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S 2717119th CongressIn Committee
Student Loan Deduction Act of 2025
Introduced: Sep 4, 2025
Sponsor: Sen. Welch, Peter [D-VT] (D-Vermont)
Economy & TaxesEducation
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Student Loan Deduction Act of 2025 would amend the Food and Nutrition Act of 2008 to allow SNAP households to deduct their monthly student loan payments from income used to determine eligibility and benefits. The bill defines “student loan” to include both federal Title IV loans and private education loans. Starting 180 days after enactment, households can take a deduction for the amount of monthly payments made by any household member on any household member’s student loan, as long as the payments are not made by a third party. This deduction would reduce a household’s countable income at the time of certification or recertification, potentially increasing SNAP eligibility or benefit levels for households with student debt.
Key Points
- 1Adds a new deduction category in SNAP calculations for student loan payments, covering both federal Title IV loans and private education loans.
- 2The deduction applies to monthly payments made by any household member on any household member’s student loan.
- 3Only applies to expenses not paid by a third party (i.e., if a third party pays the loan, the deduction isn’t available).
- 4Effective 180 days after enactment, at the time of certification or recertification.
- 5There is no stated cap or limit on the amount of the deduction; it reduces countable income based on actual monthly payments.
Impact Areas
Primary group/area affected: SNAP households with student loan debt (federal or private) who pay those loans and file for SNAP benefits.Secondary group/area affected: State SNAP program administrators and agencies responsible for determining eligibility and implementing deductions; potential need to update policies, guidance, and IT systems.Additional impacts: Potential changes in SNAP program costs and benefit calculations; possible effects on households’ budgeting and decision-making related to student loan payments; administrative considerations if third-party payments are involved.
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