Clarity in Lending for Education and Repayment Act or the CLEAR Act
This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to revise federal student loan repayment plan options for new borrowers of Direct Loan (DL) program loans issued on or after July 1, 2016.
Specifically, the bill terminates several existing repayment plan options, including the graduated, extended, income-contingent, and income-based repayment plans. It retains the existing standard repayment plan and establishes a new revised pay-as-you-earn repayment plan that, among other things, caps monthly payments at 10% of discretionary income and sets a 20-year maximum repayment period.
A new borrower of a DL program subsidized Stafford, unsubsidized Stafford, PLUS, or consolidation loan issued on or after July 1, 2016, must enroll in the standard or revised pay-as you earn repayment plan.
The Department of Education must consult with students, family members, institutions of higher education, and other experts to improve the required disclosures with respect to federal Direct Loans.
Finally, the bill amends the Internal Revenue Code to exclude from an individual's gross income the amount of federal student loans discharged due to the death or disability of the student.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4652 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 4652
To amend the Higher Education Act of 1965 to codify the Revised Pay As
You Earn Repayment plan, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 29, 2016
Mr. Takai (for himself, Ms. Judy Chu of California, Mr. Honda, Ms.
Norton, Mr. Brady of Pennsylvania, Ms. Clarke of New York, Mr. Brendan
F. Boyle of Pennsylvania, Ms. Moore, Mr. Pallone, Ms. Lee, Mr. Ted Lieu
of California, Mrs. Watson Coleman, Mr. Nolan, Ms. Schakowsky, Mr.
Rangel, and Ms. Jackson Lee) introduced the following bill; which was
referred to the Committee on Education and the Workforce, and in
addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to codify the Revised Pay As
You Earn Repayment plan, 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 ``Clarity in Lending for Education and
Repayment Act'' or the ``CLEAR Act''.
SEC. 2. STREAMLINING REPAYMENT PLANS FOR NEW BORROWERS.
Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e)
is amended by striking subsection (d) and inserting the following:
``(d) Repayment Plans.--
``(1) Design and selection for borrowers before july 1,
2016.--With respect to a borrower of a loan made under this
part before July 1, 2016, and consistent with criteria
established by the Secretary, the Secretary shall offer such
borrower a variety of plans for repayment of such loan,
including principal and interest on the loan. The borrower
shall be entitled to accelerate, without penalty, repayment on
the borrower's loans under this part. The borrower may choose--
``(A) a standard repayment plan, consistent with
subsection (a)(1) of this section and with section
428(b)(9)(A)(i);
``(B) a graduated repayment plan, consistent with
section 428(b)(9)(A)(ii);
``(C) an extended repayment plan, consistent with
section 428(b)(9)(A)(iv), except that the borrower
shall annually repay a minimum amount determined by the
Secretary in accordance with section 428(b)(1)(L);
``(D) an income contingent repayment plan, with
varying annual repayment amounts based on the income of
the borrower, paid over an extended period of time
prescribed by the Secretary, not to exceed 25 years,
except that the plan described in this subparagraph
shall not be available to the borrower of a Federal
Direct PLUS loan made on behalf of a dependent student;
and
``(E) an income-based repayment plan that enables
borrowers who have a partial financial hardship to make
a lower monthly payment in accordance with section
493C, except that the plan described in this
subparagraph shall not be available to the borrower of
a Federal Direct PLUS Loan made on behalf of a
dependent student or a Federal Direct Consolidation
Loan, if the proceeds of such loan were used to
discharge the liability on such Federal Direct PLUS
Loan or a loan under section 428B made on behalf of a
dependent student.
``(2) Design and selection for new borrowers on or after
july 1, 2016.--The Secretary shall offer a borrower of a loan
made under this part on or after July 1, 2016, the following
plans for repayment of such loan, including principal and
interest on the loan. The borrower shall be entitled to
accelerate, without penalty, repayment on the borrower's loans
under this part. The borrower may choose--
``(A) a standard repayment plan, consistent with
subsection (a)(1) of this section and with section
428(b)(9)(A)(i); or
``(B) a revised pay-as-you-earn repayment plan,
consistent with section 461, except the plan described
in this subparagraph shall not be available to a
borrower of a Federal Direct PLUS Loan made on behalf
of a dependent student, a Federal Direct Consolidation
Loan, if the proceeds of such loan were used to
discharge the liability on such Federal Direct PLUS
Loan or a loan under section 428B made on behalf of a
dependent student.
