I 

116TH CONGRESS 

2D SESSION H. R. 8514 

To direct the Secretary of Education to cancel or repay up to $25,000 

in Federal student loans for each borrower. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 2, 2020 

Mr. GONZALEZ of Texas introduced the following bill; which was referred to 

the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To direct the Secretary of Education to cancel or repay 

up to $25,000 in Federal student loans for each borrower. 

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 Loan Relief 

5 Act’’. 

6 SEC. 2. WRITING DOWN BALANCES FOR FEDERAL STUDENT 

7 LOAN BORROWERS. 

8 (a) IN GENERAL.—Not later than 90 days after the 

9 date of enactment of this Act, the Secretary shall cancel 


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1 or repay an amount on the outstanding balance due (in2 cluding the unpaid principal amount, any accrued interest, 

3 and any fees or charges) on the Federal student loans of 

4 a borrower that is equal to the lesser of— 

5 (1) $25,000; or 

6 (2) the total outstanding balance due on such 

7 loans of the borrower. 

8 (b) APPLICATION.—Unless otherwise requested by 

9 the borrower in writing, a cancellation or repayment under 

10 subsection (a) shall be applied— 

11 (1) in the case of a borrower whose loans have 

12 different applicable rates of interest, first toward the 

13 outstanding balance due on the loan with the highest 

14 applicable rate of interest among such loans; and 

15 (2) in the case of a borrower of loans that have 

16 the same applicable rates of interest, first toward 

17 the outstanding balance of principal due on the loan 

18 with the highest principal balance among such loans. 

19 (c) DATA TO IMPLEMENT.—Contractors of the Sec20 retary, and holders of Federal student loans, shall report, 

21 to the satisfaction of the Secretary the information nec22 essary to carry out this section. 

23 (d) TAXATION.—For purposes of the Internal Rev24 enue Code of 1986, in the case of any cancellation or reVerDate Sep 11 2014 04:20 Oct 29, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8514.IH H8514

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1 payment of indebtedness under this subsection with re2 spect to any borrower: 

3 (1) EXCLUSION FROM GROSS INCOME.—No 

4 amount shall be included in the gross income of such 

5 borrower by reason of such cancellation or repay6 ment. 

7 (2) WAIVER OF INFORMATION REPORTING RE8 QUIREMENTS.—Amounts excluded from gross in9 come under paragraph (1) shall not be required to 

10 be reported (and shall not be taken into account in 

11 determining whether any reporting requirement ap12 plies) under chapter 61 of such Code. 

13 (e) DEFINITIONS.—In this section: 

14 (1) FEDERAL STUDENT LOAN.—The term 

15 ‘‘Federal student loan’’ means a loan— 

16 (A) made under part B, part D, or part E 

17 of title IV of the Higher Education Act of 1965 

18 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa 

19 et seq.), and held by the Department of Edu20 cation; or 

21 (B) made, insured, or guaranteed under 

22 part B of the such title (20 U.S.C. 1071 et 

23 seq.), or made under part E of such title (20 

24 U.S.C. 1087qaa seq.), and not held by the De25 partment of Education. 


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1 (2) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Education. 

Æ 


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