Tax breaks for paying off your student loans

Establishes gross income tax credit and corporation business tax credit for student loan payments.

Introduced· 2026-01-13

Who's it for

Who's it for: Everyday People

What it means for you

9/10Helps you

Good for everyday people ·

Plain‑English summary, cross‑checked against the official bill text.

This bill would lower your state taxes if you pay off student loans or if your boss helps pay them for you.

Our take

What we think, in plain words.

Student debt is a huge burden for many workers. This bill would offer a real reward for living and working in New Jersey. If you make payments on your student loans, you would get a tax credit to lower your state tax bill. It would also give businesses a tax break if they help pay off their workers' loans. This is a clear win for regular people trying to get out of debt.

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The facts

What the bill actually says, no spin.

You would get a state tax credit for the student loan payments you make during the year.
The tax break is capped based on the average cost of going to a public college in the state.
If you have a degree in science, technology, engineering, or math, you could get the extra credit back as a cash tax refund.
Employers would get their own tax break if they make loan payments directly for their workers.