Student Loan Deduction Act of 2025
Summary
The Student Loan Deduction Act of 2025 aims to amend the Food and Nutrition Act of 2008. It proposes allowing deductions for student loan payments from income when determining eligibility for food assistance programs. This bill was introduced in the Senate and referred to the Committee on Agriculture, Nutrition, and Forestry.
Expected Effects
The primary effect of this act would be to increase the number of households eligible for food assistance. This is achieved by reducing their countable income through a deduction for student loan payments. The change would take effect 180 days after the enactment of the bill.
Potential Benefits
- Increased access to food assistance for households with student loan debt.
- Potential reduction in food insecurity among student loan borrowers.
- More disposable income for low-income households to address other needs.
- Simplification of the certification/recertification process for food assistance programs.
- May incentivize enrollment in income-driven repayment plans for student loans.
Potential Disadvantages
- Potential strain on the budget of food assistance programs.
- Possible increase in administrative costs to implement the deduction.
- Risk of fraud or abuse in claiming student loan payment deductions.
- May disproportionately benefit certain types of student loan borrowers.
- Potential for unintended consequences on other aspects of food assistance eligibility.
Most Disadvantaged Areas:
Constitutional Alignment
The proposed act appears to align with the Constitution's general welfare clause (Preamble). This clause allows Congress to enact laws that promote the well-being of the population. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).