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 indebted-
ness. 
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 with-
in 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 contin-
gent or income-based student loan indebtedness. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Students and Families 
Empowerment Act’’. 
VerDate Sep 11 2014 
00:51 Mar 30, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1798.IH
H1798
kjohnson on DSK79L0C42 with BILLS
SEC. 2. INCREASE IN DEDUCTION FOR STUDENT LOAN IN-
TEREST. 
(a) DOLLAR LIMITATION AND LIMITATION BASED ON 
INCOME REPLACED WITH LIMITATION ON AGGREGATE 
EDUCATION INDEBTEDNESS THAT MAY BE TAKEN INTO 
ACCOUNT.—Section 221(b) of the Internal Revenue Code 
of 1986 is amended to read as follows: 
‘‘(b) LIMITATION ON AGGREGATE EDUCATION IN-
DEBTEDNESS THAT MAY BE TAKEN INTO ACCOUNT.— 
The aggregate amount taken into account under sub-
section (a) as qualified education loans for any period shall 
not exceed $750,000 (twice such amount in the case of 
a joint return).’’. 
(b) CONFORMING AMENDMENTS.—Section 221 of 
such Code is amended by striking subsections (e) and (f) 
(relating to special rules and inflation adjustments, re-
spectively) and inserting the following new subsection: 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under this section for any amount for 
which a deduction is allowable under any other provision 
of this chapter.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
00:51 Mar 30, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1798.IH
H1798
kjohnson on DSK79L0C42 with BILLS
SEC. 3. EXCLUSION FROM GROSS INCOME FOR DISCHARGE 
OF 
INCOME 
CONTINGENT 
AND 
INCOME- 
BASED STUDENT LOAN INDEBTEDNESS. 
(a) IN GENERAL.—Paragraph (1) of section 108(f) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) IN
GENERAL.—In the case of an indi-
vidual, gross income does not include any amount 
which (but for this subsection) would be includible in 
gross income by reason of the discharge (in whole or 
in part) of any student loan if such discharge was 
pursuant to— 
‘‘(A) a provision of such loan under which 
all or part of the indebtedness of the individual 
would be discharged if the individual worked for 
a certain period of time in certain professions 
for any of a broad class of employers, or 
‘‘(B) subsections (d)(1)(D) and (e)(7) of 
section 455 or section 493C(b)(7) of the Higher 
Education Act of 1965 (relating to income con-
tingent and income-based repayment, respec-
tively).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of indebtedness after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
00:51 Mar 30, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1798.IH
H1798
kjohnson on DSK79L0C42 with BILLS
SEC. 4. GRACE PERIOD EXTENSION. 
(a) IN GENERAL.—Section 455 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e) is amended by add-
ing at the end the following: 
‘‘(r) GRACE PERIOD EXTENSION.— 
‘‘(1) IN GENERAL.—With respect to the Federal 
Direct Stafford Loans and Federal Direct Unsub-
sidized Stafford Loans, section 487(b)(7) shall be 
applied— 
‘‘(A) in subparagraph (A), by substituting 
‘12 months’ for ‘6 months’; and 
‘‘(B) in subparagraph (D), by substituting 
‘12-month period’ for ‘6-month period’. 
‘‘(2) NO
ACCRUAL
OF
INTEREST.—Notwith-
standing any other provision of this part, interest 
shall not accrue on a Federal Direct Unsubsidized 
Stafford Loan during the 12-month period described 
in paragraph (1). 
‘‘(s) EXTENSION OF CERTAIN DEFERMENT PERIOD 
FOR FEDERAL DIRECT PLUS LOANS.— 
‘‘(1) IN
GENERAL.—With respect to Federal 
Direct PLUS Loans, section 428B(d)(1)(B) shall be 
applied— 
‘‘(A) in the case of a parent borrower, in 
clause (i), by substituting ‘12-month period’ for 
‘6-month period’; and 
VerDate Sep 11 2014 
00:51 Mar 30, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1798.IH
H1798
kjohnson on DSK79L0C42 with BILLS
‘‘(B) in the case of a graduate or profes-
sional student borrower, in clause (ii), by sub-
stituting ‘12-month period’ for ‘6-month pe-
riod’. 
‘‘(2) NO
ACCRUAL
OF
INTEREST.—Notwith-
standing any other provision of this part, interest 
shall not accrue on a Federal Direct PLUS Loan 
during the 12-month period described in paragraph 
(1).’’. 
(b) EFFECTIVE
DATE
AND
APPLICATION.—The 
amendments made by this section shall take effect on the 
date of enactment of this Act, and shall apply with respect 
to— 
(1) Federal Direct Stafford Loans, Federal Di-
rect Unsubsidized Stafford Loans, and Federal Di-
rect PLUS Loans made on or after the date of en-
actment of this Act; and 
(2) Federal Direct Stafford Loans, Federal Di-
rect Unsubsidized Stafford Loans, and Federal Di-
rect PLUS Loans made before such date of enact-
ment to borrowers who have not yet entered repay-
ment on such loans on such date of enactment. 
Æ 
VerDate Sep 11 2014 
00:51 Mar 30, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H1798.IH
H1798
kjohnson on DSK79L0C42 with BILLS