[Congressional Record Volume 141, Number 47 (Tuesday, March 14, 1995)]
[Extensions of Remarks]
[Page E592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


       INTRODUCTION OF THE STUDENT LOAN AFFORDABILITY ACT OF 1995

                                 ______


                        HON. PATRICK J. KENNEDY

                            of rhode island

                    in the house of representatives

                         Tuesday, March 14, 1995
  Mr. KENNEDY of Rhode Island. Mr. Speaker, I rise today to announce 
the introduction of the Student Loan Affordability Act of 1995. Many of 
my colleagues already agree that the best way to ensure the future 
prosperity of America is to empower our students to meet the demand for 
the high skill high wage jobs of the 21st century. Post-secondary 
education is an essential component in developing the skills necessary 
to be competitive in today's global markets. Unfortunately, with the 
costs of post-secondary education dramatically rising the number of 
middle class families who can afford to send their children to college 
is falling.
  The Student Loan Affordability Act will offer middle income families 
the relief they need, and empower them to engage in the most important 
of tasks: sending their children off to college. The proposal will 
establish a tax deduction for the interest payments on student loans, 
just like that provided for interest on mortgages. As a result of this 
legislation, students and their families will be able to reduce the 
costs of their education.
  Mr. Speaker, I sincerely hope that this bill is supported by my 
colleagues on both sides of the aisle. The education of our students 
should not be a battleground for partisan politics but a source of 
pride and consensus that we may all support. We must invest in our 
children's education today if we are going to be competitive in 
international markets tomorrow.
  I encourage all my colleagues to support this legislation.
  Mr. Speaker, I ask that a copy of the legislation be printed in the 
Record.
                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Student Loan Affordability 
     Act of 1995''.

     SEC. 2. DEDUCTION FOR HIGHER EDUCATION EXPENSES.

       (a) Deduction Allowed.--Part VII of subchapter B of chapter 
     1 of the Internal Revenue Code of 1986 (relating to 
     additional itemized deductions for individuals) is amended by 
     redesignating section 220 as section 221 and by inserting 
     after section 219 the following new section:

     ``SEC. 220. INTEREST ON STUDENT LOANS.

       ``(a) Allowance of Deduction.--In the case of an 
     individual, there shall be allowed as a deduction an amount 
     equal to the interest on qualified higher education loans 
     paid by the taxpayer during the taxable year.
       ``(b) Qualified Higher Education Loan.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified higher education 
     loan' means a loan which--
       ``(A) is made to a student to meet the student's cost of 
     attendance at an institution of higher education;
       ``(B)(i) is made, insured, or guaranteed by the Federal 
     Government;
       ``(ii) is made by a State or a political subdivision of a 
     State;
       ``(iii) is made from the proceeds of a qualified student 
     loan bond under section 144(b); or
       ``(iv) is made by an institution of higher education (as 
     defined in section 1201(a) of the Higher Education Act of 
     1965 (20 U.S.C. 1141(a))); and
       ``(C) in combination with all other financial assistance 
     awarded to (or on behalf of) such student to meet such cost 
     of attendance, does not exceed such cost of attendance for 
     the academic year for which such loan is made.
       ``(2) Cost of attendance.--The term `cost of attendance' 
     has the meaning given such term by section 472 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087ll).
       ``(3) Institution of higher education.--Unless stated 
     otherwise, the term `institution of higher education' means 
     an institution which--
       ``(A) is described in section 481 of the Higher Education 
     Act of 1965 (20 U.S.C. 1088), and
       ``(b) is eligible to participate in programs under title IV 
     of such Act.
       ``(c) No double benefit.--No deduction shall be allowed 
     under subsection (a) for interest on qualified higher 
     education loans with respect to which a deduction is allowed 
     under any other provision of this chapter.
       ``(d) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section, including regulations requiring recordkeeping 
     and information reporting.''
       (b) Deduction Allowed in Computing Adjusted Gross Income.--
     Section 62(a) of such Code is amended by inserting after 
     paragraph (15) the following new paragraph:
       ``(16) Interest on student loans.--The deduction allowed by 
     section 220.''
       (c) Conforming Amendment.--The table of sections for part 
     VII of subchapter B of chapter 1 of such Code is amended by 
     striking the item relating to section 220 and inserting:

``Sec. 220. Interest on student loans.
``Sec. 221. Cross reference.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.
     

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