Comprehensive Social Security Amendments of 1981

Comprehensive Social Security Amendments of 1981 - Amends the Internal Revenue Code and title XVIII (Medicare) of the Social Security Act to finance the hospital insurance program partially through general revenues and provide a corresponding decrease in the hospital insurance tax rates on employees, employers, and self-employment income. Increases the old age, survivors and disability insurance tax rates on employees, employers, and self-employment income.

Amends titles II (Old Age, Survivors and Disability Insurance) and XVIII of the Social Security Act to permit the Trustees of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund to make loans to the other Funds, prior to fiscal year 1991, whenever one of the funds falls below 25 percent of the amount of its disbursements for the 12 months preceding the borrowing. Provides for the repayment of such loans.

Amends title II to revise the time periods which constitute base quarters and cost-of-living computation quarters for purposes of cost-of-living adjustments in title II benefits.

Increases the minimum primary insurance amount and the number of years of coverage which may be counted in computing the primary insurance amount of an individual. Permits an individual to include as years of coverage, for purposes of computing the primary insurance amount, any calendar years, not to exceed ten, during which such individual was living with and caring for a child under the age of seven and such individual's wages or self-employment income was insufficient for credit with a year of coverage.

Increases from $255 to $600 the amount of the lump-sum death payment in cases of deaths occurring on and after the enactment of this Act.

Provides for a graduated increase in old age insurance benefits for individuals who delay retirement until after they reach or exceed age 65.

Increases the amount of outside income which an individual receiving title II benefits may earn without a deduction from such benefits.

Revises the method for computing an individual's average indexed monthly earnings for purposes of determining the amount of benefits to which such individual's survivors are or may become entitled.

Increases the maximum benefit amounts for beneficiaries entitled to old age and survivors or disability insurance benefits.

Eliminates the payment of child's insurance benefits on the basis of student status. Directs the Secretary of Education to make interest-free educational loans to individuals who demonstrate entitlement to child's insurance benefits on the basis of student status but for this Act. Specifies the terms and conditions of such loans. Requires that loan repayments be transferred to the Secretary of Health and Human Services for deposit in the Federal Old-Age and Survivors Insurance Trust Fund. Authorizes appropriations to the Secretary of Education for such loans.

Increases the reduction in old age and survivors benefits for individuals who are entitled to such benefits before they reach retirement age.