A bill to amend the Internal Revenue Code of 1986 to allow taxpayers a nonrefundable credit of not more than 15 percent of interest paid on indebtedness incurred to finance qualified educational expenses.

Amends the Internal Revenue Code to allow an individual a 15 percent nonrefundable income tax credit for interest paid or incurred on indebtedness to pay qualified educational expenses (tuition, supplies, reasonable living expenses) of the taxpayer or the taxpayer's spouse or dependent at a qualified educational institution. Excludes indebtedness secured by a qualified residence of the taxpayer. Reduces the credit (but not below zero) by one percent for each $1,000 by which the taxpayer's adjusted gross income exceeds $25,000 ($40,000 for joint returns).

Repeals the current income tax deduction for interest on home equity loans used to pay educational expenses.