GRADUATE Act
Sponsored By: Representative Goldman, Daniel S. [D-NY-10]
Introduced
Summary
Expands the tax deduction for education loans to cover principal payments as well as interest and raises the deduction cap. This bill would change who can claim the deduction and how much they can deduct, and it phases out benefits for higher earners starting at set income thresholds.
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- Student loan borrowers would be able to deduct total education loan payments, not just interest, with a new maximum of $10,000 plus $500 per dependent. The change would apply to tax years beginning after December 31, 2025.
- Households with dependents benefit directly because each dependent increases the deduction cap by $500, boosting the deductible amount for families.
- Higher-income filers face an income-based phase-out. The deduction would begin reducing once Modified Adjusted Gross Income exceeds $125,000 for single filers or $250,000 for joint filers, phasing out over $25,000 or $50,000 respectively.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Bigger deduction for student loan payments
You would be able to deduct what you pay during the year on qualified education loans, including principal and interest. The deduction would be limited to $10,000 plus $500 for each dependent. The cutback would start when your modified adjusted gross income (MAGI) is over $125,000 ($250,000 if married filing jointly). It would be reduced in proportion and fully phased out over the next $25,000 ($50,000 joint). MAGI is defined as adjusted gross income determined without regard to sections 85(c), 911, 931, and 933 and after application of sections 86, 135, 137, 219, and 469. The change would apply to tax years beginning after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Goldman, Daniel S. [D-NY-10]
NY • D
Cosponsors
Rep. Jacobs, Sara [D-CA-51]
CA • D
Sponsored 2/12/2026
Rep. Garcia, Robert [D-CA-42]
CA • D
Sponsored 2/12/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 2/12/2026
Rep. Figures, Shomari [D-AL-2]
AL • D
Sponsored 2/12/2026
Pingree
ME • D
Sponsored 2/12/2026
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 2/20/2026
Rep. Green, Al [D-TX-9]
TX • D
Sponsored 2/23/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov