[Congressional Record Volume 143, Number 12 (Tuesday, February 4, 1997)]
[Extensions of Remarks]
[Page E150]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        INTRODUCTION OF THE EDUCATION AFFORDABILITY ACT OF 1997

                                 ______
                                 

                          HON. DAVID E. PRICE

                           of north carolina

                    in the house of representatives

                       Tuesday, February 4, 1997

  Mr. PRICE of North Carolina. Mr. Speaker, today, I am introducing the 
Education Affordability Act, together with my North Carolina colleague 
and fellow educator Bob Etheridge. This legislation is designed to make 
education more accessible and affordable for working Americans and to 
give our young people the training that most new, good jobs require. 
Our bill would restore the tax deduction for student loan interest and 
the full tax exemption for scholarships and fellowships. In addition, 
it would permit penalty free, withdrawals from individual retirement 
accounts to pay for higher education expenses.
  In the last decade, the number of American students borrowing money 
for higher education has doubled. The average cost of attendance at a 
public college has increased 27 percent over the past decade while the 
cost of private college has increased over 40 percent. It is not 
unusual today for a working family to spend over 25 percent of their 
income helping their child through college. Many of this Nation's 
talented young people--young people who are the future of this 
country--are unable to attend college because of the financial 
hardship.
  Our legislation would take significant steps toward removing some of 
these barriers to higher education. First, it would restore the pre-
1986 tax laws governing student loans. Instead of penalizing young 
people who are gifted and fortunate enough to earn scholarships and 
fellowships by taxing this money, our bill would make these resources 
tax exempt. Students and their families who need to borrow to pay the 
costs of education would be able to deduct the interest on their loans. 
Finally, this bill would eliminate the 10-percent penalty on 
withdrawals from IRA's for higher education expenses, allowing students 
additional access to resources for their education.
  Accessible and affordable higher education is essential to this 
Nation's ability to compete in the global market. In order to remain at 
the forefront of this growing worldwide economy, we need to ensure that 
our children have access to affordable education beyond high school. 
Passage of this bill would help to bring higher education opportunities 
to every interested individual. It is an investment in the future of 
our young people and our country. I urge my colleagues to join us by 
cosponsoring the Education Affordability Act.

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