Bill > SR41

Introduced Session

This resolution urges Congress to exclude all forms of discharged student loans from the federal income tax. Federal law requires payment of the income tax on forgiven debt except in certain circumstances. For example, student loans forgiven for teachers and public service employees eligible for Teacher Loan Forgiveness and Public Service Loan Forgiveness programs are not subject to the income tax. Discharge of student debt on account of death or disability is also not subject to the income tax but only if the debt is discharged between December 31, 2017 and January 1, 2026. Other forms of discharged student debt, such as the forgiveness of loans in Income-Driven Repayment-Plans after the 20 or 25 year repayment period, are subject to federal income taxation. This House therefore urges Congress to make the discharge of student debt on account of death or disability exception to the income tax a permanent part of the tax code, and to permanently exclude from the income tax all other forms of discharged student loans.

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Britnee Timberlake (D)*, 

Introduced in the Senate, Referred to Senate Higher Education Committee (on 01/09/2024)

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