Section 1 Short title
This Act may be cited as the “Student Loan Tax Relief Act”.
Student Loan Tax Relief Act
A BILL
To amend the Internal Revenue Code of 1986 to provide an exclusion from income for student loan forgiveness for students in certain income-based or income-contingent repayment programs who have completed payment obligations, and for other purposes.
Sec. 2 Certain student loans the repayment of which is income contingent or income-based
In general— Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986 is amended by striking “any student loan if” and all that follows and inserting
“(A) such discharge was pursuant to a provision of such loan under which all or part of the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain professions for any of a broad class of employers, or
“(B) such discharge was pursuant to section 455(e) or section 493C(b)(7) of the Higher Education Act of 1965 (relating to income contingent and income-based repayment).”
Effective Date— The amendment made by subsection (a) shall apply to discharges of loans after December 31, 2014.
Sec. 3 Student loans discharged on account of death or disability
In general— Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986, as amended by section 2, is amended by striking “or” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, or”, and by adding at the end the following new subparagraph:
“(C) such discharge was on account of the death or total and permanent disability of the student.”
Effective Date— The amendment made by subsection (a) shall apply to discharges of loans after December 31, 2014.