Income-Based Repayment Debt Forgiveness Act

Bill: 114-s-1947
Sponsor: full_name: Sen. Merkley, Jeff [D-OR]
Introduced: 2015-08-05
Policy area: Taxation
Subjects: Higher education

Income tax exclusion

Student aid and college costs
Latest action: action_date: 2015-08-05
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2015-08-05
action_desc: Introduced in Senate
text: <p><strong>Income-Based Repayment Debt Forgiveness Act</strong></p> <p>Amends the Internal Revenue Code to exclude from gross income, for income tax purposes, income imputed from the discharge of student loan indebtedness pursuant to a federal program that provides for income contingent or income-based repayment of such loan. </p>

tv_txt: II 114th CONGRESS 1st Session S. 1947 IN THE SENATE OF THE UNITED STATES August 5, 2015 Mr. Merkley introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To exclude the discharge of certain Federal student loans from the calculation of gross income.

1. Short title This Act may be cited as the Income-Based Repayment Debt Forgiveness Act . 2. Forgiveness of certain Federal student loans excluded from income tax (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) in the case of a loan made by the United States or an instrumentality or agency thereof, such discharge was pursuant to any Federal program or provision of Federal law which provides for income contingent or income-based repayment of such loan. . (b) Effective Date The amendment made by subsection (a) shall apply to discharges of loans that occur on or after July 1, 2016.