I 

114TH CONGRESS 

2D SESSION H. R. 5204 

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 

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. 

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 

5 and Disability Act’’. 


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•HR 5204 IH

1 SEC. 2. TREATMENT OF STUDENT LOANS DISCHARGED ON 

2 ACCOUNT OF DEATH OR DISABILITY. 

3 (a) AMENDMENTS TO INTERNAL REVENUE CODE OF

4 1986.— 

5 (1) IN GENERAL.—Section 108(f) of the Inter6 nal Revenue Code of 1986 is amended by adding at 

7 the end the following new paragraph: 

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

9 DISABILITY.— 

10 ‘‘(A) IN GENERAL.—In the case of an indi11 vidual, gross income does not include any 

12 amount which (but for this subsection) would 

13 be includible in gross income by reasons of the 

14 discharge (in whole or in part) of any loan de15 scribed in subparagraph (B) if such discharge 

16 was— 

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

18 of section 437 of the Higher Education 

19 Act of 1965 or the parallel benefit under 

20 part D of title IV of such Act (relating to 

21 the repayment of loan liability), 

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

23 of such Act, or 

24 ‘‘(iii) otherwise discharged on account 

25 of the death or total and permanent dis26 ability of the student. 


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•HR 5204 IH

1 ‘‘(B) LOANS DESCRIBED.—A loan is de2 scribed in this subparagraph if such loan is— 

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

4 paragraph (2)), or 

5 ‘‘(ii) a private education loan (as de6 fined in section 140(7) of the Consumer 

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

8 1650(7))).’’. 

9 (2) EFFECTIVE DATE.—The amendment made 

10 by this section shall apply to discharges of loans be11 fore, on, or after the date of the enactment of this 

12 Act. 

13 (b) AMENDMENT TO THE HIGHER EDUCATION ACT

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

15 of 1965 (20 U.S.C. 1087(d)) is amended by inserting ‘‘or 

16 becomes permanently and totally disabled (as determined 

17 in accordance with regulations of the Secretary), or if the 

18 student is unable to engage in any substantial gainful ac19 tivity by reason of any medically determinable physical or 

20 mental impairment that can be expected to result in death, 

21 has lasted for a continuous period of not less than 60 

22 months, or can be expected to last for a continuous period 

23 of not less than 60 months’’ after ‘‘dies’’. 

Æ 


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