The Nation - News from March 16, 1988

Senators called for passage of legislation to restore deductibility of interest payments on student loans, saying Congress made a “grave mistake” in eliminating the break in the 1986 tax revision bill. At a Senate Finance Committee hearing, lawmakers said the elimination of the student loan deduction was blatantly unfair in view of some deductions that were left undisturbed by the landmark tax revision bill. Sen. Charles E. Grassley (R-Iowa) urged passage of his bill to restore the deduction for interest on education loans, and said Congress made a mistake in lumping education expenses with consumer expenses--such as auto loans--in phasing out deductibility of personal interest payments.