Bill · H.R. 7536· House(119-HR-7536)
GRADUATE Act
- Introduced
- 2/12/2026
- Last activity
- 2/12/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Daniel Goldman
- Cosponsors
- - 8 - 0
- Introduced
- In Committee
What this bill would do
The GRADUATE Act seeks to amend the Internal Revenue Code of 1986 regarding education loan deductions. It proposes to expand the deduction to include payments made toward the principal of a qualified education loan, rather than just interest. Additionally, the bill aims to increase the value of the deduction. The changes would allow a deduction for the total amount paid on a qualified education loan during the taxable year. There are specific limits on the maximum deduction amount and adjustments based on modified adjusted gross income. These amendments are intended to apply to taxable years beginning after December 31, 2025.
Yes· 3 of 7
Would people in their twenties and thirties be better off under this?+6
The expanded deduction for education loan payments directly benefits young adults paying off student debt.
Would middle-income households be better off under this?+6
The bill increases the amount of student loan payments that can be deducted from taxable income.
Would students be better off under this?+6
The bill provides significant relief for students and graduates by allowing deductions on principal loan payments.
The opposite
Does this reduce what the federal government spends?-3
Expanding and increasing the education loan deduction reduces federal tax revenue.
Would high-income households be better off under this?-2
The bill includes a phase-out mechanism that reduces the deduction for individuals earning over $125,000.
Who it would affect, and how
Potential Positive Impacts for People
-
Expanded Deduction Scope: By changing the heading and subsection (a), the bill allows taxpayers to deduct the amounts paid on any qualified education loan, which now includes payments toward the principal instead of just interest (Section 2, subsection a).
-
Increased Deduction Limit: The bill increases the base deduction amount to $10,000, plus an additional $500 for each dependent of the taxpayer (Section 2, subsection a, paragraph 2).
-
Higher Income Thresholds: The bill updates specific thresholds to $125,000 for individuals and $250,000 for joint returns (Section 2, subsection a, paragraph 4).
Potential Negative Impacts for People
- Deduction Reductions for Higher Earners: The deduction amount may be reduced for individuals whose modified adjusted gross income exceeds $125,000 (or $250,000 for joint returns) based on a specific ratio calculation (Section 2, subsection a, paragraph 2, subparagraphs A and B).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+6Good For Students+6Good For Young Adults+6Good For Low Income Households+4Good For High Income Households-2
- Education And Technology
- Improves College Affordability+5
- Economy And Finance
- Reduces Middle Class Taxes+6Reduces Government Spending-3
- Social Issues And Justice
- Improves Poverty Reduction+3
- 3/9/2026
- 1 Cosponsor added.
- 2/23/2026
- 1 Cosponsor added.
- 2/20/2026
- 1 Cosponsor added.
- 2/12/2026
- Referred to the House Committee on Ways and Means.
- 5 Cosponsors added.
- Introduced in House
Shomari FiguresDemocrat · Alabama
Al GreenDemocrat · Texas
Jesús GarcíaDemocrat · Illinois
Robert GarciaDemocrat · California
Sara JacobsDemocrat · California
Eleanor NortonDemocrat · District of Columbia
Chellie PingreeDemocrat · Maine
Janice SchakowskyDemocrat · Illinois