``(3) Borrower non-selection.--If a borrower of a loan made
under this part does not select a repayment plan described in
paragraph (1) or (2), the Secretary may provide the borrower
with a repayment plan described in subparagraph (A), (B), or
(C) of paragraph (1) for borrowers before July 1, 2016, or a
repayment plan described in paragraph (2)(A) for new borrowers
on or after July 1, 2016.
``(4) Changes in selections.--The borrower of a loan made
under this part may change the borrower's selection of a
repayment plan under paragraph (1) or (2), or the Secretary's
selection of a plan for the borrower under paragraph (3), as
the case may be, under such terms and conditions as may be
established by the Secretary.
``(5) Alternative repayment plans.--The Secretary may
provide, on a case by case basis, an alternative repayment plan
to a borrower of a loan made under this part on or after July
1, 2016, who demonstrates to the satisfaction of the Secretary
that the terms and conditions of the repayment plans available
under paragraph (2) are not adequate to accommodate the
borrower's exceptional circumstances. Upon request, the
Secretary shall make available for such borrowers repayment
plans described in subparagraphs (B) and (C) of paragraph (1).
In designing such alternative repayment plans, the Secretary
shall ensure that such plans do not exceed the cost to the
Federal Government, as determined on the basis of the present
value of future payments by such borrowers, of loans made using
the plans available under paragraph (2).
``(6) Repayment after default.--For any borrower who has
defaulted on a loan made under this part, the Secretary--
``(A) may require the borrower to pay all
reasonable collection costs associated with such loan;
and
``(B) if such loan was made--
``(i) to any borrower who, before July 1,
2016, had an outstanding balance on a student
loan made, insured, or guaranteed under this
part or part B, may require the borrower to
repay the loan pursuant to an income contingent
repayment plan, as described in paragraph
(1)(D), or an income-based repayment plan, as
described in paragraph (1)(E); or
``(ii) to a new borrower (as defined in
section 493E(a)(5)), may provide the borrower
the option to enroll in the repayment plan
described in paragraph (2)(B).
``(7) Applicability provision.--
``(A) In general.--Except as provided in paragraph
(5) and subparagraph (B), the repayment plans under
subparagraphs (B), (C), (D), and (E) of paragraph (1)
are not available for a borrower who received the
borrower's first disbursement of a Federal Direct Loan
on or after July 1, 2016.
``(B) Exception.--The repayment plans available to
a borrower of a Federal Direct PLUS Loan made on behalf
of a dependent student or a Federal Direct
Consolidation Loan whose proceeds were used to
discharge the liability of a Federal Direct PLUS Loan
made on behalf of a dependent student or a loan under
section 428B made on behalf of a dependent student on
or after July 1, 2016, shall be those described under
subparagraphs (A), (B), and (C) of paragraph (1).''.
SEC. 3. REPAYE.
Part D of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087a et seq.) is amended by adding at the end the following:
``SEC. 461. REPAYE.
``(a) Definitions.--
``(1) Covered federal direct loan.--The term `covered
Federal Direct Loan' means a Federal Direct Stafford Loan, a
Federal Direct Unsubsidized Stafford Loan, a Federal Direct
Consolidation Loan (other than an excepted consolidation loan),
or a Federal Direct PLUS Loan (other than an excepted plus
loan) made under this part.
``(2) New borrower.--The term `new borrower' means a
borrower who--
``(A) as of July 1, 2016, has no outstanding
balance on a student loan made, insured, or guaranteed
under part B or D; or
``(B) has no outstanding balance on a student loan
made, insured, or guaranteed under part B or D on the
date the borrower receives a loan made under part D on
or after July 1, 2016.
``(3) Excepted plus loan; excepted consolidation loan.--The
terms `excepted plus loan' and `excepted consolidation loan'
have the meanings given such terms in section 493C.
