the maximum annual deduction to $10,000, plus an additional $500 for each dependent.
  • Raises the income phase-out thresholds to $125,000 for single filers and $250,000 for joint filers, making the deduction accessible to more people.
  • These changes will apply to tax years beginning after December 31, 2023.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Goldman, Daniel S. [D-NY-10].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Education