dent during any of the last 6 months of such 
taxable year. 
‘‘(4) DIRECT
IDEA
LOAN.—The term ‘direct 
IDEA loan’ has the meaning given such term by 
title I of the Income-Dependent Education Assist-
ance Act of 2007. Such term includes any loan 
which is treated as such under section 103 of such 
title. 
‘‘(e) PAYMENT OF AMOUNT OWING.—Any amount to 
be collected from an individual under this section shall be 
paid— 
‘‘(1) not later than the last date (determined 
without regard to extensions) prescribed for filing 
his return of tax imposed by chapter 1 for the tax-
able year ending before the date the notice under 
subsection (a) is sent, and 
‘‘(2)(A) if such return is filed not later than 
such date, with such return, or 
‘‘(B) in any case not described in subparagraph 
(A), in such manner as the Secretary may by regula-
tions prescribe. 
‘‘(f) FAILURE TO PAY AMOUNT OWING.—If an indi-
vidual fails to pay the full amount required to be paid on 
or before the last date described in subsection (e)(1), the 
Secretary shall assess and collect the unpaid amount in 
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the same manner, with the same powers, and subject to 
the same limitations applicable to a tax imposed by sub-
title C the collection of which would be jeopardized by 
delay. 
‘‘(g) LOANS OF DECEASED AND PERMANENTLY DIS-
ABLED BORROWERS; DISCHARGE BY SECRETARY.— 
‘‘(1) DISCHARGE IN THE EVENT OF DEATH.— 
If a borrower of a direct IDEA loan dies or becomes 
permanently and totally disabled (as determined in 
accordance with regulations of the Secretary), then 
the Secretary shall discharge the borrower’s liability 
on the loan. 
‘‘(2) LIMITATION
ON
DISCHARGE.—The dis-
charge of the liability of an individual under this 
subsection shall not discharge the liability of any 
spouse with respect to any direct IDEA loan made 
to such spouse. 
‘‘(h) CREDITING OF COLLECTIONS.— 
‘‘(1) IN
GENERAL.—For purposes of deter-
mining whether there is an underpayment or over-
payment of tax imposed by subtitle A for any tax-
able year by an individual who is required to pay an 
amount under this section, amounts withheld under 
chapter 24 and amounts paid under section 6654 
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shall be treated as payments of the amount required 
to be paid under this section to the extent thereof. 
‘‘(2) CREDITING OF AMOUNTS PAID ON A JOINT 
RETURN.—Amounts collected under this section on a 
joint return from a husband and wife both of whom 
are in repayment status shall be credited to the ac-
counts of such spouses in the following order: 
‘‘(A) First, to repayment of interest added 
to each account at the end of the preceding cal-
endar year in proportion to the interest so 
added to the respective accounts of the spouses. 
‘‘(B) Then, to repayment of unpaid prin-
cipal, and unpaid interest accrued before such 
preceding calendar year, in proportion to the re-
spective maximum account balances of the 
spouses. 
‘‘(i) SPECIAL RULES.— 
‘‘(1) EXCLUSION
FROM
INCOME
FOR
LOANS 
DISCHARGED.—No amount shall be includible in 
gross income by reason of the discharge under this 
section of any loan. 
‘‘(2) COMPUTATION OF ALTERNATIVE ANNUAL 
PAYMENT FOR INDIVIDUALS WHO HAVE ATTAINED 
AGE 55.—In the case of an individual who attains 
age 55 before the close of the calendar year ending 
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