IB 

Union Calendar No. 674 

114TH CONGRESS 

2D SESSION H. R. 5204 

[Report No. 114–861, Part I] 

To amend the Internal Revenue Code of 1986 and the Higher Education 

Act of 1965 to provide an exclusion from income for student loan 

forgiveness for students who have died or become disabled. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2016 

Mr. ROSKAM (for himself, Mr. KIND, Mr. COSTELLO of Pennsylvania, and Ms. 

PINGREE) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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 

DECEMBER 8, 2016 

Additional sponsors: Mr. LAMALFA, Mr. RENACCI, Mr. PASCRELL, Mr. SEAN

PATRICK MALONEY of New York, Mr. REICHERT, Mr. HULTGREN, Mr. 

COFFMAN, Mr. DESAULNIER, Mr. BRAT, Mr. PERLMUTTER, Mr. MEEHAN, Mr. MCNERNEY, Mr. POLIQUIN, and Ms. BONAMICI

DECEMBER 8, 2016 

Reported from the Committee on Ways and Means with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

DECEMBER 8, 2016 

The Committee on Education and the Workforce discharged; committed to the 

Committee of the Whole House on the State of the Union and ordered 

to be printed 

[For text of introduced bill, see copy of bill as introduced on May 12, 2016] 


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•HR 5204 RH

A BILL 

To amend the Internal Revenue Code of 1986 and the Higher Education Act of 1965 to provide an exclusion from 

income for student loan forgiveness for students who 

have died or become disabled. 


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•HR 5204 RH

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 ‘‘Stop Taxing Death and 

5 Disability Act’’. 

6 SEC. 2. TREATMENT OF STUDENT LOANS DISCHARGED ON 

7 ACCOUNT OF DEATH OR DISABILITY. 

8 (a) AMENDMENTS TO INTERNAL REVENUE CODE OF

9 1986.— 

10 (1) IN GENERAL.—Section 108(f) of the Internal 

11 Revenue Code of 1986 is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(5) DISCHARGES ON ACCOUNT OF DEATH OR

14 DISABILITY.— 

15 ‘‘(A) IN GENERAL.—In the case of an indi16 vidual, gross income does not include any 

17 amount which (but for this subsection) would be 

18 includible in gross income by reasons of the dis19 charge (in whole or in part) of any loan de20 scribed in subparagraph (B) if such discharge 

21 was— 

22 ‘‘(i) pursuant to subsection (a) or (d) 

23 of section 437 of the Higher Education Act 

24 of 1965 or the parallel benefit under part D 


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•HR 5204 RH

1 of title IV of such Act (relating to the re2 payment of loan liability), 

3 ‘‘(ii) pursuant to section 464(c)(1)(F) 

4 of such Act, or 

5 ‘‘(iii) otherwise discharged on account 

6 of the death or total and permanent dis7 ability of the student. 

8 ‘‘(B) LOANS DESCRIBED.—A loan is de9 scribed in this subparagraph if such loan is— 

10 ‘‘(i) a student loan (as defined in 

11 paragraph (2)), or 

12 ‘‘(ii) a private education loan (as de13 fined in section 140(7) of the Consumer 

14 Credit Protection Act (15 U.S.C. 

15 1650(7))).’’. 

16 (2) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to discharges of indebtedness 

18 after December 31, 2016. 

19 (b) AMENDMENT TO THE HIGHER EDUCATION ACT OF

20 1965.—Section 437(d) of the Higher Education Act of 1965 

21 (20 U.S.C. 1087(d)) is amended by inserting ‘‘or becomes 

22 permanently and totally disabled (as determined in accord23 ance with regulations of the Secretary), or if the student 

24 is unable to engage in any substantial gainful activity by 

25 reason of any medically determinable physical or mental 


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•HR 5204 RH

1 impairment that can be expected to result in death, has 

2 lasted for a continuous period of not less than 60 months, 

3 or can be expected to last for a continuous period of not 

4 less than 60 months’’ after ‘‘dies’’. 


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Union Calendar No. 674 

114TH CONGRESS 

2D SESSION H. R. 5204 

[Report No. 114–861, Part I] 

A BILL 

To amend the Internal Revenue Code of 1986 and 

abled. ness for students who have died or become disexclusion from income for student loan forgivethe Higher Education Act of 1965 to provide an 

DECEMBER 8, 2016 

Reported from the Committee on Ways and Means with 

an amendment 

DECEMBER 8, 2016 

The Committee on Education and the Workforce disprinted House on the State of the Union and ordered to be charged; committed to the Committee of the Whole 


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