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May
25, 2001
Urge
Congress not to cut the $33 billion higher education package
in the final tax bill
Call your
Senators today and urge them not to cut the $33 billion higher
education package from the final tax bill. The Senate passed
a $1.35 trillion tax bill earlier this week that included
several student aid provisions. The package would:
- Expand
the current loan deduction to $5,000 by 2004. This provision
would also raise the income cap eligibility to $65,000,
and $130,000 for married couples filing a joint return.
- Eliminate
the current 60-month limit during which interest paid on
student loans is deductible.
- Increase
the annual limit to contributions to education IRAs (Individual
Retirement Accounts) from $500 to $2,000.
- Permit
borrowers to take a tax credit of up to $500 against taxes
they would owe on the interest of their student loan during
the first 60 months in which interest is which interest
payments are required.
- Expand
the current definition of "qualified tuition program" to
included certain prepaid tuition programs established and
maintained by one or more eligible educational institutions.
- Expand
current law that defines education expenses paid by an employer
for its employees as deductible by the employer to graduate
education and makes the exclusion permanent.
Proposals
such as the elimination of the 60-month limit on student loan
interest deduction and the tax credit on student loan interest
paid are important in helping student borrowers repay their
debt.
Action:
Call your
Senators today and urge them NOT to cut the $33 billion higher
education tax package. Also, urge them NOT to cut any of the
specific programs such as the loan benefits and section 127.
It is
especially important for you to call if your Senator is one
of the following key moderates: Breaux (D-LA), Landrieu (D-LA),
Chaffee (R-RI), Lincoln (D-AR, Jeffords (R-VT), Toricelli
(D-NJ), Specter (R-PA), Feinstein (D-CA_, Smith (R-OR), Snowe
(R-ME), Collins (R- ME), Miller (D-GA), Kohl (D- WI), McCain
(R-AZ) and Carnahan (D-MO).
Call your
Senators by using the student aid hotline 1 (800) 574-4AID.
Senate Switchboard: (202) 224-3121
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