Student Loan Deduction Act of 2025

# Student Loan Deduction Act of 2025 - Summary **What the Bill Would Do** The Student Loan Deduction Act of 2025 would allow borrowers to deduct student loan interest payments from their taxable income. Currently, federal law limits this deduction to $2,500 per year. This bill appears designed to expand or modify that deduction, though specific details about the proposed changes are not available in the information provided. **Who It Affects** The bill would primarily benefit current and former college students who carry federal or private student loan debt.

Working professionals, recent graduates, and anyone making student loan payments would potentially see tax relief through a larger deduction, reducing the amount of income subject to federal taxes. **Current Status** As of now, the bill (S 2717) is in committee and has not yet been voted on by the full Senate. It was introduced by Senator Peter Welch (D-VT) in the 119th Congress. For the bill to become law, it would need to pass committee review, pass both the Senate and House, and be signed by the President.