I 
114TH CONGRESS 
1ST SESSION H. R. 3206 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
student loan indebtedness discharged in connection with closures of edu-
cational institutions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 23, 2015 
Mr. MCDERMOTT (for himself, Ms. FRANKEL of Florida, Ms. MOORE, Mr. 
VAN HOLLEN, Mr. CAPUANO, Ms. CLARK of Massachusetts, Mr. SCOTT 
of Virginia, Mr. TAKANO, Mr. CONYERS, Mr. SWALWELL of California, 
Mr. BLUMENAUER, Mr. GALLEGO, Mr. RANGEL, Mr. HONDA, Mr. ELLI-
SON, Ms. JUDY CHU of California, Mr. THOMPSON of California, Mr. 
MURPHY of Florida, Ms. WILSON of Florida, Mrs. TORRES, Mr. FARR, 
Mrs. NAPOLITANO, Ms. MAXINE
WATERS
of California, and Ms. 
BONAMICI) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
from gross income student loan indebtedness discharged 
in connection with closures of educational institutions, 
and for other purposes. 
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 ‘‘Student Tax Relief 
Act of 2015’’. 
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SEC. 2. EXCLUSION FROM GROSS INCOME OF STUDENT 
LOAN 
INDEBTEDNESS 
CANCELLED, 
DIS-
CHARGED, OR FORGIVEN. 
(a) IN GENERAL.—Section 108(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(5) DISCHARGES IN CONNECTION WITH STU-
DENT
LOAN
INDEBTEDNESS
CANCELLED, 
DIS-
CHARGED, OR FORGIVEN.— 
‘‘(A) IN
GENERAL.—Gross income shall 
not include— 
‘‘(i) any amount of a student loan dis-
charged in whole or in part pursuant to 
section 437(c) of the Higher Education 
Act of 1965 (20 U.S.C. 1087(c)) or by rea-
son of a defense asserted pursuant to sec-
tion 455(h) of such Act (20 U.S.C. 
1087e(h)), 
‘‘(ii) any amount of a loan discharged 
under section 464(g) of such Act (20 
U.S.C. 1087dd(g)), 
‘‘(iii) any amount of a loan, and inter-
est on a loan, which is canceled under sec-
tion 
465 
of 
such 
Act 
(20 
U.S.C. 
1087ee(a)(5)), or 
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‘‘(iv) any amount which (but for this 
subparagraph) would be includible in gross 
income by reason of the discharge (in 
whole or in part) of a loan to assist the at-
tendance at an institution of higher learn-
ing if such discharge was pursuant to an 
agreement with the Consumer Financial 
Protection Bureau or any other Federal 
agency in connection with the closure (or 
other agency action) relating to such insti-
tution or successor institution. 
‘‘(B) LIMITATION
ON
EXCLUSION.—Not-
withstanding any other provision of law, no 
amount shall be excluded from gross income 
after the date of the enactment of this para-
graph by a provision of the Higher Education 
Act of 1965.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendment made by subsection (a) 
shall apply with respect to any forgiveness of indebt-
edness after June 19, 2014. 
(2) LIMITATION.—Section 108(f)(5)(B) of the 
Internal Revenue Code of 1986, as added by sub-
section (a), shall apply to loans cancelled, dis-
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