[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 914 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 914

    To amend the Internal Revenue Code of 1986 with respect to the 
  discharge, or repayment, of student loans of students who agree to 
                perform services in certain professions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 6 (legislative day, April 19), 1993

  Mr. Bumpers (for himself and Mr. Danforth) 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 with respect to the 
  discharge, or repayment, of student loans of students who agree to 
                perform services in certain professions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF DISCHARGE OR REPAYMENT OF STUDENT LOANS.

    (a) Discharge of Indebtedness.--
            (1) Organizations making loans to which discharge rules 
        apply.--Paragraph (2) of section 108(f) of the Internal Revenue 
        Code of 1986 is amended by striking ``or'' at the end of 
        subparagraph (C), and by striking subparagraph (D) and 
        inserting:
                    ``(D) any bank (as defined in section 581) or any 
                financial institution to which section 593 applies; or
                    ``(E) any educational organization described in 
                section 170(b)(1)(A)(ii), including loans pursuant to 
                an agreement with any entity described in subparagraph 
                (A), (B), (C), or (D) under which the funds from which 
                the loan was made were provided to such educational 
                organization.''.
            (2) Loans to repay other loans to qualify.--Section 
        108(f)(2) of such Code is amended by inserting ``, or any loan 
        to such individual by such organization or an organization 
        described in section 501(a) which is exempt from tax under 
        section 501(c) to repay such a loan,'' after ``section 
        170(b)(1)(A)(ii)''.
    (b) Conditions for Exclusion.--Section 108(f)(1) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) In general.--In the case of an individual, gross 
        income does not include--
                    ``(A) any amount which (but for this subsection) 
                would be includible in gross income by reason of the 
                discharge (in whole or in part) of any student loan, or
                    ``(B) the repayment of a student loan by an 
                educational organization described in section 
                170(b)(1)(A)(ii) or an organization described in 
                section 501(a) which is exempt from tax under section 
                501(c),
        if such discharge or repayment was pursuant to a provision of 
        such loan or a program under which all or part of such loan 
        would be discharged or repaid if such individual is employed 
        (during or after enrollment as a student at such educational 
        organization) for a certain period of time in certain 
        professions related to the education provided to the individual 
        by the educational organization and for any of a broad class of 
        employers. Subparagraph (B) shall not apply if the employment 
        described in the preceding sentence is with the organization 
        repaying the student loan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any discharge, or repayment, of a student loan after the date 
of the enactment of this Act, in taxable years ending after such date.

                                 <all>