Increases the: (1) lifetime learning credit to 28 percent of qualified education expenses; and (2) related income eligibility levels.
Eliminates specified needs-based educational assistance under the Higher Education Act of 1965 from financial eligibility computations for such credit and the hope scholarship credit.
Amends education loan interest provisions to: (1) eliminate the 60-month deductibility limit; (2) increase joint filer income eligibility levels; and (3) apply deductibility limits on a per student basis.
Amends the Higher Education Act of 1965 to increase Federal Pell grant amounts for academic years 2001-2002 and 2002-2003.