IB 
Union Calendar No. 674 
114TH CONGRESS 
2D SESSION 
H. R. 5204 
[Report No. 114–861, Part I] 
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 
DECEMBER 8, 2016 
Additional sponsors: Mr. LAMALFA, Mr. RENACCI, Mr. PASCRELL, Mr. SEAN 
PATRICK MALONEY of New York, Mr. REICHERT, Mr. HULTGREN, Mr. 
COFFMAN, Mr. DESAULNIER, Mr. BRAT, Mr. PERLMUTTER, Mr. MEE-
HAN, Mr. MCNERNEY, Mr. POLIQUIN, and Ms. BONAMICI 
DECEMBER 8, 2016 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 8, 2016 
The Committee on Education and the Workforce discharged; committed to the 
Committee of the Whole House on the State of the Union and ordered 
to be printed 
[For text of introduced bill, see copy of bill as introduced on May 12, 2016] 
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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. 
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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’’. 
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 Internal 
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 dis-
charge (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 
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of title IV of such Act (relating to the re-
payment 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. 
‘‘(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 indebtedness 
after December 31, 2016. 
(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 accord-
ance with regulations of the Secretary), or if the student 
is unable to engage in any substantial gainful activity by 
reason of any medically determinable physical or mental 
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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’’. 
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