``(4) Income-driven calculation.--
``(A) In general.--The term `income-driven
calculation'--
``(i) when used with respect to an
unmarried borrower 10 percent of the result
obtained by calculating, on at least an annual
basis, the amount by which--
``(I) the borrower's adjusted gross
income, as defined by the Secretary;
exceeds
``(II) 150 percent of the poverty
line applicable to the borrower's
family size as determined under section
673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)); and
``(ii) subject to subparagraph (B), when
used with respect to a married borrower--
``(I) the difference between the
borrower's and borrower's spouse's
adjusted gross income, as defined by
the Secretary; exceeds
``(II) 150 percent of the poverty
line applicable to the borrower's
family size as determined under section
673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)).
``(B) Exception for certain married borrowers.--The
income-driven calculation under subparagraph (A)(i)
shall apply to a married borrower who certifies, on a
form approved by the Secretary that the borrower is--
``(i) separated from the borrower's spouse;
or
``(ii) unable to reasonably access the
income information of the borrower's spouse.
``(b) Revised Pay As You Earn Repayment Plan Authorized.--
Notwithstanding any other provision of this Act, the Secretary shall
carry out a program for new borrowers that meets the following
requirements:
``(1) Monthly payment amount.--Except as otherwise provided
in this subsection, a new borrower of any covered Federal
Direct Loan may elect to have the borrower's aggregate monthly
payment for all such loans not to exceed the result of the
income-driven calculation divided by 12.
``(2) Adjusted monthly payment amount.--The Secretary
adjusts the aggregate monthly payment under paragraph (1), if--
``(A) in addition to covered Federal Direct Loans,
the borrower has an outstanding loan made under part B
(other than an excepted PLUS Loan or an excepted
consolidation loan), in which case the Secretary
determines the borrower's adjusted monthly payment by
multiplying the aggregate monthly payment by the
percentage of the total outstanding principal amount of
the borrower's covered Federal Direct Loans;
``(B) the borrower and borrower's spouse have
covered Federal Direct Loans and outstanding loans
under part B (other than an excepted PLUS Loan or an
excepted consolidation loan), in which case the
Secretary determines--
``(i) each borrower's percentage of the
couple's total outstanding amount of principal
on such loans;
``(ii) the adjusted monthly payment for
each borrower by multiplying the borrower's
aggregate monthly payment by the percentage
determined under clause (i) applicable to the
borrower; and
``(iii) if the borrower's loans are held by
multiple holders, the borrower's adjusted
monthly payment for covered Federal Direct
Loans by multiplying the adjusted monthly
payment determined under clause (ii) by the
percentage of the total outstanding principal
amount of the borrower's covered Federal Direct
Loans;
``(C) the calculated monthly payment amount under
paragraph (1) or this paragraph is less than $5.00, in
which case the borrower's monthly payment is $0.00; or
``(D) the calculated monthly payment amount under
paragraph (1) or this paragraph or is equal to or
greater than $5.00 but less than $10.00, in which case
the borrower's monthly payment is $10.00.
``(3) Accrued interest.--
``(A) In general.--If the borrower's monthly
payment amount under paragraph (1) or (2) is not
sufficient to pay the accrued interest on the
borrower's loan--
``(i) for a Federal Direct Stafford Loan or
the portion of a Federal Direct Consolidation
Loan attributable to a Federal Direct Stafford
Loan--
``(I) the Secretary does not charge
the borrower the remaining accrued
interest for a period not to exceed 3
consecutive years beginning at the
start of repayment period on such loan
under this repayment plan; and
``(II) after the three-year period,
the Secretary charges the borrower 50
percent of the remaining accrued
interest on such loan or such portion
of a Federal Direct Consolidation Loan;
and
``(ii) for a Federal Direct Unsubsidized
Stafford Loan, a Federal Direct PLUS Loan made
to a graduate or professional student, or the
portion of a Federal Direct Consolidation Loan
attributable to a Federal Direct Unsubsidized
Stafford Loan, or for a Federal Direct
Subsidized Loan or the portion of a Federal
Direct Consolidation Loan attributable to a
Federal Direct Stafford Loan for which the
borrower has become responsible for accruing
interest in accordance with section 455(q)(2),
the Secretary charges the borrower 50 percent
of the remaining accrued interest.
``(B) Three-year period defined.--The three-year
period described in subparagraph (A)(i) does not
include any period during which the borrower receives
an economic hardship deferment.
