Section 1 Short title
This Act may be cited as the “Student Tax Relief Act”.
Student Tax Relief Act
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income certain discharges of student loan indebtedness.
Sec. 2 Exclusion from gross income of discharges of student loan indebtedness
In general— Section 108(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(5) Discharges in connection with student loan indebtedness—Gross income shall not include—
“(A) any amount of a student loan discharged in whole or in part by reason of a defense asserted pursuant to section 455(h) of the Higher Education Act of 1965 (20 U.S.C. 1087e(h)), or
“(B) 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.”
Effective date— The amendment made by subsection (a) shall apply with respect to any forgiveness of indebtedness after June 12, 2014.