Section 1 Short title
This Act may be cited as the “Student Tax Relief Act of 2015”.
Student Tax Relief Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income student loan indebtedness discharged in connection with closures of educational institutions, and for other purposes.
Sec. 2 Exclusion from gross income of student loan indebtedness cancelled, discharged, or forgiven
In general— Section 108(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
“(5) Discharges in connection with student loan indebtedness cancelled, discharged, or forgiven
“(A) In general—Gross income shall not include—
“(i) any amount of a student loan discharged in whole or in part pursuant to section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 1087(c)) or by reason of a defense asserted pursuant to section 455(h) of such Act (20 U.S.C. 1087e(h)),
“(ii) any amount of a loan discharged under section 464(g) of such Act (20 U.S.C. 1087dd(g)),
“(iii) any amount of a loan, and interest on a loan, which is canceled under section 465 of such Act (20 U.S.C. 1087ee(a)(5)), or
“(iv) any amount which (but for this subparagraph) would be includible in gross income by reason of the discharge (in whole or in part) of a loan to assist the attendance at an institution of higher learning if such discharge was pursuant to an agreement with the Consumer Financial Protection Bureau or any other Federal agency in connection with the closure (or other agency action) relating to such institution or successor institution.
“(B) Limitation on exclusion—Notwithstanding any other provision of law, no amount shall be excluded from gross income after the date of the enactment of this paragraph by a provision of the Higher Education Act of 1965.”
Effective date—
In general— Except as provided by paragraph (2), the amendment made by subsection (a) shall apply with respect to any forgiveness of indebtedness after June 19, 2014.
Limitation— Section 108(f)(5)(B) of the Internal Revenue Code of 1986, as added by subsection (a), shall apply to loans cancelled, discharged, or forgiven after the date of the enactment of this Act.