``(C) Capitalization of accrued interest.--
``(i) Timing.--Accrued interest is
capitalized at the time a borrower leaves the
program under this section.
``(ii) Capitalization.--
``(I) Limitation.--The amount of
accrued interest capitalized under
clause (i)(I) is limited to 10 percent
of the original principal balance at
the time the borrower entered repayment
under the plan under this section.
``(II) Participation.--After the
amount of accrued interest reaches the
limit described in subclause (I),
interest continues to accrue, but is
not capitalized while the borrower
participates in the plan under this
section.
``(4) Postponement of principal payment.--If the borrower's
monthly payment amount is not sufficient to pay any of the
principal due, the payment of that principal is postponed until
the borrower leaves the plan under this section.
``(5) Selection of different repayment plan.--A borrower
who no longer wishes to repay under the plan under this section
may change to a standard repayment plan in accordance with
section 455(d)(3).
``(6) Payment application and prepayment.--
``(A) In general.--The Secretary applies any
payment made under the program under this section in
the following order:
``(i) Accrued interest.
``(ii) Collection costs.
``(iii) Late charges.
``(iv) Loan principal.
``(B) Prepayment authorized.--The borrower may
prepay all or part of a loan at any time without
penalty, as authorized under section 455(d)(1).
``(C) Application of prepayment.--If the prepayment
amount equals or exceeds--
``(i) a monthly payment amount of $10.00 or
more under the repayment schedule established
for the loan, the Secretary applies the
prepayment consistent with the requirements of
section 455(d)(1); or
``(ii) a monthly payment amount of $0.00
under the repayment schedule established for
the loan, the Secretary applies the prepayment
consistent with the requirements of
subparagraph (A).
``(7) Eligibility documentation, verification, and
notifications.--
``(A) Documentation.--
``(i) AGI.--The Secretary requires the
borrower to provide documentation, acceptable
to the Secretary, of the borrower's adjusted
gross income.
``(ii) Other documentation.--If the
borrower's adjusted gross income is not
available, or if the Secretary believes that
the borrower's reported adjusted gross income
does not reasonably reflect the borrower's
current income, the borrower must provide other
documentation to verify income.
``(iii) Family size.--Unless otherwise
directed by the Secretary, the borrower must
annually certify the borrower's family size. If
the borrower fails to certify family size, the
Secretary assumes a family size of one for the
applicable year.
``(B) Notifications.--
``(i) In general.--Each year that the
borrower participates in the program under this
section, the Secretary sends the borrower a
written notification that provides the borrower
with--
``(I) the borrower's monthly
payment amount, as calculated under
paragraph (1) or (2), and the time
period during which such monthly
payment amount will apply (annual
payment period);
``(II) information about the
requirement for the borrower to
annually provide the information
described in subparagraph (A), and an
explanation that the borrower will be
notified in advance of the date by
which the Secretary must receive this
information;
``(III) an explanation of the
consequences, as described under
subparagraph (E), if the borrower does
not provide the required information;
and
``(IV) information about the
borrower's option to request, at any
time during the borrower's annual
payment period, that the Secretary
recalculate the borrower's monthly
payment amount if the borrower's
financial circumstances have changed
and the income amount that was used to
calculate the borrower's current
monthly payment no longer reflects the
borrower's current income.
``(ii) Recalculation.--If the Secretary
recalculates the borrower's monthly payment
amount based on the borrower's request, the
Secretary sends the borrower a written
notification that includes the information
described in this subparagraph.
``(C) Subsequent years.--
``(i) In general.--For each year following
the first year in which a borrower
participating in the plan under this section,
the Secretary notifies the borrower in writing
of the requirements of subparagraph (A) not
later than 60 days and not earlier than 90 days
prior to the date specified in clause (ii)(I).
``(ii) Contents.--The notification under
clause (i) shall provide the borrower with--
``(I) the date, no earlier than 35
days before the end of the borrower's
annual payment period, by which the
Secretary must receive all of the
documentation described in subparagraph
(A) (annual deadline); and
``(II) the consequences if the
Secretary does not receive the
information within 10 days following
the annual deadline specified in the
notice, as described under subparagraph
(E).
