[Congressional Record Volume 153, Number 45 (Thursday, March 15, 2007)]
[Extensions of Remarks]
[Page E555]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTRODUCTION OF THE MARRIED STUDENT DEBT RELIEF ACT OF 2007

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                             HON. LEE TERRY

                              of nebraska

                    in the house of representatives

                        Thursday, March 15, 2007

  Mr. TERRY. Madam Speaker, I rise today to introduce the Married 
Student Debt Relief Act of 2007 to end the marriage penalty contained 
in the portion of the tax code allowing for the deduction of student 
loan interest.
  Current tax law discriminates against married couples trying to pay 
down their educational debt while starting careers and families. 
Individual taxpayers are allowed to deduct up to $2,500 in student loan 
interest from their taxes each year. However, once a taxpayer marries, 
they are only allowed to deduct the same amount--$2,500--as a married 
couple, regardless of whether both spouses are paying back individual 
student loans.
  Because the existing tax law limits married couples to the $2,500 
deduction even when both spouses carry student debt and could have each 
taken a $2,500 deduction while single, I am introducing the Married 
Student Debt Relief Act of 2007 to correct this inequity. This 
legislation would double the student loan interest tax deduction to 
$5,000 for married couples who file a joint tax return when both 
spouses hold student debt, ensuring tax law treats students fairly, 
whether they are single or married.
  The average U.S. student graduates with $19,000 in educational debt. 
The government should not make it more difficult for young married 
couples to payoff their debts as quickly as possible to increase their 
quality of life and begin making their dreams come true. I am joined by 
more than 25 bipartisan Members of Congress in introducing this 
legislation today. It is important to help married couples pay down 
their student loans as quickly as possible to support their families 
and futures.
  This problem in the tax code was first brought to my attention by my 
constituent, Michael Currans of Omaha. He wrote to me about the 
inequity, and I drafted legislation shortly thereafter to correct it. 
After learning of the effort, he wrote:

       First off, I'm very pleased that my simple email to 
     Congressman Terry has resulted in such an enthusiastic 
     response. This is the first time I've ever written to my 
     representatives in Congress, and it has definitely helped me 
     see the value of getting involved. I really wish that I had 
     written about this years ago.
       Ever since we were married in 2000 and began filing our 
     joint tax return, my wife and I have struggled to understand 
     the rationale for not allowing married couples to each take 
     advantage of the student loan interest deduction to the same 
     extent as two unmarried individuals. Between us, we had over 
     $70,000 of student loan debt, and while we diligently make 
     all our payments on time, it is frustrating that the 
     principal balances are reduced so slowly. We often discuss 
     how we'd like to make additional payments to try to pay the 
     loans down faster, but now that we've got kids in the 
     picture, daycare expenses, and a house to maintain, extra 
     cash to put toward the student loans seems hard to come 
     by. We find some solace in knowing that we can at least 
     deduct a portion of the interest we pay.
       We are not complaining. The federal student loan programs 
     have been good to us. We've both earned valuable 
     undergraduate degrees, my wife at the University of Northern 
     Iowa, and myself at Loras College in Dubuque, Iowa. Further, 
     student loans allowed us both to attend the excellent law 
     school at the University of Iowa where we met. Without 
     student loans, we would not be where we are today, so even 
     without the benefit of the full student loan interest 
     deduction, our student loans are a positive investment.
       Some might ask why a two-income family with both spouses 
     being attorneys should have any grounds to seek additional 
     relief from income taxes. However, my wife is a public 
     defender representing juvenile delinquents in Douglas County, 
     Nebraska. She is most definitely using her law degree for the 
     public good, earning much less than she might if she chose to 
     pursue private practice. I'm sure for many married lawyer 
     couples, the student loan interest deduction is a nonissue 
     due to the phase-out at higher incomes, but for us, it is 
     still an important deduction. I'm certain the deduction is 
     important to the great many married couples of lesser means 
     paying on student loans for both spouses, especially in cases 
     where one spouse chooses to stay at home with children.
       We've joked on occasion about how we'd have been better off 
     from a tax perspective if we'd just remained unmarried, lived 
     together, and filed separate tax returns until our student 
     loans were paid off. I doubt most couples would actually 
     choose to live that way just for the additional student loan 
     interest deduction. Nonetheless, why should a married couple 
     be treated differently than two individual taxpayers? There 
     is no good reason for this inequity, so I really hope this 
     legislation goes through.
       If I can be of help, please let me know. Thanks to 
     Congressman Terry and his staff for taking up this issue.--
     Mike Currans.

       I am grateful to Mike for bringing this inequity to my 
     attention so we can work in this Congress to correct it. I 
     urge more of my constituents to bring their concerns to my 
     attention, and I encourage every American to communicate 
     their views to their Congressional Representative. Your voice 
     does make a difference.
       Thank you, Madam Speaker. I hope all of my colleagues will 
     join my efforts by cosponsoring this legislation and working 
     to bring it to a vote in the House of Representatives.

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