1. Expansion of deduction for interest on education loans (a) Elimination of cap on deduction Section 221 of the Internal Revenue Code of 1986 is amended by striking subsections (b) and (f). (b) Carryover of excess interest Section 221 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by inserting after subsection (a) the following new subsection: (b) Carryover If the amount of the deduction allowable under subsection (a) exceeds the taxable income of the taxpayer for the taxable year (determined without regard to this section and section 222), then an amount equal to such excess shall be treated as interest paid by the taxpayer in the succeeding taxable year on a qualified education loan. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 2. Expansion of deduction for qualified tuition and related expenses (a) Elimination of dollar limitation