109 HR 5098 IH: College Debt Alleviation Act of 2006 U.S. House of Representatives 2006-04-05 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5098 IN THE HOUSE OF REPRESENTATIVES April 5, 2006 Mr. Meehan introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to extend and expand the deduction for tuition and related expenses for higher education and to reduce the maximum interest rate allowable on student loans.

1.

Short title

This Act may be cited as the College Debt Alleviation Act of 2006.

2.

Deduction for qualified tuition and related expenses

(a)

Extension

Subsection (e) of section 222 of the Internal Revenue Code of 1986 (relating to termination) is amended by striking December 31, 2005 and inserting December 31, 2010. (b)

Increase in amount allowed as deduction

Subsection (b) of section 222 of such Code (relating to dollar limitations) is amended to read as follows: (b)

Dollar limitations

(1)

In general

The amount allowed as a deduction under subsection (a) with respect to the taxpayer for any taxable year shall not exceed the applicable dollar limit. (2)

Applicable dollar limit

The applicable dollar amount shall be equal to— (A)in the case of a taxpayer whose adjusted gross income for the taxable year does not exceed $80,000 ($160,000 in the case of a joint return), $8,000, and (B)in the case of any other taxpayer, zero. (3)

Adjusted gross income

For purposes of paragraph (2), adjusted gross income shall be determined— (A)without regard to this section and sections 199, 911, 931, and 933, and (B)after application of sections 86, 135, 137, 219, 221, and 469.. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

3.

Reduction of student loan interest rates

(a)

FFEEL Loans

Section 427A(l) of the Higher Education Act of 1965 (20 U.S.C. 1077a(l)) is amended— (1)in paragraph (2), by striking 8.5 percent and inserting 6.8 percent; and (2)in paragraph (3)(B), by striking 8.25 percent and inserting 6.8 percent. (b)

Direct Loans

Section 455(b)(7) of such Act (20 U.S.C. 1087e(b)(7)) is amended— (1)in subparagraph (B), by striking 7.9 percent and inserting 6.8 percent; and (2)in subparagraph (C)(ii), by striking 8.25 percent and inserting 6.8 percent.