Student Loan Marriage Penalty Elimination Act of 2025

The Student Loan Marriage Penalty Elimination Act of 2025 would change how the student loan interest deduction works for married couples. Under current law, the deduction limit is applied to the tax return as a whole (effectively a $2,500 cap for the couple). This bill would rewrite the rule so that each spouse can claim up to $2,500 of qualified student loan interest on their own return, potentially allowing up to $5,000 total deduction for a married couple if both spouses have qualifying interest. It also makes minor conforming edits to the statute to reflect the new per-spouse limitation and to ensure no double-deduction. The changes would take effect for taxable years beginning after December 31, 2024.