Notice of Proposed Rulemaking on the Deduction for Interest on Qualified Education Loans

The Internal Revenue Service (IRS) recently released a notice of proposed rulemaking, dated January 21, 1999, regarding the deduction of interest paid on qualified education loans. These proposed regulations reflect changes to the law made by the Taxpayer Relief Act of 1997, the Internal Revenue Service Restructuring and Reform Act of 1998, and the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999. These proposed regulations affect taxpayers who pay interest on qualified education loans. The IRS notice also announced that, upon request, a public hearing will be held and videoconferenced on these proposed regulations.

Comments regarding the proposed regulations should be submitted by April 21, 1999. Submissions should be sent to: CC:DOM:CORP:R(REG-116826-97), room 5226, Internal Revenue Service P.O. Box 7604, Ben Franklin Station, Washington D.C. 20044. Comments may also be submitted electronically by selecting the "Tax Regs" option on the IRS web-site at http://www.irs.ustreas.gov/prod/tax_regs/comments.html.   Requests to videoconference the hearing must by received by March 22, 1999.

A copy of the IRS notice can be accessed from the Department of Education's web-site at http://ifap.ed.gov. If you have additional questions regarding the regulations, you may contact John Moriarty at (202) 622-4950. Questions concerning the submission of comments or the hearing should be directed to Michael L. Slaughter at (202) 622-7190.

Any questions regarding this bulletin can be directed to the UHEAA Policy and Training Department at (801) 321-7166.