GRADUATE Act

This legislation significantly expands the current tax deduction for student loan payments by amending the Internal Revenue Code. It broadens the scope of deductible expenses to include not only interest payments but also principal payments made on qualified education loans, renaming the deduction to simply "education loans." The bill substantially increases the maximum deduction available to taxpayers, setting it at $10,000 , with an additional $500 per dependent . It also raises the income thresholds at which the deduction begins to phase out, moving to $125,000 for individuals and $250,000 for joint filers . These changes are slated to take effect for taxable years beginning after December 31, 2025.