Affordable Education Act of 2001 Form Letter

[YOUR U.S. SENATOR]

[DATE]

Dear Senator [__________]:

As a [student/resident/young physician] member of the American Medical Association (AMA), I am writing to urge you to support and expand the Affordable Education Act of 2001 when it reaches the Senate floor. The bill includes several provisions that are critical to assisting student loan borrowers.

I appreciate the Senate Finance Committee’s efforts regarding lessening the financial burden of higher education. The Committee has included the following provisions into the Affordable Education Act of 2001, which would be helpful for individuals attempting to finance their education or pay off their medical school loans: (1) the elimination of the 60-month time limit on interest deductibility of student loans; (2) the increase of the income threshold for the phase out of the interest deductibility of student loans (up to a modified adjusted gross income (AGI) of $65,000 for single filers and $130,000 for joint filers; and (3) the tax exemption for scholarships received through the National Health Service Corps (NHSC) and the Armed Forces Health Professions program.

Unfortunately, many young physicians and other professionals who are overburdened by their educational debt will not benefit from these provisions. Residents and young physicians face high debt from student loans. Therefore, I encourage you to expand the Affordable Education Act in two areas, which would mirror provisions in H.R. 436:

1. Repeal the dollar limitation on the deduction for interest on education loans. In 2001, taxpayers will be able to deduct up to $2,500 of their student loan interest. The typical medical student graduates from medical school with $95,000 in debt. Such dept requires that the loan borrower pay between $7,000 and $8,000 of interest each year.

2. Increase the income limits for interest tax deductibility up to a modified AGI of $115,000 for single filers ($165,000 for joint filers).

[OPTIONAL SECTION in letter] Large debt from student loans is a tremendous hardship, especially during the years a physician is undergoing his or her residency program. [Can write something personal about how debt affects you.]

Expansion and passage of the Affordable Education Act would significantly aid younger workers paying off high student loan debts. I hope that you will support and expand this key piece of legislation. If I can assist you by sharing my story directly with you, please do not hesitate to call upon me.

Respectfully,

John Doe
[Medical School/Residency/Practice]