Assemblyman Angelo Santabarbara announced that he is co-sponsoring new 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 firsthand the value of a quality education,” Assemblyman Santabarbara said. “Working together, colleges, states, and the federal government can all play a role in helping students get through college without the financial burden that weighs them down long after graduation.”

According to The Institute for College Access & Success, New York students had an average debt of more than $31,000 in 2019, and nearly 60% of that year’s class graduated with student loan debt.^[1] The average debt students held in our state was the 16th highest in the country in 2019.

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.

[1] ticas.org/wp-content/uploads/2020/10/classof2019.pdf