I 

116TH CONGRESS 

1ST SESSION H. R. 1798 

To amend the Internal Revenue Code of 1986 to increase the deduction 

allowed for student loan interest and to exclude from gross income 

discharges of income contingent or income-based student loan indebtedness. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2019 

Miss RICE of New York introduced the following bill; which was referred to 

the Committee on Ways and Means, and in addition to the Committee 

on Education and Labor, 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 to increase 

the deduction allowed for student loan interest and to 

exclude from gross income discharges of income contingent or income-based student loan indebtedness. 

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 ‘‘Students and Families 

5 Empowerment Act’’. 


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1 SEC. 2. INCREASE IN DEDUCTION FOR STUDENT LOAN IN2 TEREST. 

3 (a) DOLLAR LIMITATION AND LIMITATION BASED ON

4 INCOME REPLACED WITH LIMITATION ON AGGREGATE

5 EDUCATION INDEBTEDNESS THAT MAY BE TAKEN INTO

6 ACCOUNT.—Section 221(b) of the Internal Revenue Code 

7 of 1986 is amended to read as follows: 

8 ‘‘(b) LIMITATION ON AGGREGATE EDUCATION IN9 DEBTEDNESS THAT MAY BE TAKEN INTO ACCOUNT.— 

10 The aggregate amount taken into account under sub11 section (a) as qualified education loans for any period shall 

12 not exceed $750,000 (twice such amount in the case of 

13 a joint return).’’. 

14 (b) CONFORMING AMENDMENTS.—Section 221 of 

15 such Code is amended by striking subsections (e) and (f) 

16 (relating to special rules and inflation adjustments, re17 spectively) and inserting the following new subsection: 

18 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 

19 shall be allowed under this section for any amount for 

20 which a deduction is allowable under any other provision 

21 of this chapter.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 the date of the enactment of this Act. 


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1 SEC. 3. EXCLUSION FROM GROSS INCOME FOR DISCHARGE 

2 OF INCOME CONTINGENT AND INCOME3 BASED STUDENT LOAN INDEBTEDNESS. 

4 (a) IN GENERAL.—Paragraph (1) of section 108(f) 

5 of the Internal Revenue Code of 1986 is amended to read 

6 as follows: 

7 ‘‘(1) IN GENERAL.—In the case of an indi8 vidual, gross income does not include any amount 

9 which (but for this subsection) would be includible in 

10 gross income by reason of the discharge (in whole or 

11 in part) of any student loan if such discharge was 

12 pursuant to— 

13 ‘‘(A) a provision of such loan under which 

14 all or part of the indebtedness of the individual 

15 would be discharged if the individual worked for 

16 a certain period of time in certain professions 

17 for any of a broad class of employers, or 

18 ‘‘(B) subsections (d)(1)(D) and (e)(7) of 

19 section 455 or section 493C(b)(7) of the Higher 

20 Education Act of 1965 (relating to income con21 tingent and income-based repayment, respec22 tively).’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to discharges of indebtedness after 

25 the date of the enactment of this Act. 


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1 SEC. 4. GRACE PERIOD EXTENSION. 

2 (a) IN GENERAL.—Section 455 of the Higher Edu3 cation Act of 1965 (20 U.S.C. 1087e) is amended by add4 ing at the end the following: 

5 ‘‘(r) GRACE PERIOD EXTENSION.— 

6 ‘‘(1) IN GENERAL.—With respect to the Federal 

7 Direct Stafford Loans and Federal Direct Unsub8 sidized Stafford Loans, section 487(b)(7) shall be 

9 applied— 

10 ‘‘(A) in subparagraph (A), by substituting 

11 ‘12 months’ for ‘6 months’; and 

12 ‘‘(B) in subparagraph (D), by substituting 

13 ‘12-month period’ for ‘6-month period’. 

14 ‘‘(2) NO ACCRUAL OF INTEREST.—Notwith15 standing any other provision of this part, interest 

16 shall not accrue on a Federal Direct Unsubsidized 

17 Stafford Loan during the 12-month period described 

18 in paragraph (1). 

19 ‘‘(s) EXTENSION OF CERTAIN DEFERMENT PERIOD

20 FOR FEDERAL DIRECT PLUS LOANS.— 

21 ‘‘(1) IN GENERAL.—With respect to Federal 

22 Direct PLUS Loans, section 428B(d)(1)(B) shall be 

23 applied— 

24 ‘‘(A) in the case of a parent borrower, in 

25 clause (i), by substituting ‘12-month period’ for 

26 ‘6-month period’; and 


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1 ‘‘(B) in the case of a graduate or profes2 sional student borrower, in clause (ii), by sub3 stituting ‘12-month period’ for ‘6-month pe4 riod’. 

5 ‘‘(2) NO ACCRUAL OF INTEREST.—Notwith6 standing any other provision of this part, interest 

7 shall not accrue on a Federal Direct PLUS Loan 

8 during the 12-month period described in paragraph 

9 (1).’’. 

10 (b) EFFECTIVE DATE AND APPLICATION.—The 

11 amendments made by this section shall take effect on the 

12 date of enactment of this Act, and shall apply with respect 

13 to— 

14 (1) Federal Direct Stafford Loans, Federal Di15 rect Unsubsidized Stafford Loans, and Federal Di16 rect PLUS Loans made on or after the date of en17 actment of this Act; and 

18 (2) Federal Direct Stafford Loans, Federal Di19 rect Unsubsidized Stafford Loans, and Federal Di20 rect PLUS Loans made before such date of enact21 ment to borrowers who have not yet entered repay22 ment on such loans on such date of enactment. 

Æ 


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