1.This Act may be cited as the
Improving Access to Higher Education
Act of 2007
.
2.Increase in Federal
Pell Grants
(a)Section 401 of the Higher Education Act of
1965 (20 U.S.C. 1070a) is amended—
(1)in subsection
(a)(1), by striking 2004
and inserting 2008
;
and
(2)in subsection
(b)—
(A)in subparagraph
(A) of paragraph (2), by striking shall be—
and all that follows
through that year.
and inserting shall be $5,100 for
academic year 2007–2008, less an amount equal to the amount determined to be
the expected family contribution with respect to that student for that
year.
; and
(B)in paragraph (5),
by striking $400
each place the term appears and inserting
$500
.
(b)
(1)There are authorized to be appropriated, and there are
appropriated, to carry out paragraph (2) (in addition to any other amounts
appropriated to carry out section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) and out of any money in the Treasury not otherwise appropriated)
$4,331,000,000 for academic year 2007–2008.
(2)Increase in
Federal Pell GrantsThe funds made available pursuant to
paragraph (1) shall be used to increase the amount of the maximum Federal Pell
Grant under section 401 of the Higher Education Act of 1965 for which funds are
appropriated under appropriations Acts for fiscal year 2007 by $1,050 for award
year 2007–2008.
(c)The amendments made by subsection (a)(2)(B) shall take
effect on July 1, 2007.
3.Expansion of deduction
for interest on education loans
(a)
(1)Paragraph (1) of section 221(b) of the Internal Revenue
Code of 1986 (relating to maximum deduction) is amended to read as
follows:
(1)Except as provided in paragraph (2), the deduction
allowed by subsection (a) for the taxable year shall not exceed
$3,750.
.
(2)Subclause (II) of section 221(b)(2)(i) of such Code is
amended by striking $50,000 ($100,000
and inserting
$75,000 ($150,000
.
(b)Section 221(f)(1) of such Code is amended to read as
follows:
(1)In the case of a taxable year beginning after 2007, the
$75,000 and $150,000 amounts in subsection (b)(2) shall each be increased by an
amount equal to—
(A)such dollar amount,
multiplied by
(B)the cost-of-living
adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting calendar year
2006
for calendar year 1992
in subparagraph (B)
thereof.
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.
(d)Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall
not apply to section 412 of such Act (relating to elimination of 60-month limit
and increase in income limitation on student loan interest deduction).
4.Coverdell
education savings accounts
(a)Increase in
allowable contributions
(1)Clause (iii) of section 530(b)(1)(A) of the Internal
Revenue Code of 1986 is amended by striking $2,000
and inserting
$3,000
.
(2)Section 4973(e)(1)(A) of such Code is amended by
striking $2,000
and inserting $3,000
.
(b)Subsection
(h) of section 530 of such Code is amended by striking the period at the end of
the last sentence and inserting , except that reports shall be so filed
and furnished for any calendar year not later than June 30 of the following
year.
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.
(d)Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall
not apply to section 401 of such Act (relating to modifications to education
individual retirement accounts).
5.Repeal of EGTRRA
sunset for employer-provided educational assistanceTitle IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (relating to sunset of provisions of such
Act) shall not apply to section 411 of such Act (relating to extension of
exclusion for employer-provided educational assistance).