(Sec. 102) Permits an eligible educational institution (currently, limited to a State or agency or instrumentality thereof) to maintain a qualified tuition program, provided such program has received a ruling that such program meets the applicable requirements for a qualified tuition program.
Title II: Educational Assistance - Permanently extends the exclusion from gross income of employer provided educational assistance.
(Sec. 202) Eliminates the 60 month limit on the student loan interest deduction. Increases the income limitation on the student loan interest deduction.
(Sec. 203) Excludes from gross income certain amounts received under the National Public Health Service Corps Scholarship Program and the F. Edward Hebert Armed Forces Health Professions Scholarship and Financial Assistance Program.
(Sec. 204) Excludes from employee gross income employer contributions to Coverdell Education Savings Accounts on behalf of an employee.
Title III: Liberalization of Tax-Exempt Financing Rules for Public School Construction - Increases the amount by which certain governmental bonds used to finance public school capital expenditures may be exempted from specified arbitrage bond provisions.
(Sec. 302) Provides for the treatment of qualified public educational facility bonds as exempt facility bonds.