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 pay-
ments toward principal, and to increase the value of 
the deduction. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Generating Relief for 
Academic Debt Using Assisted Tax Efficiency Act’’ or the 
‘‘GRADUATE Act’’. 
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SEC. 2. EDUCATION LOAN DEDUCTION. 
(a) IN GENERAL.—Section 221 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in the heading, by striking ‘‘INTEREST ON 
EDUCATION LOANS’’ and inserting ‘‘EDUCATION 
LOANS’’, 
(2) by amending subsection (a) to read as fol-
lows: 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 
individual, there shall be allowed as a deduction for the 
taxable year an amount equal to the amounts paid by the 
taxpayer during the taxable year on any qualified edu-
cation loan.’’, 
(3) by amending subsection (b) to read as fol-
lows: 
‘‘(b) MAXIMUM DEDUCTION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the deduction allowed by subsection (a) 
for the taxable year shall not exceed an amount 
equal to the sum of— 
‘‘(A) $10,000, plus 
‘‘(B) $500 multiplied by the number of de-
pendents of the taxpayer for such taxable year. 
‘‘(2) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.— 
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‘‘(A) IN
GENERAL.—The amount which 
would (but for this paragraph) be allowable as 
a deduction under this section shall be reduced 
(but not below zero) by the amount determined 
under subparagraph (B). 
‘‘(B) 
AMOUNT
OF
REDUCTION.—The 
amount determined under this subparagraph is 
the amount which bears the same ratio to the 
amount which would be so taken into account 
as— 
‘‘(i) the excess of— 
‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) $125,000 ($250,000 in the 
case of a joint return), bears to 
‘‘(ii) $25,000 ($50,000 in the case of 
a joint return). 
‘‘(C) MODIFIED
ADJUSTED
GROSS
IN-
COME.—The term ‘modified adjusted gross in-
come’ means adjusted gross income deter-
mined— 
‘‘(i) without regard to this section and 
sections 85(c), 911, 931, and 933, and 
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‘‘(ii) after application of sections 86, 
135, 137, 219, and 469.’’, and 
(4) in subsection (f)(1)— 
(A) by striking ‘‘after 2002’’ and inserting 
‘‘after 2024’’, 
(B) by striking ‘‘$50,000 and $100,000’’ 
and inserting ‘‘$125,000 and $250,000’’, and 
(C) in subparagraph (B), by striking ‘‘cal-
endar year 2001’’ and inserting ‘‘calendar year 
2023’’. 
(b) CONFORMING AMENDMENT.—Section 62(a)(17) 
of such Code is amended to read as follows: 
‘‘(17) EDUCATION LOAN PAYMENTS.—The de-
duction allowed by section 221.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
Æ 
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