[Congressional Record Volume 144, Number 54 (Tuesday, May 5, 1998)]
[Senate]
[Page S4373]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 HIGHER EDUCATION REPORTING RELIEF ACT

 Mr. McCAIN. Mr. President, I am proud to have become a 
cosponsor of S. 1724, the Higher Education Reporting Relief Act. As 
many of my colleagues know, this bill would repeal the reporting 
requirements imposed on colleges and universities when Congress enacted 
the HOPE scholarships and the Lifetime Learning Tax credit last year.
  The Taxpayer Relief Act of 1997 contained many important provisions 
for American families, particularly in the area of education. As a part 
of this bill, Congress created several new initiatives to make college 
and higher education more affordable for students throughout our 
country. The Hope and Opportunity for Postsecondary Education (HOPE) 
scholarship provides students with a 100% tax credit for up to $1,000 
of their tuition costs for higher education and a 50% credit for the 
next $1,000 spent on their tuition. This credit can be claimed by the 
student, their spouse, or parents if they are still a dependent. 
Another program created by Congress to ease the financial burden of 
higher education for our working families is the Lifetime Learning Tax 
Credit.
  Both of these programs are helping make college and postsecondary 
education more affordable. Unfortunately, when Congress created these 
new education programs, we inadvertently levied very costly and 
burdensome reporting requirements on our educational institutions. 
Beginning in the 1998 tax year, schools are required to compile and 
issue annual reports on their students for the Internal Revenue 
Services. Under the new law, schools are now responsible for providing 
detailed information on all their students, including name, address, 
Social Security number, attendance records, academic information, 
tuition data, along with the amount of qualified student aid.
  Preliminary studies indicate that the cost to our nation's 
universities and colleges to comply with the new reporting requirements 
will range from $125 million to $150 million for just the first year. 
The three colleges in my home state of Arizona expect that this new 
requirement will cost them approximately $400,000 to begin the 
reporting system, which will turn into an annual expense of $200,000 
for each of the institutions.
  This reporting requirement is costly and counterproductive. At a time 
when Congress and the Federal government are trying to make college 
affordable, contain costs, and make higher education more accessible to 
millions of students, we are subjecting schools to excessive and 
unnecessary reporting requirements. According to the Commission on the 
Cost of Higher Education, a primary factor contributing to escalating 
tuition costs is excessive government regulation and reporting 
requirements.
  This is why I am cosponsoring Senator Collins' bill, the Higher 
Education Reporting Relief Act, which repeals the requirement for 
schools to report personal information on their students to the IRS. 
Instead, the new HOPE scholarships and Lifetime Learning Tax Credit 
will be treated like all other existing tax credits. The individual 
taxpayer will be responsible for providing the IRS with the pertinent 
information on their tax returns and maintaining appropriate records to 
substantiate their claims.
  This important piece of legislation prevents the limited resources of 
our colleges and universities from being wasted on unneccesary 
administrative costs and allows them to focus on our students and their 
education.

                          ____________________