[Congressional Record Volume 143, Number 64 (Thursday, May 15, 1997)]
[Extensions of Remarks]
[Page E940]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               HIGHER EDUCATION ACCESS AND AFFORDABILITY

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                         HON. NANCY L. JOHNSON

                             of connecticut

                    in the house of representatives

                         Thursday, May 15, 1997

  Mrs. JOHNSON of Connecticut. Mr. Speaker, in proposing the HOPE 
scholarship, President Clinton has, to his great credit, identified an 
issue--college affordability--that is keeping a number of lower- and 
middle-income Americans awake at night. In the coming weeks, it will 
fall to the tax-writing committees, working within the framework of the 
budget, to determine just what sort of tax breaks we can provide for 
tuition for higher education.
  In addition to budgetary constraints, we must be sensitive to the 
potentially inflationary impact of the provisions we enact. A few short 
years ago, we came very close to overhauling one-seventh of the 
Nation's economy partly in response to an alarming rate of medical 
inflation. Higher education costs are rising twice as fast as health 
care costs. I raise this as a note of caution, not as an excuse for 
inaction. We need to help families cope with these costs.
  While there is much work to be done, there are several proposals on 
which I believe all of us--Republicans and Democrats alike--can agree 
as a starting point for building a consensus on a broader package. 
Today I am introducing the Higher Education Access and Affordability 
Act of 1997.
  The Higher Education Access and Affordability Act would:
  Make the payout from State-sponsored, prepaid tuition plans 
excludable from income;
  Make the section 127 exclusion for employer-provided tuition 
assistance permanent;
  Provide an above-the-line deduction for student loan interest;
  Allow tax- and penalty-free IRA withdrawals for higher education 
expenses;
  Allow nondeductible contributions of up to $1,500 per child per year 
into higher education savings accounts. The inside buildup would not be 
taxed. Distributions would not be taxed if the money were used for 
postsecondary tuition and/or expenses. Anyone could contribute to the 
account on a child's behalf--for instance, grandparents, aunts and 
uncles--but the account, not the individual contribution, would be 
capped at $1,500 per year.
  Mr. Speaker, this package is not a panacea, but it provides a solid 
starting point. I look forward to working with my colleagues in the 
weeks and months ahead to develop a broad, balanced public policy 
response to the challenge of college affordability.

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