A bill to amend the Internal Revenue Code of 1986 to restore the deduction for interest paid on education loans and to exclude from gross income the portion of a scholarship which covers living expenses while away from home.

Amends the Internal Revenue Code to allow an income tax deduction for interest on a qualified educational loan incurred to pay the educational expenses (tuition, fees, books, supplies, reasonable living expenses) of the taxpayer, spouse, or dependent.

Permits an exclusion from gross income of scholarship amounts used for a student's reasonable living expenses while attending school away from home.