I 

109TH CONGRESS 

2D SESSION H. R. 5098 

To amend the Internal Revenue Code of 1986 to extend and expand the 

deduction for tuition and related expenses for higher education and 

to reduce the maximum interest rate allowable on student loans. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 5, 2006 

Mr. MEEHAN introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

and expand the deduction for tuition and related expenses for higher education and to reduce the maximum 

interest rate allowable on student loans. 

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 ‘‘College Debt Allevi5 ation Act of 2006’’. 


cprice-sewell on PROD1PC66 with BILLS
2 

•HR 5098 IH 

1 SEC. 2. DEDUCTION FOR QUALIFIED TUITION AND RE2 LATED EXPENSES. 

3 (a) EXTENSION.—Subsection (e) of section 222 of 

4 the Internal Revenue Code of 1986 (relating to termi5 nation) is amended by striking ‘‘December 31, 2005’’ and 

6 inserting ‘‘December 31, 2010’’. 

7 (b) INCREASE IN AMOUNT ALLOWED AS DEDUC8 TION.—Subsection (b) of section 222 of such Code (relat9 ing to dollar limitations) is amended to read as follows: 

10 ‘‘(b) DOLLAR LIMITATIONS.— 

11 ‘‘(1) IN GENERAL.—The amount allowed as a 

12 deduction under subsection (a) with respect to the 

13 taxpayer for any taxable year shall not exceed the 

14 applicable dollar limit. 

15 ‘‘(2) APPLICABLE DOLLAR LIMIT.—The applica16 ble dollar amount shall be equal to— 

17 ‘‘(A) in the case of a taxpayer whose ad18 justed gross income for the taxable year does 

19 not exceed $80,000 ($160,000 in the case of a 

20 joint return), $8,000, and 

21 ‘‘(B) in the case of any other taxpayer, 

22 zero. 

23 ‘‘(3) ADJUSTED GROSS INCOME.—For purposes 

24 of paragraph (2), adjusted gross income shall be de25 termined— 


cprice-sewell on PROD1PC66 with BILLS
3 

•HR 5098 IH 

1 ‘‘(A) without regard to this section and 

2 sections 199, 911, 931, and 933, and 

3 ‘‘(B) after application of sections 86, 135, 

4 137, 219, 221, and 469.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2005. 

8 SEC. 3. REDUCTION OF STUDENT LOAN INTEREST RATES. 

9 (a) FFEEL LOANS.—Section 427A(l) of the Higher 

10 Education Act of 1965 (20 U.S.C. 1077a(l)) is amended— 

11 (1) in paragraph (2), by striking ‘‘8.5 percent’’ 

12 and inserting ‘‘6.8 percent’’; and 

13 (2) in paragraph (3)(B), by striking ‘‘8.25 per14 cent’’ and inserting ‘‘6.8 percent’’. 

15 (b) DIRECT LOANS.—Section 455(b)(7) of such Act 

16 (20 U.S.C. 1087e(b)(7)) is amended— 

17 (1) in subparagraph (B), by striking ‘‘7.9 per18 cent’’ and inserting ‘‘6.8 percent’’; and 

19 (2) in subparagraph (C)(ii), by striking ‘‘8.25 

20 percent’’ and inserting ‘‘6.8 percent’’. 

Æ 


cprice-sewell on PROD1PC66 with BILLS