February 23, 2001
Student Loan Interest Deduction Legislation Introduced
Rep. Phil English (R-Pa.) Feb.6 introduced legislation (H.R. 436) to expand the interest deductibility of student loans. Specifically, H.R. 436 repeals the dollar limitation on the deduction for interest on education loans, increases the income threshold for the phase out of such deduction to $100,000 for single filers and $150,000 for joint filers, and repeals the 60-month limitation on the amount of interest that may be deducted. Current law limits the amount of deduction to $2,500 and the current threshold for the income eligibility phase out begins at $40,000 for single filers and $60,000 for joint filers.
Similar legislation (S. 152) has been introduced in the Senate by Sen. Charles Grassley (R-Iowa). S. 152 seeks to eliminate the 60-month limitation and raises the income threshold to $50,000 for single filers and $100,000 for joint filers.
Information: Jonathan Fishburn, AAMC Office of Governmental Relations, 202-828-0525.
