I 

114TH CONGRESS 

1ST SESSION H. R. 3206 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 23, 2015 

Mr. MCDERMOTT (for himself, Ms. FRANKEL of Florida, Ms. MOORE, Mr. 

VAN HOLLEN, Mr. CAPUANO, Ms. CLARK of Massachusetts, Mr. SCOTT

of Virginia, Mr. TAKANO, Mr. CONYERS, Mr. SWALWELL of California, 

Mr. BLUMENAUER, Mr. GALLEGO, Mr. RANGEL, Mr. HONDA, Mr. ELLISON, Ms. JUDY CHU of California, Mr. THOMPSON of California, Mr. 

MURPHY of Florida, Ms. WILSON of Florida, Mrs. TORRES, Mr. FARR, 

Mrs. NAPOLITANO, Ms. MAXINE WATERS of California, and Ms. 

BONAMICI) 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 

from gross income student loan indebtedness discharged 

in connection with closures of educational institutions, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Student Tax Relief 

5 Act of 2015’’. 


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1 SEC. 2. EXCLUSION FROM GROSS INCOME OF STUDENT 

2 LOAN INDEBTEDNESS CANCELLED, DIS3 CHARGED, OR FORGIVEN. 

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

5 Revenue Code of 1986 is amended by adding at the end 

6 the following: 

7 ‘‘(5) DISCHARGES IN CONNECTION WITH STU8 DENT LOAN INDEBTEDNESS CANCELLED, DIS9 CHARGED, OR FORGIVEN.— 

10 ‘‘(A) IN GENERAL.—Gross income shall 

11 not include— 

12 ‘‘(i) any amount of a student loan dis13 charged in whole or in part pursuant to 

14 section 437(c) of the Higher Education 

15 Act of 1965 (20 U.S.C. 1087(c)) or by rea16 son of a defense asserted pursuant to sec17 tion 455(h) of such Act (20 U.S.C. 

18 1087e(h)), 

19 ‘‘(ii) any amount of a loan discharged 

20 under section 464(g) of such Act (20 

21 U.S.C. 1087dd(g)), 

22 ‘‘(iii) any amount of a loan, and inter23 est on a loan, which is canceled under sec24 tion 465 of such Act (20 U.S.C. 

25 1087ee(a)(5)), or 


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1 ‘‘(iv) any amount which (but for this 

2 subparagraph) would be includible in gross 

3 income by reason of the discharge (in 

4 whole or in part) of a loan to assist the at5 tendance at an institution of higher learn6 ing if such discharge was pursuant to an 

7 agreement with the Consumer Financial 

8 Protection Bureau or any other Federal 

9 agency in connection with the closure (or 

10 other agency action) relating to such insti11 tution or successor institution. 

12 ‘‘(B) LIMITATION ON EXCLUSION.—Not13 withstanding any other provision of law, no 

14 amount shall be excluded from gross income 

15 after the date of the enactment of this para16 graph by a provision of the Higher Education 

17 Act of 1965.’’. 

18 (b) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Except as provided by para20 graph (2), the amendment made by subsection (a) 

21 shall apply with respect to any forgiveness of indebt22 edness after June 19, 2014. 

23 (2) LIMITATION.—Section 108(f)(5)(B) of the 

24 Internal Revenue Code of 1986, as added by sub25 section (a), shall apply to loans cancelled, disVerDate Sep 11 2014 03:05 Jul 28, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3206.IH H3206

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1 charged, or forgiven after the date of the enactment 

2 of this Act. 

Æ 


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