I 
111TH CONGRESS 
1ST SESSION H. R. 1954 
To amend the Internal Revenue Code of 1986 to make higher education 
more affordable by providing a full tax deduction for higher education 
expenses and interest on student loans. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2009 
Mr. PAUL (for himself and Mr. MILLER of Florida) 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 
higher education more affordable by providing a full tax 
deduction for higher education expenses and interest on 
student loans. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Make College Afford-
able Act of 2009’’. 
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SEC. 2. DEDUCTION FOR HIGHER EDUCATION EXPENSES. 
(a) DEDUCTION ALLOWED.—Section 221 of the In-
ternal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘SEC. 221. HIGHER EDUCATION EXPENSES. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 
individual, there shall be allowed as a deduction an 
amount equal to the sum of— 
‘‘(1) the qualified higher education expenses, 
plus 
‘‘(2) interest on qualified education loans, 
paid by the taxpayer during the taxable year. 
‘‘(b) QUALIFIED HIGHER EDUCATION EXPENSES.— 
For purposes of this section— 
‘‘(1) QUALIFIED
HIGHER
EDUCATION
EX-
PENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
higher education expenses’ means— 
‘‘(i) tuition and fees charged by an 
educational institution and required for the 
enrollment or attendance of— 
‘‘(I) the taxpayer, 
‘‘(II) the taxpayer’s spouse, 
‘‘(III) any dependent of the tax-
payer with respect to whom the tax-
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payer is allowed a deduction under 
section 151, or 
‘‘(IV) any grandchild of the tax-
payer, 
as an eligible student at an institution of 
higher education, and 
‘‘(ii) reasonable living expenses for 
such an individual while away from home 
and attending such institution. 
‘‘(B) ELIGIBLE COURSES.—Amounts paid 
for qualified higher education expenses of any 
individual shall be taken into account under 
subsection (a) only to the extent such ex-
penses— 
‘‘(i) are attributable to courses of in-
struction for which credit is allowed toward 
a baccalaureate degree by an institution of 
higher education or toward a certificate of 
required course work at a vocational 
school, and 
‘‘(ii) are not attributable to any grad-
uate program of such individual. 
‘‘(C) ELIGIBLE STUDENT.—For purposes 
of subparagraph (A), the term ‘eligible student’ 
means a student who— 
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‘‘(i) meets the requirements of section 
484(a)(1) of the Higher Education Act of 
1965 (20 U.S.C. 1091(a)(1)), as in effect 
on the date of the enactment of this sec-
tion, and 
‘‘(ii) is carrying at least one-half the 
normal full-time work load for the course 
of study the student is pursuing, as deter-
mined by the institution of higher edu-
cation. 
‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ is as de-
fined in section 101 of the Higher Education Act of 
1965 (20 U.S.C. 1001). 
‘‘(c) QUALIFIED EDUCATION LOAN.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified edu-
cation loan’ means a loan which is— 
‘‘(A) made, insured, or guaranteed by the 
Federal Government, 
‘‘(B) made by a State or a political sub-
division of a State, 
‘‘(C) made from the proceeds of a qualified 
student loan bond under section 144(b), or 
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‘‘(D) made by an institution of higher edu-
cation. 
‘‘(2) LIMITATION.—The amount of interest on 
a qualified education loan which is taken into ac-
count under subsection (a)(2) shall not exceed the 
amount which bears the same ratio to such amount 
of interest as— 
‘‘(A) the proceeds from such loan used for 
qualified higher education expenses, bears to 
‘‘(B) the total proceeds from such loan. 
For purposes of the preceding sentence, the term 
‘qualified higher education expenses’ shall be deter-
mined without regard to subsection (c)(1)(A)(i)(IV). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) NO DOUBLE BENEFIT.— 
‘‘(A) IN GENERAL.—No deduction shall be 
allowed under subsection (a) for any expense 
for which a deduction is allowable to the tax-
payer under any other provision of this chapter 
unless the taxpayer irrevocably waives his right 
to the deduction of such expense under such 
other provision. 
‘‘(B) DENIAL OF DEDUCTION IF CREDIT 
ELECTED.—No deduction shall be allowed 
under subsection (a) for a taxable year with re-
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spect to the qualified higher education expenses 
of an individual if the taxpayer elects to have 
section 25A apply with respect to such indi-
vidual for such year. 
