I 

118TH CONGRESS 

1ST SESSION H. R. 6594 

To amend the Internal Revenue Code of 1986 to expand the deduction 

for student loan interest to include payments toward principal, and 

to increase the value of the deduction. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 5, 2023 

Mr. GOLDMAN of New York (for himself, Ms. JACOBS, Ms. NORTON, Ms. 

MCCOLLUM, Ms. CROCKETT, Mr. KHANNA, and Ms. TOKUDA) introduced 

the following bill; which was referred to the Committee on Ways and 

Means 

A BILL 

To amend the Internal Revenue Code of 1986 to expand 

the deduction for student loan interest to include payments toward principal, and to increase the value of 

the deduction. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Generating Relief for 

5 Academic Debt Using Assisted Tax Efficiency Act’’ or the 

6 ‘‘GRADUATE Act’’. 

2 

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1 SEC. 2. EDUCATION LOAN DEDUCTION. 

2 (a) IN GENERAL.—Section 221 of the Internal Rev3 enue Code of 1986 is amended— 

4 (1) in the heading, by striking ‘‘INTEREST ON

5 EDUCATION LOANS’’ and inserting ‘‘EDUCATION

6 LOANS’’, 

7 (2) by amending subsection (a) to read as fol8 lows: 

9 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 

10 individual, there shall be allowed as a deduction for the 

11 taxable year an amount equal to the amounts paid by the 

12 taxpayer during the taxable year on any qualified edu13 cation loan.’’, 

14 (3) by amending subsection (b) to read as fol15 lows: 

16 ‘‘(b) MAXIMUM DEDUCTION.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), the deduction allowed by subsection (a) 

19 for the taxable year shall not exceed an amount 

20 equal to the sum of— 

21 ‘‘(A) $10,000, plus 

22 ‘‘(B) $500 multiplied by the number of de23 pendents of the taxpayer for such taxable year. 

24 ‘‘(2) LIMITATION BASED ON MODIFIED AD25 JUSTED GROSS INCOME.— 

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1 ‘‘(A) IN GENERAL.—The amount which 

2 would (but for this paragraph) be allowable as 

3 a deduction under this section shall be reduced 

4 (but not below zero) by the amount determined 

5 under subparagraph (B). 

6 ‘‘(B) AMOUNT OF REDUCTION.—The 

7 amount determined under this subparagraph is 

8 the amount which bears the same ratio to the 

9 amount which would be so taken into account 

10 as— 

11 ‘‘(i) the excess of— 

12 ‘‘(I) the taxpayer’s modified ad13 justed gross income for such taxable 

14 year, over 

15 ‘‘(II) $125,000 ($250,000 in the 

16 case of a joint return), bears to 

17 ‘‘(ii) $25,000 ($50,000 in the case of 

18 a joint return). 

19 ‘‘(C) MODIFIED ADJUSTED GROSS IN20 COME.—The term ‘modified adjusted gross in21 come’ means adjusted gross income deter22 mined— 

23 ‘‘(i) without regard to this section and 

24 sections 85(c), 911, 931, and 933, and 

4 

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1 ‘‘(ii) after application of sections 86, 

2 135, 137, 219, and 469.’’, and 

3 (4) in subsection (f)(1)— 

4 (A) by striking ‘‘after 2002’’ and inserting 

5 ‘‘after 2024’’, 

6 (B) by striking ‘‘$50,000 and $100,000’’ 

7 and inserting ‘‘$125,000 and $250,000’’, and 

8 (C) in subparagraph (B), by striking ‘‘cal9 endar year 2001’’ and inserting ‘‘calendar year 

10 2023’’. 

11 (b) CONFORMING AMENDMENT.—Section 62(a)(17) 

12 of such Code is amended to read as follows: 

13 ‘‘(17) EDUCATION LOAN PAYMENTS.—The de14 duction allowed by section 221.’’. 

15 (c) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to taxable years beginning after 

17 December 31, 2023. 

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