I 

108TH CONGRESS 

1ST SESSION H. R. 3465

To amend the Internal Revenue Code of 1986 to repeal the limitations 

on the deduction for interest on education loans and to make the deduction, as amended, permanent. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 6, 2003

Mr. ISRAEL introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to repeal 

the limitations on the deduction for interest on education 

loans and to make the deduction, as amended, permanent.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Reducing Education 

5 Loan Repayment Act of 2003’’. 

6 SEC. 2. FINDINGS; PURPOSE. 

7 (a) FINDINGS.—The Congress finds as follows: 
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1 (1) Working families, because of their high stu2 dent loans, have difficulty saving for their children’s 

3 education. 

4 (2) The average tuition for four years of college 

5 is $15,000 to $32,000. 

6 (3) The average college graduate with student 

7 loan debt begins working with $11,000 to $18,000 

8 of debt. 

9 (4) Education is an American value, and going 

10 to school should be encouraged by American public 

11 policy. 

12 (5) Education benefits not only the educated 

13 person but also the entire community. 

14 (6) Education is important for everyone in the 

15 United States, regardless of income level. 

16 (7) The interest on education loans is the bulk 

17 of student loan payments in the first years after 

18 graduation, which creates great financial hardships 

19 on new graduates. 

20 (8) High debt burdens too often limit a per21 son’s occupational choices. 

22 (9) The mortgage interest deduction encourages 

23 home ownership in America, giving more Americans 

24 a stable investment they can count on for decades. 
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1 (10) Education is another investment that can 

2 be counted to increase earning potential for decades. 

3 (b) PURPOSE.—The purpose of this Act is to equalize 

4 the tax treatment of student loan interest and mortgage 

5 interest. 

6 SEC. 3. REPEAL OF LIMITATIONS ON DEDUCTIONS FOR IN7 TEREST ON EDUCATION LOANS. 

8 (a) IN GENERAL.—Section 221 of the Internal Rev9 enue Code of 1986 (relating to interest on education 

10 loans) is amended—

11 (1) by striking subsections (b) and (f), and 

12 (2) by redesignating subsections (c), (d), and 

13 (e) as subsections (b), (c), and (d), respectively. 

14 (b) DEDUCTION MADE PERMANENT.—Section 901 of 

15 the Economic Growth and Tax Relief Reconciliation Act 

16 of 2001 is amended by adding at the end the following 

17 new subsection: 

18 ‘‘(c) EXCEPTION.—Subsections (a) and (b) shall not 

19 apply with respect to the amendments made by this Act 

20 to section 221 of the Internal Revenue Code of 1986.’’. 

21 (c) CONFORMING AMENDMENT.—Section 6050S(e) 

22 of such Code is amended by striking ‘‘221(d)(1)’’ and in23 serting ‘‘221(c)(1)’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to interest paid after December 

3 31, 2002, in taxable years beginning after such date.

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