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 Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation and the Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in 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 ex-
penses for higher education and to reduce the maximum 
interest rate allowable 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 ‘‘College Debt Allevi-
ation Act of 2006’’. 
VerDate Aug 31 2005 
08:46 Apr 07, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5098.IH
H5098
cprice-sewell on PROD1PC66 with BILLS
SEC. 2. DEDUCTION FOR QUALIFIED TUITION AND RE-
LATED EXPENSES. 
(a) EXTENSION.—Subsection (e) of section 222 of 
the Internal Revenue Code of 1986 (relating to termi-
nation) is amended by striking ‘‘December 31, 2005’’ and 
inserting ‘‘December 31, 2010’’. 
(b) INCREASE IN AMOUNT ALLOWED AS DEDUC-
TION.—Subsection (b) of section 222 of such Code (relat-
ing to dollar limitations) is amended to read as follows: 
‘‘(b) DOLLAR LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount allowed as a 
deduction under subsection (a) with respect to the 
taxpayer for any taxable year shall not exceed the 
applicable dollar limit. 
‘‘(2) APPLICABLE DOLLAR LIMIT.—The applica-
ble dollar amount shall be equal to— 
‘‘(A) in the case of a taxpayer whose ad-
justed gross income for the taxable year does 
not exceed $80,000 ($160,000 in the case of a 
joint return), $8,000, and 
‘‘(B) in the case of any other taxpayer, 
zero. 
‘‘(3) ADJUSTED GROSS INCOME.—For purposes 
of paragraph (2), adjusted gross income shall be de-
termined— 
VerDate Aug 31 2005 
08:46 Apr 07, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5098.IH
H5098
cprice-sewell on PROD1PC66 with BILLS
‘‘(A) without regard to this section and 
sections 199, 911, 931, and 933, and 
‘‘(B) after application of sections 86, 135, 
137, 219, 221, and 469.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 3. REDUCTION OF STUDENT LOAN INTEREST RATES. 
(a) FFEEL LOANS.—Section 427A(l) of the Higher 
Education Act of 1965 (20 U.S.C. 1077a(l)) is amended— 
(1) in paragraph (2), by striking ‘‘8.5 percent’’ 
and inserting ‘‘6.8 percent’’; and 
(2) in paragraph (3)(B), by striking ‘‘8.25 per-
cent’’ and inserting ‘‘6.8 percent’’. 
(b) DIRECT LOANS.—Section 455(b)(7) of such Act 
(20 U.S.C. 1087e(b)(7)) is amended— 
(1) in subparagraph (B), by striking ‘‘7.9 per-
cent’’ and inserting ‘‘6.8 percent’’; and 
(2) in subparagraph (C)(ii), by striking ‘‘8.25 
percent’’ and inserting ‘‘6.8 percent’’. 
Æ 
VerDate Aug 31 2005 
08:46 Apr 07, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H5098.IH
H5098
cprice-sewell on PROD1PC66 with BILLS