Fond Du Lac Times

Representative Glenn Grothman, a Republican from Wisconsin, has reintroduced the Student Loan Marriage Penalty Elimination Act. The bill, supported by Representatives Suzan DelBene (D-WA), Mary Miller (R-IL), and Danny K. Davis (D-IL), aims to amend the tax code to allow student loan interest to be tax-deductible for each spouse independently. This move seeks to eliminate what Grothman describes as a "government-imposed punishment for marriage" that currently affects married couples with student loans.

The proposed legislation has received endorsements from organizations such as the National Taxpayers Union (NTU), the Family Research Council, and Third Way. It is also backed by six bipartisan cosponsors: Andrew Clyde (R-GA), John Larson (D-CT), Rich McCormick (R-GA), Kevin Mullin (D-CA), David Rouzer (R-NC), and Michael Rulli (R-OH).

Grothman explained his motivation for reintroducing the bill: “The federal government has a troubling record of policies that discourage marriage, and the student loan interest deduction is no exception.” He emphasized that under current law, unmarried individuals can each receive up to a $2,500 tax deduction on their student loans, but married couples filing jointly are capped at $2,500 collectively. The new bill would allow each spouse in a marriage to claim their full $2,500 deduction.

Danny K. Davis highlighted the financial strain faced by Americans due to significant student loan debt: “Higher education is a critical path to economic security,” he said. He expressed pride in supporting legislation that could potentially double the student loan interest deduction for married couples filing jointly.

Mary Miller noted that young couples face many financial challenges and argued that government policy should not exacerbate these issues: "Rep. Grothman's Student Loan Marriage Penalty Elimination Act brings much-needed fairness to the current tax system."

Suzan DelBene pointed out how current penalties could deter marriages: “Student loan debt should not prevent couples from getting married." She described the act as a practical solution to ease financial pressure on couples.

Thomas Aiello of NTU expressed support for ending what he sees as an unfair burden imposed by current tax laws: “National Taxpayers Union is proud to once again endorse the Student Loan Marriage Penalty Elimination Act.”

The Family Research Council also voiced its approval through a statement emphasizing marriage's foundational role in society.

Under existing regulations, interest on both public and private student loans is deductible up to $2,500; however, this cap applies per couple rather than per individual when filing jointly. The proposed act would change this by allowing each spouse their own $2,500 limit when filing together—potentially offering up to $5,000 in deductions combined.

Passing this legislation would remove what supporters see as an unjust penalty within tax law while alleviating some financial burdens associated with repaying educational debts.