Student Loan Marriage Penalty Elimination Act of 2026

The Student Loan Marriage Penalty Elimination Act of 2026 aims to change how the federal government handles tax deductions for student loan interest. Under current law, individuals can deduct up to $2,500 of the interest they pay on student loans from their taxable income. However, when two people with student loans get married and file their taxes jointly, they are still limited to a single $2,500 deduction for the entire household. This bill proposes to eliminate this "marriage penalty" by allowing each spouse to claim the deduction separately.

If enacted, the legislation would effectively double the maximum deduction for married couples to $5,000, provided both individuals have eligible student loan interest payments. The bill seeks to ensure that couples are not financially disadvantaged by their marital status when managing their education debt. Supporters of the measure argue that the current cap creates an unfair burden on families and that increasing the deduction would help married borrowers achieve other financial goals, such as buying a home or starting a business.