Higher Education Affordability and Equity Act of 2005 (HR 1380)

LEGISLATIVE UPDATE:
Higher Education Affordability and Equity Act of 2005 (HR 1380)

Representative Phil English (R-PA) recently introduced the Higher Education Affordability and Equity Act of 2005 (HR 1380). This legislation seeks to address the growing problem of the rising cost of post-secondary study by making a number of changes to current law of interest to APAGS members including (list below does not include all proposed changes):

Makes permanent the education provisions included in the Economic Growth and Tax Relief Reconciliation Act of 2001 (improved the tax treatment of education savings) which would otherwise sunset in 2010

Expands the student loan interest deduction to allow borrowers to deduct the full amount of interest on their loan and increase the income eligibility to claim the deduction

Excludes the amount of funds received as part of a scholarship, fellowship or grant from taxable income if used for qualified higher education expenses, including room and board

Equalizes the treatment of prepayment and savings plans in the context of need analysis

A full copy of the legislation can be found by visiting www.congress.gov and typing in the bill number, HR 1380.

Last Congress, Rep. English’s bill was of great interest to many of our APAGS members. Education PPO will keep you posted on developments related to this legislation during the 109th Congress. We look forward to working with you!

WOULD YOU LIKE TO GET MORE INVOLVED?

Rep. English’s staff is currently seeking co-sponsors for this legislation and you can help. If you are interested, please contact your Member of the U.S. House of Representatives and encourage him or her to become a co-sponsor of HR 1380.

WHEN: There is no deadline so if you are pressed for time this week, you can put it at the top of your calendar for the next week! Still don’t put it off too long because a word from you to your Representative could influence whether he/she co-sponsors this legislation.

HOW TO CONTACT: To find out who your Representative is, visit www.house.gov and type in your zip code in the blank space at the top of the page. It will provide you a link to your Representative.

WHAT TO DO: Ask to speak with the staff person handling education tax proposals. When speaking with staff or leaving a message, give your name, state that you are a constituent and would like your Representative to co-sponsor HR 1380. If you are given the opportunity, say why this legislation is important to YOU!