,i  #aaeth ,,congress  #b;d ,session    
,h4 ,r4 #fgfg  ,,in ,,the ,,house ,,of  
,,representatives  ,september #aj1      
#bjah,mr4 ,paulsen introduced the       
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to allow qualified      
education loan repayments from section  
#ebi plans4  #a4 ,qualified education   
loan repayments allowed from section    
#ebi plans  7a7 ,in general ,section    
#ebi7;c7 of the ,internal ,revenue ,code
 of #aihf is amended by adding at the   
end the following new paragraph3  7#h7  
,treatment of qualified education loan  
repayments  7,a7 ,in general ,any       
reference in this subsection to the term
 qualified higher education expense     
shall include a reference to amounts    
paid as principal or interest on any    
qualified education loan 7as defined in 
section #bba7;d77 of the designated     
beneficiary or a sibling of the         
designated beneficiary4  7,b7           

,limitation ,the amount of distributions
 treated as a qualified higher education
 expense under this paragraph with      
respect to the loans of any individual  
shall not exceed #aj1jjj 7reduced by the
 amount of distributions so treated for 
all prior taxable years74  7,c7 ,special
 rules for siblings of the designated   
beneficiary  7i7 ,separate accounting   
,for purposes of subparagraph 7,b7 and  
subsection 7d71 amounts treated as a    
qualified higher education expense with 
respect to the loans of a sibling of the
 designated beneficiary shall be taken  
into account with respect to such       
sibling and not with respect to such    
designated beneficiary4  7ii7 ,sibling  
defined ,for purposes of this paragraph1
 the term sibling means an individual   
who bears a relationship to the         
designated beneficiary which is         
described in section #aeb7;d77#b77;,b74 
4  7b7 ,coordination with deduction for 
student loan interest ,section          
#bba7;e77#a7 of such ,code is amended by

 adding at the end the following3 ,the  
deduction otherwise allowable under     
subsection 7a7 7prior to the application
 of subsection 7b77 to the taxpayer for 
any taxable year shall be reduced 7but  
not below zero7 by so much of the       
distributions treated as a qualified    
higher education expense under section  
#ebi7;c77#h7 with respect to loans of   
the taxpayer as would be includible in  
gross income under section              
#ebi7;c77#c77;,a7 for such taxable year 
but for such treatment44  7c7 ,effective
 date ,the amendments made by this      
section shall apply to distributions    
made after the date of the enactment of 
this ,act4