Patsy T. Mink: “Today I rise to re-introduce a bill important to all students--H.R. . In the 105th Congress, we passed legislation that…”

“Today I rise to re-introduce a bill important to all students--H.R. . In the 105th Congress, we passed legislation that allows students to deduct interest paid on student loans. We did this to make it easier for all Americans to bear the enormous costs of higher education, and I supported this effort wholeheartedly. My bill improves this law by removing the current 60 month limitation period for deducting student loan interest. As the law currently stands, if your student loan is older than 5 years from when it came due, you are not eligible for a tax deduction. This limitation needs to be removed. Higher education has become increasingly expensive and is creating a financial burden on graduates well beyond the first five years of graduation. According to the General Accounting Office, the average student loan in 1980 was $518; in 1995, it rose to $2,417, an increase of 367%. Tuition at 4-year public and private colleges and universities has risen nearly three times as much as median household income in the past 15 years. As a result, it is becoming harder for students to graduate from college or graduate school without the help of student loans. Students that graduate with student loans start out a few steps behind those without it. It is harder for them to save for emergencies or to invest money for their future. It is also harder for them to meet day-to-day expenses. This tax deduction will help. All interest accrued on student loans should be deductible.”