‘‘(C) DEPENDENTS.—No deduction shall 
be allowed under subsection (a) to any indi-
vidual with respect to whom a deduction under 
section 151 is allowable to another taxpayer for 
a taxable year beginning in the calendar year in 
which such individual’s taxable year begins. 
‘‘(D) COORDINATION WITH EXCLUSIONS.— 
A deduction shall be allowed under subsection 
(a) for qualified higher education expenses only 
to the extent the amount of such expenses ex-
ceeds the amount excludable under section 135 
or 530(d)(2) for the taxable year. 
‘‘(2) LIMITATION ON TAXABLE YEAR OF DE-
DUCTION.— 
‘‘(A) IN GENERAL.—A deduction shall be 
allowed under subsection (a) for qualified high-
er education expenses for any taxable year only 
to the extent such expenses are in connection 
with enrollment at an institution of higher edu-
cation during the taxable year. 
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‘‘(B) CERTAIN PREPAYMENTS ALLOWED.— 
Subparagraph (A) shall not apply to qualified 
higher education expenses paid during a taxable 
year if such expenses are in connection with an 
academic term beginning during such taxable 
year or during the first 3 months of the next 
taxable year. 
‘‘(3) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS AND VETERANS BENEFITS.—The amount of 
qualified higher education expenses otherwise taken 
into account under subsection (a) or (d)(2) with re-
spect to the education of an individual shall be re-
duced (before the application of subsection (b)) by 
the sum of the amounts received with respect to 
such individual for the taxable year as— 
‘‘(A) a qualified scholarship which under 
section 117 is not includable in gross income, 
‘‘(B) an educational assistance allowance 
under chapter 30, 31, 32, 34, or 35 of title 38, 
United States Code, or 
‘‘(C) a payment (other than a gift, be-
quest, devise, or inheritance within the meaning 
of section 102(a)) for educational expenses, or 
attributable to enrollment at an eligible edu-
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cational institution, which is exempt from in-
come taxation by any law of the United States. 
‘‘(4) NO
DEDUCTION
FOR
MARRIED
INDIVID-
UALS FILING SEPARATE RETURNS.—If the taxpayer 
is a married individual (within the meaning of sec-
tion 7703), this section shall apply only if the tax-
payer and the taxpayer’s spouse file a joint return 
for the taxable year. 
‘‘(5) NONRESIDENT ALIENS.—If the taxpayer is 
a nonresident alien individual for any portion of the 
taxable year, this section shall apply only if such in-
dividual is treated as a resident alien of the United 
States for purposes of this chapter by reason of an 
election under subsection (g) or (h) of section 6013. 
‘‘(6) REGULATIONS.—The Secretary may pre-
scribe such regulations as may be necessary or ap-
propriate to carry out this section, including regula-
tions requiring recordkeeping and information re-
porting.’’. 
(b) DEDUCTION
ALLOWED
IN
COMPUTING
AD-
JUSTED GROSS INCOME.—Paragraph (17) of section 
62(a) of such Code is amended to read as follows: 
‘‘(17) HIGHER
EDUCATION
EXPENSES.—The 
deduction allowed by section 221.’’. 
(c) CONFORMING AMENDMENTS.— 
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(1) Part VII of subchapter B of chapter 1 of 
such Code is amended— 
(A) by striking section 222, and 
(B) in the table of sections for such part 
by striking the item relating to section 222. 
(2) The following sections of such Code are 
each 
amended 
by 
striking 
‘‘222,’’: 
sections 
86(b)(2)(A), 
135(c)(4)(A), 
137(b)(3)(A), 
199(d)(2)(A), and 219(g)(3)(A)(ii). 
(3) Section 469(i)(3)(F)(iii) of such Code is 
amended by striking ‘‘221, and 222’’ and inserting 
‘‘and 221’’. 
(4) Section 6050S(e) of such Code is amended 
by striking ‘‘section 221(d)(1)’’ and inserting ‘‘sec-
tion 221(c)(1)’’. 
(5) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by 
striking the item relating to section 221 and insert-
ing the following new item: 
‘‘Sec. 221. Higher education expenses.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments made after December 
31, 2008. 
Æ 
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