College Tuition Assistance Act of 2001

College Tuition Assistance Act of 2001 - Amends the Internal Revenue Code to allow an income-based deduction ($5,000 maximum for 2002; $10,000 maximum for 2003 and thereafter) for qualifying higher education tuition and related expenses on behalf of an individual who can be claimed as a personal exemption by a taxpayer.

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.