WASHINGTON -- Ninety Members of Congress are urging House Ways and Means Committee Chairman Bill Archer to extend a tax deduction for individuals struggling to pay off their student loan debt. In a letter to Archer originated by Congressman George Miller (D-Calif.) the lawmakers called for extending the tax deduction on interest paid on student loan debt for the lifetime of the loans. Current law only allows individuals to deduct the interest for the first five years the loans are repaid.

"Far too many individuals are suffering under substantial student loan payments," the lawmakers wrote in their letter Tuesday. "It is imperative that Congress and the President approve legislation to ease this burden. By eliminating the 60-month cap, we can make meaningful debt relief for borrowers a reality."

Lifting the 60-month cap would help low-income students who took on substantial loan debt to pay for higher education as well as those students who pursued lower-paying careers in the public and non-profit sectors. For these borrowers, paying off their students loans can take much longer than five years. Under the Taxpayer Relief Act of 1997, the interest paid on student loans became eligible for an "above-the-line" deduction on federal income taxes. Only the first 60 loan payments are eligible for the deduction. Student loans are typically paid monthly, meaning that students can deduct the interest on their taxes for only the first five years of repayment.

"Last year, the legislation to lift the 60-month cap was passed by both the House and the Senate," the lawmakers wrote. "This year, we hope the elimination of the 60-month cap can finally become law." The provision was contained in the controversial $800 billion tax bill that was vetoed by the President.

"Members of Congress spend a lot of time talking about wanting to help students and their families," said Miller. "Here is one concrete and simple step we can take now to make higher education more affordable. This measure has broad bi-partisan support and should be adopted swiftly this year."

A copy of the letter is attached below.

Chairman Bill Archer
Committee on Ways and Means
1102 Longworth HOB
Washington DC 20515

Dear Chairman Archer:

We are writing to ask your support in advancing legislation that would bring tax relief to individuals bearing student loans.

As you know, under the Taxpayer Relief Act of 1997, the interest paid on student loans became eligible for an "above-the-line" deduction on federal income taxes. However, only the first 60 loan payments are eligible for the deduction. Because student loan payments are typically made monthly, this means that students can deduct interest payments on their taxes for only the first five years of repayment.

Lifting the 60-month cap on the student loan interest tax deduction would help those who face the greatest burdens in paying off their student loans. These include low-income students who borrowed most heavily to pay for higher education. It also includes those who pursue lower-paying careers in the public or private, non-profit sectors. For these borrowers, debt repayment can take much longer than five years.

Last year, with your help, legislation to lift the 60-month cap was passed by the House and the Senate. This year, we hope the elimination of the 60-month cap can finally become law.

Far too many individuals are currently suffering under substantial student loan payments. It is imperative that Congress and the President approve legislation to ease this burden. By eliminating the 60-month cap, we can make meaningful debt relief for borrowers a reality.

Thank you for your consideration.

Sincerely,

George Miller, Nancy L. Johnson, Patsy T. Mink, Phil English,,Maurice D. Hinchey, Patrick J. Kennedy, Michael E. Capuano, John Conyers, Jr.,,Matt Salmon, Benjamin A. Gilman, Gary L. Ackerman, Richard E. Neal, Rosa L. DeLauro, Adam Smith, Julian C. Dixon, David Wu, Stephen Horn, Stephanie Tubbs Jones, James A. Leach, Jerrold Nadler, Grace F. Napolitano, James F. Traficant, Jr., Bobby L. Rush, Eleanor Holmes Norton, Ron Paul, Michael P. Forbes, James C. Greenwood, Barney Frank, Sherwood L. Boehlert, Sam Gejdenson, Pete Stark, David E. Price, Lane Evans, Lynn N. Rivers, Steve T. Kuykendall, Tom A. Coburn, Sue W. Kelly, Ellen O. Tauscher, Nick J. Rahall, II, Loretta Sanchez, James P. McGovern, David D. Phelps, James A. Barcia, Rick Boucher, Darlene Hooley, Charles B. Rangel, John F. Tierney, William J. Coyne, Joseph Crowley, John B. Larson, Corrine Brown, Julia Carson, Jerry F. Costello, Elijah E. Cummings, Pat Danner, Earl Blumenauer, Donald M. Payne, Robert A. Underwood, Gene Green, Bob Etheridge, Nancy Pelosi, Danny K. Davis, Charles A. Gonzalez, Dennis J. Kucinich, John Lewis, Eliot L. Engel, Bob Filner, Ruben Hinojosa, Peter A. DeFazio, Henry Waxman, Carolyn C. Kilpatrick, Dale E. Kildee, Eni F.H. Faleomavaega, Merrill Cook, Robert Menendez, Lucille Roybal-Allard, Luis V. Gutierrez, Chaka Fattah, Norman D. Dicks, Thomas M. Barrett, Maxine Waters, Lois Capps, Martin Frost, Earl Pomeroy, Bernard Sanders, Robert T. Matsui, Jose E. Serrano, Tom Lantos, Sander M. Levin, Christopher Shays