Affordable Education Act

Affordable Education Act - Amends the Internal Revenue Code (as revised by the Taxpayer Relief Act of 1997) to exclude from income distributions from qualified tuition programs used for qualifying higher education expenses. Includes within the definition of "qualified State tuition program" programs maintained by eligible educational institutions. Requires such non-State programs to limit annual contributions on behalf of a designated beneficiary to $2,000.

Sets forth related excess contribution provisions.

(Sec. 3) Makes the exclusion from gross income for employer-provided educational assistance permanent. Includes graduate education assistance within such exclusion.

(Sec. 4) Increases the maximum annual contribution limit for education individual retirement accounts to $2,000. Includes specified elementary and secondary school expenses (including home schooling) within the definition of "qualified education expenses."