[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2878 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2878

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.


_______________________________________________________________________


                   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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Tax Relief Act''.

SEC. 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.

SEC. 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.
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