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Student Loan Interest Deduction Expansion
Recent Bills/Student Loan Interest Deduction Expansion

Student Loan Interest Deduction Expansion

IntroducedFebruary 12, 2026
Introduced6 months ago
Intro
House
Senate
Pres
Introduced in House
Why This Matters

This bill expands the tax deduction for student loans to include payments toward the principal, making it easier for borrowers to reduce their taxable income. It aims to provide more financial relief for those repaying student loans.

If you have a student loan, you could save more money on your taxes starting in 2026.
Who this affects
Individuals repaying loans · Families repaying loans
What changes is this bill making?
  1. 1This bill allows people to deduct both interest and principal payments on student loans from their taxes.
  2. 2It increases the maximum deduction to $10,000 plus $500 for each dependent.
  3. 3The deduction starts to decrease for individuals earning over $125,000 and couples earning over $250,000.
  4. 4The changes apply to tax years starting after December 31, 2025.
  5. 5The bill updates tax rules to help borrowers manage their student loan payments.
Bill Progress1 of 4
Bills must pass the House, Senate, and be signed by the President to become law.
Intro
House
Senate
Pres
IntroducedCurrentFeb 12

Introduced in House

Sponsors
See all 8 sponsors
House
Senate
President

The President

Donald Trump
President
Awaiting Vote
Similar Bills
House Bill · HR 3285
1 of 4 · Introduced
Student Loan Interest Deduction Bill
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House Bill · HR 6677
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Restoring Graduate Student Loans
Professional Degree Access Restoration Act
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Senate Bill · S 308
1 of 4 · Introduced
Changes to Graduate Student Loans
Graduate Opportunity and Affordable Loans Act
·Education