U.S. Congressman Kenny Marchant (TX-24) has introduced H.R. 3623, the Fairness and Opportunities for Married Households with Student Loans Act. The bill would end the marriage penalty in the student loan interest tax deduction by raising the cap on this deduction from $2,500 to $5,000 for married couples filing jointly.
Marchant issued the following statement announcing the bill’s introduction:
“Student loan debt is a crushing financial burden that is making it more difficult for young Americans to build a secure and successful middle class life. This is both a personal hardship and a national economic issue because it can discourage Americans from starting a family, becoming homeowners, and saving for retirement. Making matters worse is the marriage penalty in the student loan interest deduction. That’s why I have introduced the Fairness and Opportunities for Married Households with Student Loans Act.
“Currently, an individual can deduct up to $2,500 in interest paid on his or her student loans, but this cap doesn’t increase for married couples filing jointly. As a result, married couples are only eligible for a $2,500 deduction even if both spouses have their own individual academic debts. This is not fair. A large amount of one’s student loan debt does not disappear upon getting married, and neither should the amount available in much-needed student loan interest tax relief.
“Raising the cap to $5,000 for married couples with student loan debt makes equitable sense and it provides stronger incentives toward higher education, marriage, and financial independence. With student loan debt putting increasing pressure on our economy, let’s stop penalizing married households and start helping young American families build a stronger future.”
The legislative text of the Fairness and Opportunities for Married Households with Student Loans Act can be found here.
To read a one-page summary of the bill, please click here.