GRADUATE Act

The GRADUATE Act (HR 7536) amends tax law to expand the deduction for qualified education loan payments. It allows individuals to deduct up to $10,000 annually (plus $500 per dependent) for interest paid on such loans, increasing the previous limit. The deduction phases out for taxpayers with modified adjusted gross income above $125,000 ($250,000 for joint filers), with the new thresholds applying to taxable years after 2025. This directly affects individual taxpayers with education debt who itemize deductions, reducing their taxable income but not forgiving loan balances. The bill modifies existing tax code sections without creating new government programs or altering loan repayment terms.