H.R. 3285 — Student Loan Marriage Penalty Elimination Act of 2025

This section revises the student loan interest deduction by replacing the modified adjusted gross income (MAGI) phaseout with a $2,500 limit on deductible interest per individual who incurred the indebtedness (previously $2,500 total per tax return). (Thus, married taxpayers filing jointly may deduct up to $5,000 if each spouse has qualifying loan interest.) The changes apply to taxable years beginning after December 31, 2024.