To amend the Internal Revenue Code of 1986 to permanently extend the exclusion for employer-provided educational assistance programs, to restore such exclusion for graduate level courses, and to allow a deduction for interest on education loans.

Amends the Internal Revenue Code to with respect to the income exclusion for employer-provided educational assistance programs to: (1) make such exclusion permanent; and (2) include graduate school assistance. Provides an income-based deduction for interest on qualified education loans incurred on behalf of a taxpayer or spouse (excludes dependents). Sets forth reporting requirements for persons in the business of receiving interest from such loans.