Student Tax Relief Act

Bill: 114-s-3008
Sponsor: full_name: Sen. Stabenow, Debbie [D-MI]
Introduced: 2016-05-26
Policy area: Taxation
Subjects: Higher education

Income tax exclusion

Student aid and college costs
Latest action: action_date: 2016-05-26
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2016-05-26
action_desc: Introduced in Senate
text: <p><b>Student Tax Relief Act </b></p> <p>This bill amends the Internal Revenue Code to exclude from gross income the discharge of student loan debt after June 12, 2014, due to: (1) borrower defenses asserted pursuant to the Higher Education Act of 1965, or (2) an agreement with the Consumer Financial Protection Bureau or any other federal agency in connection with the closure or other agency action relating to an educational institution. </p>

tv_txt: II 114th CONGRESS 2d Session S. 3008 IN THE SENATE OF THE UNITED STATES May 26, 2016 Ms. Stabenow (for herself, Mrs. Shaheen , Mr. Reed , Ms. Baldwin , Mr. Coons , Mr. Peters , Mrs. Feinstein , and Mr. Merkley ) 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 exclude from gross income certain discharges of student loan indebtedness.

1. Short title This Act may be cited as the Student Tax Relief Act . 2. Exclusion from gross income of discharges of student loan indebtedness (a) 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 in connection with student loan indebtedness Gross income shall not include— (A) any amount of a student loan discharged in whole or in part by reason of a defense asserted pursuant to section 455(h) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(h) ), or (B) any amount which (but for this subparagraph) would be includible in gross income by reason of the discharge (in whole or in part) of a loan to assist the attendance at an institution of higher learning if such discharge was pursuant to an agreement with the Consumer Financial Protection Bureau or any other Federal agency in connection with the closure (or other agency action) relating to such institution or successor institution. . (b) Effective date The amendment made by subsection (a) shall apply with respect to any forgiveness of indebtedness after June 12, 2014.