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http://thomas.loc.gov/cgi-bin/query/C?c107:./temp/~c107nT2lgO

This is HR 436 (if the link works)

Dang! I'm not seeing anything about principal and interest, only interest . . .

A change like this was essentially incorporated into the 2001 tax act (Economic Growth and Relief and Fairness And All That Tax Act of 2001). The new limit phases out at $50k for single and $100k for couples. They kept the $2500 cap.

At the start of a loan (esp. 30 year one), most of the payment is interest anyway, but ideally, there should be the full deduction of the payment. Alternatively, I should be allowed to save in a Section 529 account, and apply the gain tax free to an outstanding loan balance. That's the deal the Section 529 savers are getting on tuition now, so why should their tuition payments be tax free and mine can't?
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