SACRAMENTO – Assemblymember Wallis is proud to announce his bill, Assembly Bill 2312, has successfully passed out of the Revenue and Taxation Committee. This bill proposes an impactful change to state income tax deductions, allowing Californians to deduct 100% of the interest paid on student loans, irrespective of whether they itemize deductions.
AB 2312 addresses the severe financial strain many recent graduates face as they navigate the burdens of student debt. By making student loan interest fully deductible, this legislation aims to alleviate some of the economic pressures on Californians who are already struggling with the high costs of higher education and the affordability crisis in California.
Assemblymember Wallis commented on the bill’s progress, saying, “California’s affordability crisis is real, with student loans playing a major role. By making student loan interest fully deductible, we’re not just assisting students and families; we’re also bolstering our economy. This bill will enable thousands to manage their finances better, easing the burden of basic expenses and even making it possible to save for a home.”
As student debt continues to be a pressing issue for many in the state, AB 2312 promises to bring much-needed relief, helping to ensure that higher education remains a gateway to opportunity rather than a financial burden.
With the passage of AB 2312 from the Revenue and Taxation Committee, the bill will continue through the legislative process and head next to the Assembly Appropriations Committee.
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