II 110th CONGRESS 1st Session S. 2371 IN THE SENATE OF THE UNITED STATES November 15, 2007 Mr. Kennedy introduced the following bill; which was read twice, considered, read the third time, and passed A BILL To amend the Higher Education Act of 1965 to make technical corrections.

1.

Definition of untaxed income and benefits

(a)

Amendment

Section 480(b) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(b)) is amended by striking paragraph (2) and inserting the following: (2)The term untaxed income and benefits shall not include— (A)the amount of additional child tax credit claimed for Federal income tax purposes; (B)welfare benefits, including assistance under a State program funded under part A of title IV of the Social Security Act and aid to dependent children; (C)the amount of earned income credit claimed for Federal income tax purposes; (D)the amount of credit for Federal tax on special fuels claimed for Federal income tax purposes; (E)the amount of foreign income excluded for purposes of Federal income taxes; or (F)untaxed social security benefits. . (b)

Effective date

This section and the amendment made by this section shall take effect on July 1, 2009.

2.

Income-based repayment for married borrowers filing separately

Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e) is amended by adding at the end the following: (d)

Special rule for married borrowers filing separately

In the case of a married borrower who files a separate Federal income tax return, the Secretary shall calculate the amount of the borrower's income-based repayment under this section solely on the basis of the borrower's student loan debt and adjusted gross income. .