I 
117TH CONGRESS 
1ST SESSION H. R. 1564 
To amend the Internal Revenue Code of 1986 to exclude from taxable income 
any student loan forgiveness or discharge. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2021 
Mr. GOMEZ (for himself and Mr. PASCRELL) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
from taxable income any student loan forgiveness or 
discharge. 
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 Loan Tax Re-
lief Act’’. 
SEC. 2. MODIFICATION OF TREATMENT OF STUDENT LOAN 
FORGIVENESS. 
(a) IN GENERAL.—Section 108(f) of the Internal 
Revenue Code of 1986 is amended— 
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(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(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 reasons of the discharge (in whole 
or in part) of— 
‘‘(A) any loan provided expressly for post-
secondary educational expenses, regardless of 
whether provided through the educational insti-
tution or directly to the borrower, if such loan 
was made, insured, or guaranteed by— 
‘‘(i) the United States, or an instru-
mentality or agency thereof, 
‘‘(ii) a State, territory, or possession 
of the United States, or the District of Co-
lumbia, or any political subdivision thereof, 
or 
‘‘(iii) any institution of higher edu-
cation, 
‘‘(B) any private education loan (as de-
fined in section 140(a)(7) of the Truth in Lend-
ing Act), 
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‘‘(C) any loan made by any educational or-
ganization described in section 170(b)(1)(A)(ii) 
if such loan is made— 
‘‘(i) pursuant to an agreement with 
any entity described in subparagraph (A) 
or any private education lender (as defined 
in section 140(a) of the Truth in Lending 
Act) under which the funds from which the 
loan was made were provided to such edu-
cational organization, or 
‘‘(ii) pursuant to a program of such 
educational organization which is designed 
to encourage its students to serve in occu-
pations with unmet needs or in areas with 
unmet needs and under which the services 
provided by the students (or former stu-
dents) are for or under the direction of a 
governmental unit or an organization de-
scribed in section 501(c)(3) and exempt 
from tax under section 501(a), or 
‘‘(D) any loan made by an educational or-
ganization described in section 170(b)(1)(A)(ii) 
or by an organization exempt from tax under 
section 501(a) to refinance a loan to an indi-
vidual to assist the individual in attending any 
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such educational organization but only if the re-
financing loan is pursuant to a program of the 
refinancing organization which is designed as 
described in subparagraph (C)(ii).’’, 
(2) by striking paragraph (5), 
(3) by redesignating paragraphs (3) and (4) as 
paragraphs (2) and (3), respectively, and 
(4) in paragraph (2), as so redesignated, by— 
(A) striking ‘‘made by an organization de-
scribed in paragraph (2)(D)’’ and inserting 
‘‘made by an organization described in para-
graph (1)(C) or made by a private education 
lender (as defined in section 140(a)(7) of the 
Truth in Lending Act)’’, and 
(B) inserting ‘‘or for such private edu-
cation lender’’ after ‘‘either such organization’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of loans after Janu-
ary 31, 2020. 
Æ 
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