``(D) No documentation provided.--If a borrower who
is currently repaying under the standard repayment plan
elects the plan under this section but does not provide
the documentation described in subparagraph (A), the
borrower remains on such standard repayment plan.
``(E) Alternate repayment plan.--
``(i) In general.--If a borrower who is
currently repaying under the plan under this
section elects to participate in such program
for a subsequent year but the Secretary does
not receive the documentation described in
subparagraph (A) not later than 10 days after
the specified annual deadline, the Secretary
removes the borrower from the plan and places
the borrower on an alternative repayment plan
under which the borrower's required monthly
payment is the amount necessary to repay the
borrower's eligible loans in full within the
earlier of--
``(I) 10 years from the date the
borrower begins repayment under the
alternative repayment plan; or
``(II) the ending date of the 20-
year period as described in paragraph
(8)(A)(i)(II).
``(ii) Notification.--If the Secretary
places the borrower on an alternative repayment
plan in accordance with clause (i), the
Secretary sends the borrower a written
notification informing the borrower that--
``(I) the borrower has been placed
on an alternative repayment plan;
``(II) the borrower's monthly
payment amount has been recalculated
under clause (i); and
``(III) the borrower may change to
the standard repayment plan in
accordance with section 455(d)(3).
``(iii) Return to program.--A borrower who
has been removed from the plan under this
section or changes to the standard repayment
plan may return to the plan under this section
if the borrower provides the documentation
under subparagraph (A), necessary for the
Secretary to calculate the borrower's current
monthly payment amount and the monthly amount
the borrower would have been required to pay
under the plan during the period when the
borrower was on the alternative repayment plan
or the standard repayment plan.
``(iv) Adjustment of monthly payment
amount.--If the Secretary determines that the
total amount of the payments the borrower was
required to make while on the alternative
repayment plan or the standard repayment plan
are less than the total amount the borrower
would have been required to make under the
program during that period, the Secretary will
adjust the borrower's monthly payment amount to
ensure that the difference between the two
amounts is paid in full by the end of the 20-
year period described in paragraph
(8)(A)(i)(II).
``(v) Application of loan forgiveness.--If
the borrower returns to the plan under this
section, any payments that the borrower made
under the alternative repayment plan after the
borrower was removed from the plan shall count
towards forgiveness under the plan under this
section.
``(vi) PSLF.--Payments made under the
alternative repayment plan described in clause
(i) will not count towards public service loan
forgiveness under section 455(m).
``(vii) Exception.--The Secretary does not
take the action described in clause (i) if the
Secretary receives the documentation described
in subparagraph (A) more than 10 days after the
specified annual deadline, but is able to
determine the borrower's new monthly payment
amount before the end of the borrower's current
annual payment period.
``(viii) Monthly payment amount.--If the
Secretary receives the documentation described
in subparagraph (A) within 10 days of the
specified annual deadline--
``(I) the Secretary promptly
determines the borrower's new scheduled
monthly payment amount and maintains
the borrower's current scheduled
monthly payment amount until the new
scheduled monthly payment amount is
determined;
``(II) if the new monthly payment
amount is less than the borrower's
previously calculated plan monthly
payment amount, and the borrower made
payments at the previously calculated
amount after the end of the most recent
annual payment period--
``(aa) the Secretary makes
the appropriate adjustment to
the borrower's account; and
``(bb) unless the borrower
requests otherwise, the
Secretary applies the excess
payment amounts made after the
end of the most recent annual
payment period in accordance
with the requirements of
paragraph (6)(A);
``(III) if the new monthly payment
amount is equal to or greater than the
borrower's previously calculated
monthly payment amount, and the
borrower made payments at the
previously calculated payment amount
after the end of the most recent annual
payment period, the Secretary does not
make any adjustment to the borrower's
account;
``(IV) any payments that the
borrower continued to make at the
previously calculated payment amount
after the end of the prior annual
payment period and before the new
monthly payment amount is calculated
are considered to be qualifying
payments for purposes of public service
loan forgiveness under section 455(m),
provided that the payments otherwise
meet the requirements described in such
section 455(m); and
``(V) the new annual payment period
begins on the day after the end of the
most recent annual payment period.
