[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5617 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5617

To amend the Internal Revenue Code of 1986 to exclude from gross income 
              any discharge of student loan indebtedness.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 2016

Mr. Pocan (for himself, Mr. Nolan, Ms. Wilson of Florida, Mr. Grijalva, 
  Mr. Takano, Mr. McDermott, Ms. Norton, Ms. Moore, Ms. Bonamici, Mr. 
  Sarbanes, Mr. Hinojosa, Mr. Ellison, Mr. McGovern, Mr. DeFazio, Ms. 
 Velazquez, and Mr. Scott of Virginia) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
              any discharge of student loan indebtedness.

    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 ``Underwater Student Borrowers Act''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISCHARGE OF STUDENT LOAN 
              INDEBTEDNESS.

    (a) In General.--Paragraph (1) of section 108(f) 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 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 if such 
        discharge was pursuant to--
                    ``(A) 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,
                    ``(B) subsections (d)(1)(D) and (e)(7) of section 
                455 or section 493C(b)(7) of the Higher Education Act 
                of 1965 (relating to income contingent and income-based 
                repayment, respectively),
                    ``(C) section 437 of the Higher Education Act of 
                1965, or
                    ``(D) subsections (c)(1)(F) and (g) of section 464 
                of the Higher Education Act of 1965.''.
    (b) Student Loans.--Paragraph (2) of section 108(f) of such Code is 
amended by striking ``made by--'' and all that follows and inserting 
the following: ``. Such term includes indebtedness used to refinance 
indebtedness which qualifies as a student loan under the preceding 
sentence.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness after the date of the enactment of 
this Act.
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