Student Loan Tax Relief Act

Bill: 113-s-2878
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2014-09-18
Policy area: Taxation
Subjects: Disability and paralysis

Higher education

Income tax exclusion

Student aid and college costs
Latest action: action_date: 2014-09-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2014-09-18
action_desc: Introduced in Senate
text: <p>Student Loan Tax Relief Act - Amends the Internal Revenue Code to exclude from gross income income imputed from a discharge of student loan indebtedness based on repayments which are income contingent or income based or a discharge due to the death or total disability of the student.</p>

tv_txt: II 113th CONGRESS 2d Session S. 2878 IN THE SENATE OF THE UNITED STATES September 18, 2014 Mr. Menendez introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an exclusion from income for student loan forgiveness for students in certain income-based or income-contingent repayment programs who have completed payment obligations, and for other purposes.

1. Short title This Act may be cited as the Student Loan Tax Relief Act . 2. Certain student loans the repayment of which is income contingent or income-based (a) In general Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986 is amended by striking any student loan if and all that follows and inserting any student loan if— (A) such discharge was pursuant to a provision of such loan under which all or part of the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain professions for any of a broad class of employers, or (B) such discharge was pursuant to section 455(e) or section 493C(b)(7) of the Higher Education Act of 1965 (relating to income contingent and income-based repayment). . (b) Effective Date The amendment made by subsection (a) shall apply to discharges of loans after December 31, 2014. 3. Student loans discharged on account of death or disability (a) In general Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986, as amended by section 2, is amended by striking or at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , or , and by adding at the end the following new subparagraph: (C) such discharge was on account of the death or total and permanent disability of the student. . (b) Effective Date The amendment made by subsection (a) shall apply to discharges of loans after December 31, 2014.