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 Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation and the Workforce, 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 and the High-
er Education Act of 1965 to provide an exclusion from 
income for student loan forgiveness for students who 
have died or become disabled. 
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 ‘‘Stop Taxing Death 
and Disability Act’’. 
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SEC. 2. TREATMENT OF STUDENT LOANS DISCHARGED ON 
ACCOUNT OF DEATH OR DISABILITY. 
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN GENERAL.—Section 108(f) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(5) DISCHARGES ON ACCOUNT OF DEATH OR 
DISABILITY.— 
‘‘(A) 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 reasons of the 
discharge (in whole or in part) of any loan de-
scribed in subparagraph (B) if such discharge 
was— 
‘‘(i) pursuant to subsection (a) or (d) 
of section 437 of the Higher Education 
Act of 1965 or the parallel benefit under 
part D of title IV of such Act (relating to 
the repayment of loan liability), 
‘‘(ii) pursuant to section 464(c)(1)(F) 
of such Act, or 
‘‘(iii) otherwise discharged on account 
of the death or total and permanent dis-
ability of the student. 
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‘‘(B) LOANS DESCRIBED.—A loan is de-
scribed in this subparagraph if such loan is— 
‘‘(i) a student loan (as defined in 
paragraph (2)), or 
‘‘(ii) a private education loan (as de-
fined in section 140(7) of the Consumer 
Credit 
Protection 
Act 
(15 
U.S.C. 
1650(7))).’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this section shall apply to discharges of loans be-
fore, on, or after the date of the enactment of this 
Act. 
(b) AMENDMENT TO THE HIGHER EDUCATION ACT 
OF 1965.—Section 437(d) of the Higher Education Act 
of 1965 (20 U.S.C. 1087(d)) is amended by inserting ‘‘or 
becomes permanently and totally disabled (as determined 
in accordance with regulations of the Secretary), or if the 
student is unable to engage in any substantial gainful ac-
tivity by reason of any medically determinable physical or 
mental impairment that can be expected to result in death, 
has lasted for a continuous period of not less than 60 
months, or can be expected to last for a continuous period 
of not less than 60 months’’ after ‘‘dies’’. 
Æ 
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