[Congressional Record Volume 147, Number 21 (Wednesday, February 14, 2001)]
[House]
[Page H354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1345
 REPEALING THE 5-YEAR LIMITATION ON INTEREST DEDUCTIBILITY FOR STUDENT 
                                 LOANS

  The SPEAKER pro tempore (Mr. Simpson). Under a previous order of the 
House, the gentlewoman from Hawaii (Mrs. Mink) is recognized for 5 
minutes.
  Mrs. MINK of Hawaii. Mr. Speaker, today I rise to re-introduce a bill 
important to all students--H.R.   . In the 105th Congress, we passed 
legislation that allows students to deduct interest paid on student 
loans. We did this to make it easier for all Americans to bear the 
enormous costs of higher education, and I supported this effort whole-
heartedly.
  My bill improves this law by removing the current 60 month limitation 
period for deducting student loan interest. As the law currently 
stands, if your student loan is older than 5 years from when it came 
due, you are not eligible for a tax deduction.
  This limitation needs to be removed. Higher education has become 
increasingly expensive and is creating a financial burden on graduates 
well beyond the first five years of graduation. According to the 
General Accounting Office, the average student loan in 1980 was $518; 
in 1995, it rose to $2,417, an increase of 367%. Tuition at 4-year 
public and private colleges and universities has risen nearly three 
times as much as median household income in the past 15 years. As a 
result, it is becoming harder for students to graduate from college or 
graduate school without the help of student loans.
  Students that graduate with student loans start out a few steps 
behind those without it. It is harder for them to save for emergencies 
or to invest money for their future. It is also harder for them to meet 
day-to-day expenses. This tax deduction will help.
  All interest accrued on student loans should be deductible. Congress 
can send the message that we value higher education and recognize the 
financial responsibility students have made by allowing the student 
loan deduction for the life of the loan.
  This will do two things: It will encourage individuals to go to 
college or graduate school, and it will reduce the cost of an 
education. Mr. Speaker, I believe very strongly that the way to achieve 
the American Dream is through education, and that everyone should have 
this opportunity.
  It is absolutely essential that we continue to invest in our most 
important hope for our children--education. I urge my colleagues to 
support my bill, H.R.   .

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