``(8) Loan forgiveness.--
``(A) In general.--
``(i) Cancellation.--The Secretary cancels
any remaining outstanding balance of principal
and accrued interest on a borrower's covered
Federal Direct Loans that are being repaid
under the plan under this section after--
``(I) the borrower has made the
equivalent of 240 qualifying monthly
payments as defined in subparagraph
(B); and
``(II) 20 years have elapsed,
beginning on the date determined in
accordance with subparagraph (C).
``(ii) Determination.--The Secretary
determines when a borrower has met the loan
forgiveness requirements under clause (i) and
does not require the borrower to submit a
request for loan forgiveness.
``(B) Qualifying monthly payment defined.--
``(i) In general.--For purposes of this
paragraph, a qualifying monthly payment is--
``(I) a monthly payment under the
plan under this section, including a
monthly payment amount of $0.00, as
provided under paragraph (2)(C);
``(II) a monthly payment made under
the standard repayment plan under
section 455(d)(2)(A); or
``(III) a month during which the
borrower was not required to make a
payment due to receiving an economic
hardship deferment on the borrower's
covered Federal Direct Loans.
``(ii) Defaulted loans excluded.--Any
payments made on a defaulted loan are not
qualifying monthly payments and are not counted
toward the 20-year forgiveness period.
``(C) Determination of beginning date.--For a
borrower who qualifies for the program under this
section, the beginning date for the 20-year repayment
period is--
``(i) for a borrower who has a Federal
Direct Consolidation Loan, the date the
borrower made a qualifying monthly payment on
the consolidation loan, before the date the
borrower qualified for the program plan under
this section;
``(ii) for a borrower who has one or more
other covered Federal Direct Loans, the date
the borrower made a qualifying monthly payment
on that loan, before the date the borrower
qualified for the plan under this section;
``(iii) for a borrower who did not make a
qualifying monthly payment under clause (i) or
(ii), the date the borrower made a payment on
the borrower's covered Federal Direct Loans
under the plan under this section;
``(iv) if the borrower consolidates the
borrower's loans under this title, the date the
borrower made a qualifying monthly payment on
the Federal Direct Consolidation Loan; or
``(v) if the borrower did not make a
qualifying monthly payment on the loan under
clauses (i) through (iv), the date the borrower
made a payment on the loan under the plan under
this section.
``(D) Notification.--
``(i) Prior to loan cancellation.--Not
later than 6 months prior to the anticipated
date that the borrower will meet the
forgiveness requirements, the Secretary sends
the borrower a written notice that includes--
``(I) an explanation that the
borrower is approaching the date that
the borrower is expected to meet the
requirements to receive loan
forgiveness;
``(II) a reminder that the borrower
must continue to make the borrower's
scheduled monthly payments; and
``(III) general information on the
current treatment of the forgiveness
amount for tax purposes, and
instructions for the borrower to
contact the Internal Revenue Service
for more information.
``(ii) After loan cancellation.--After
determining that a borrower has satisfied the
loan forgiveness requirements, the Secretary--
``(I) notifies the borrower that
the borrower's obligation on the loans
is satisfied;
``(II) provides the borrower with
the information described in clause
(i)(III); and
``(III) returns to the sender any
payment received on a loan after loan
forgiveness has been granted.''.
SEC. 4. DISCLOSURES.
Section 455(p) of the Higher Education Act of 1965 (20 U.S.C.
1087e(p)) is amended--
(1) by striking ``Each institution'' and inserting the
following:
``(1) In general.--Each institution''; and
``(2) Consultation.--The Secretary shall regularly consult
with current and prospective college students, family members
of such students, institutions of higher education, and other
experts to improve the usefulness and relevance of the
disclosures described in paragraph (1).''.
SEC. 5. EXCLUSION OF CERTAIN STUDENT LOAN DISCHARGE BY REASON OF DEATH
OR DISABILITY.
(a) In General.--Section 108(f)(1) of the Internal Revenue Code of
1986 is amended--
(1) by striking the period at the end and inserting ``,
or'',
(2) by striking ``if such discharge was pursuant to a
provision'' and inserting the following: ``if such discharge
was pursuant to--
``(A) a provision'', and
(3) by adding at the end the following:
``(B) section 437(a) of the Higher Education Act of
1965.''.
(b) Effective Date.--The amendments made by this section shall
apply to discharges of indebtedness after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Higher Education and Workforce Training.
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