I 
108TH CONGRESS 
1ST SESSION H. R. 2150
To amend the Internal Revenue Code of 1986 to make the Hope and Lifetime 
Learning Credits refundable, and to allow taxpayers to obtain short-
term student loans by using the future refund of such credits as collateral 
for the loans. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 19, 2003
Mr. ANDREWS 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 make 
the Hope and Lifetime Learning Credits refundable, and 
to allow taxpayers to obtain short-term student loans 
by using the future refund of such credits as collateral 
for the loans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. HOPE AND LIFETIME LEARNING CREDITS TO 
BE REFUNDABLE. 
(a) CREDIT TO BE REFUNDABLE.—Section 25A of 
the Internal Revenue Code of 1986 (relating to Hope and 
Lifetime Learning credits) is hereby moved to subpart C
of part IV of subchapter A of chapter 1 of such Code (re-
lating to refundable credits) and inserted after section 35. 
(b) TECHNICAL AMENDMENTS.—
(1) Section 36 of such Code is redesignated as 
section 37. 
(2) Section 25A of such Code (as moved by 
subsection (a)) is redesignated as section 36. 
(3) Paragraph (1) of section 36(a) of such Code 
(as redesignated by paragraph (2)) is amended by 
striking ‘‘this chapter’’ and inserting ‘‘this subtitle’’. 
(4) Subparagraph (B) of section 72(t)(7) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 36(g)(2)’’. 
(5) Subparagraph (A) of section 135(d)(2) of 
such Code is amended by striking ‘‘section 25A’’ and 
inserting ‘‘section 36’’. 
(6) Section 221(e) of such Code is amended—
(A) in paragraph (2)(B), by striking ‘‘sec-
tion 
25A(g)(2)’’ 
and 
inserting 
‘‘section 
36(g)(2)’’ and by striking ‘‘section 25A(f)(2)’’ 
and inserting ‘‘section 36(f)(2)’’, and 
(B) in paragraph (3), by striking ‘‘section 
25A(b)(3)’’ and inserting ‘‘section 36(b)(3)’’.
(7) Clause (i) of section 529(e)(3)(B) of such 
Code is amended by striking ‘‘section 25A(b)(3)’’ 
and inserting ‘‘section 36(b)(3)’’. 
(8) Subparagraph (A) of section 530(b)(2) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 36(g)(2)’’. 
(9) Clause (iii) of section 530(d)(4)(B) of such 
Code is amended by striking ‘‘section 25A(g)(2)’’ 
and inserting ‘‘section 36(g)(2)’’. 
(10) Subsection (e) of section 6050S of such 
Code is amended by striking ‘‘section 25A’’ and in-
serting ‘‘section 36’’. 
(11) Subparagraph (J) of section 6213(g)(2) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(1)’’ and inserting ‘‘section 36(g)(1)’’. 
(12) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
36’’ after ‘‘section 35’’. 
(13) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 36 
and inserting the following:
‘‘Sec. 36. Hope and Lifetime Learning credits. 
‘‘Sec. 37. Overpayments of tax.’’
(14) The table of sections for subpart A of such 
part IV is amended by striking the item relating to 
section 25A. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to taxable years beginning after 
December 31, 2003. 
SEC. 2. USE OF REFUNDS OF HOPE AND LIFETIME LEARN-
ING CREDITS AS COLLATERAL FOR SHORT-
TERM STUDENT LOANS. 
(a) IN GENERAL.—Section 36 of the Internal Rev-
enue Code of 1986 (as redesignated by section 1) is 
amended by redesignating subsection (i) as subsection (j) 
and by inserting after subsection (h) the following new 
section: 
‘‘(i) TUITION TAX CREDIT ASSIGNMENT LOANS.—
‘‘(1) IN GENERAL.—Any eligible educational in-
stitution may provide to a taxpayer described in 
paragraph (3) a tuition tax credit assignment loan. 
‘‘(2) 
TUITION
TAX
CREDIT
ASSIGNMENT 
LOAN.—For purposes of this subsection, the term 
‘tuition tax credit assignment loan’ means a loan 
provided to the taxpayer by the eligible educational 
institution in return for which the taxpayer agrees 
to authorize the Internal Revenue Service to dis-
burse the loan amount directly to the lender out of