Allows gross income tax deduction for certain student loan interest.

This New Jersey bill (S 2405) creates a state tax deduction for taxpayers who pay interest on qualified student loans, matching the federal deduction rules. It allows a deduction equal to the amount claimed under federal law (currently up to $2,500 annually), subject to the same income limits: phased out for single filers earning over $70,000 (or $140,000 for joint returns) and eliminated above $85,000 ($170,000 for joint filers). The deduction applies only to interest paid on loans used for higher education expenses at eligible schools, and married couples must file jointly to claim it. New Jersey taxpayers will automatically benefit from both state and federal deduction calculations without needing separate computations.