Student Loans: Republicans Back Plan to Give Some Borrowers Extra Money

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Source: Newsweek

Published May 09, 2025 at 5:19 PM EDT


A Republican congressman is leading a new bipartisan bill in the House of Representatives that would give married student loan borrowers a larger tax deduction on their loans.

Why It Matters

More than 42 million Americans have student loan debt, which has been a sticking point between Democrats and Republicans in recent years. Former President Joe Biden tried to forgive student loan debt during his time in office, arguing that Americans seeking an education are unfairly punished with decades of debt if they do not come from wealthy families who can afford tuition, but those efforts faced myriad legal setbacks.

Critics, on the other hand, have argued student loan forgiveness is unfair to those Americans who have already paid off their debt. The Student Loan Marriage Penalty Elimination Act, a bipartisan bill introduced by GOP Representative Glenn Grothman of Wisconsin, could make it easier for some borrowers who are married to pay off that debt.

What to Know

Grothman's effort with the bill is joined by fellow Republicans, including Representatives Mary Miller of Illinois, Andrew Clyde of Georgia, Rich McCormick of Georgia, David Rouzer of North Carolina and Michael Rulli of Ohio. Democratic Representatives Suzan DelBene of Washington, Danny K. Davis of Illinois, John Larson of Connecticut and Kevin Mullin of California have also signed on in support. Currently, student loan borrowers are eligible for a $2,500 tax deduction; but married couples who file their taxes together may only take one deduction, even if both have student loans that would allow them to qualify for it. The bill would allow married couples filing a joint tax return to apply the deduction to each spouse, so they'll receive a $5,000 deduction in total, Grothman's office wrote in a statement.

Read more: https://www.newsweek.com/student-loans-republican-joint-tax-deduction-bill-2070454