I 

117TH CONGRESS 

1ST SESSION H. R. 1683 

To amend the Internal Revenue Code of 1986 to exclude certain student 

loan forgiveness from gross income. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2021 

Mr. DANNY K. DAVIS of Illinois introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

certain student loan forgiveness from gross income. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. MODIFICATION OF TREATMENT OF STUDENT 

4 LOAN FORGIVENESS. 

5 (a) IN GENERAL.—Section 108(f) of the Internal 

6 Revenue Code of 1986 is amended by striking paragraph 

7 (5) and inserting the following: 

8 ‘‘(5) SPECIAL RULE FOR DISCHARGES IN 2021

9 THROUGH 2025.—Gross income does not include any 

10 amount which (but for this subsection) would be inVerDate Sep 11 2014 02:19 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1683.IH H1683

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1 cludible in gross income by reason of the discharge 

2 (in whole or in part) after December 31, 2020, and 

3 before January 1, 2026, of— 

4 ‘‘(A) any loan provided expressly for post5 secondary educational expenses, regardless of 

6 whether provided through the educational insti7 tution or directly to the borrower, if such loan 

8 was made, insured, or guaranteed by— 

9 ‘‘(i) the United States, or an instru10 mentality or agency thereof, 

11 ‘‘(ii) a State, territory, or possession 

12 of the United States, or the District of Co13 lumbia, or any political subdivision thereof, 

14 or 

15 ‘‘(iii) an eligible educational institu16 tion (as defined in section 25A), 

17 ‘‘(B) any private education loan (as de18 fined in section 140(a)(7) of the Truth in Lend19 ing Act), 

20 ‘‘(C) any loan made by any educational or21 ganization described in section 170(b)(1)(A)(ii) 

22 if such loan is made— 

23 ‘‘(i) pursuant to an agreement with 

24 any entity described in subparagraph (A) 

25 or any private education lender (as defined 


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1 in section 140(a) of the Truth in Lending 

2 Act) under which the funds from which the 

3 loan was made were provided to such edu4 cational organization, or 

5 ‘‘(ii) pursuant to a program of such 

6 educational organization which is designed 

7 to encourage its students to serve in occu8 pations with unmet needs or in areas with 

9 unmet needs and under which the services 

10 provided by the students (or former stu11 dents) are for or under the direction of a 

12 governmental unit or an organization de13 scribed in section 501(c)(3) and exempt 

14 from tax under section 501(a), or 

15 ‘‘(D) any loan made by an educational or16 ganization described in section 170(b)(1)(A)(ii) 

17 or by an organization exempt from tax under 

18 section 501(a) to refinance a loan to an indi19 vidual to assist the individual in attending any 

20 such educational organization but only if the re21 financing loan is pursuant to a program of the 

22 refinancing organization which is designed as 

23 described in subparagraph (C)(ii). 

24 The preceding sentence shall not apply to the dis25 charge of a loan made by an organization described 


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1 in subparagraph (C) or made by a private education 

2 lender (as defined in section 140(a)(7) of the Truth 

3 in Lending Act) if the discharge is on account of 

4 services performed for either such organization or 

5 for such private education lender.’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to discharges of loans after Decem8 ber 31, 2020. 

Æ 


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