GRADUATE Act

House Bill

H.R. 7536

119th Congress

GRADUATE Act

In Committee

Introduced:Feb 12, 2026

Primary Sponsor

Daniel Goldman

D - NY

Cosponsors

0

Quick Stats

Summary

This bill would expand tax breaks for Americans paying off student loans by allowing them to deduct not just the interest they pay, but also their payments toward the actual loan balance (principal). It would also increase the maximum amount borrowers can deduct on their tax returns, putting more money back in the pockets of the estimated 43 million Americans carrying student debt.

Latest Action

Referred to the House Committee on Ways and Means.

Introduced2/12/2026

StatusReferred to the House Committee on Ways and Means.

ChamberHouse

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Vote Prediction

GRADUATE Act

This bill would expand tax breaks for Americans paying off student loans by allowing them to deduct not just the interest they pay, but also their payments toward the actual loan balance (principal). It would also increase the maximum amount borrowers can dedu

Community Breakdown

Pass

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This bill would expand tax breaks for Americans paying off student loans by allowing them to deduct not just the interest they pay, but also their payments toward the actual loan balance (principal). It would also increase the maximum amount borrowers can deduct on their tax returns, putting more money back in the pockets of the estimated 43 million Americans carrying student debt.

Bill Number: 7536
Introduced: 2/12/2026
Status: Referred to the House Committee on Ways and Means.

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: GRADUATE Act
Bill Number: 7536
Sponsor: No sponsor
Status: Referred to the House Committee on Ways and Means.
Introduced: 2/12/2026
Summary: This bill would expand tax breaks for Americans paying off student loans by allowing them to deduct not just the interest they pay, but also their payments toward the actual loan balance (principal). It would also increase the maximum amount borrowers can deduct on their tax returns, putting more mo

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill would expand tax breaks for Americans paying off student loans by allowing them to deduct not just the interest they pay, but also their payments toward the actual loan balance (principal). It would also increase the maximum amount borrowers can deduct on their tax returns, putting more money back in the pockets of the estimated 43 million Americans carrying student debt.

Last updated: 2/23/2026

Key Points

Main provisions of the bill

Currently, borrowers can only deduct student loan interest payments (up to $2,500/year) - this bill would allow deductions for principal payments too, significantly expanding tax relief
The bill would increase the overall value of the student loan deduction, allowing borrowers to write off more of their payments each year at tax time
This change would particularly benefit borrowers who are aggressively paying down their loans, as larger payments typically go more toward principal than interest
The expanded deduction could save qualifying borrowers hundreds to thousands of dollars annually depending on their payment amounts and tax bracket

How This Impacts Americans

Potential effects on citizens and communities

This bill would primarily benefit middle-class Americans with student loan debt who are actively making payments, potentially saving them significant money at tax time. Young professionals, recent graduates, and families working to pay off educational debt would see the most direct impact through reduced tax bills. However, the benefit would be limited to those who itemize deductions and earn below the existing income phase-out thresholds for student loan interest deductions.

Policy Areas

No policy areas assigned yet.

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

7536, 119th Congress (2026). "GRADUATE Act". Source: Voter's Right Platform. https://votersright.org/bills/119-hr-7536

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