Assemblyman Angelo Santabarbara is co-sponsoring legislation in the state Assembly to establish a personal income tax deduction for student loan payments (A.5724). The bill would allow taxpayers to use up to $5,000 per year in pre-tax dollars to repay student loans.

“As both a parent and proud SUNY graduate, I know that our public colleges and universities offer a world-class education that helps students achieve their potential,” Assemblyman Santabarbara said. “But soaring inflation and student loan debt are making it harder for New Yorkers to achieve their higher education dreams. This bill will help our graduates overcome the burden of student debt and help ensure a college education remains in reach for middle-class families.”

According to The Institute for College Access & Success, New York students had an average debt of more than $30,951 in 2020, and some 54% of that year’s class graduated with student loan debt. The average debt students held in our state was the 16th highest in the country in 2020.

The income tax deduction would apply to student loan debt a taxpayer has incurred on behalf of themselves, their spouse or a dependent that’s not already covered by federal tax deductions and credits. If the bill is signed into law, the deduction will apply to taxable years beginning after January 1, 2022.