,i  #aagth ,,congress  #ast ,session    
,h4 ,r4 #dgig  ,,in ,,the ,,house ,,of  
,,representatives  ,july #bi1 #bjba ,mr4
 ,carter of ,louisiana introduced the   
following bill2 which was referred to   
the ,committee on ,education and ,labor1
 and in addition to the ,committees on  
,ways and ,means1 and the ,judiciary1   
for a period to be subsequently         
determined by the ,speaker1 in each case
 for consideration of such provisions as
 fall within the jurisdiction of the    
committee concerned  ,a ,,bill  ,to     
direct the ,secretary of ,education to  
discharge up to #ej1jjj of ,federal     
student loan debt for each borrower1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the ,student 
,loan ,relief ,act4  #b4 ,loan discharge
  7a7 ,in general ,subject to subsection
 7f71 not later than the date that is   
#ab months after the date of enactment  
of this ,act1 the ,secretary of         
,education shall discharge the qualified
 loan amount of each individual1 without

 regard to the repayment status of the  
loan or whether the loan is in default4 
7b7 ,qualified loan amount ,the         
qualified loan amount of an individual  
is an amount equal to the lesser of--   
7#a7 #ej1jjj2 and  7#b7 the aggregate   
loan obligation on the eligible ,federal
 loans of the taxpayer that is          
outstanding on the date of enactment of 
this ,act4  7c7 ,method of loan         
discharge  7#a7 ,in general ,to provide 
the loan discharge required under       
subsection 7a71 the ,secretary is       
authorized to carry out a program--     
7,a7 through the holder of the loan1 to 
assume the obligation to repay the      
qualified loan amount for a loan made1  
insured1 or guaranteed under part ,b of 
title ,,iv of the ,higher ,education    
,act of #aife 7#bj ,u4,s4,c4 #ajga et   
seq472  7,b7 to cancel the qualified    
loan amount for a loan made under part  
,d of title ,,iv of the ,higher         
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg;a et seq471 or assigned1 referred1

 or transferred to1 or purchased by1 the
 ,secretary under such title ,,iv 7#bj  
,u4,s4,c4 #ajgj et seq472 and  7,c7     
through the institution of higher       
education that made the loan from its   
student loan fund established under part
 ,e of such title 7#bj ,u4,s4,c4        
#ajhg;aa et seq471 to assume the        
obligation to repay the qualified loan  
amount for such loan4  7#b7 ,order of   
loan discharge ,with respect to an      
individual with at least #b eligible    
,federal loans1 the ,secretary shall    
discharge the loans of the individual as
 follows 7except as otherwise indicated 
by the individual73  7,a7 ,in the case  
in which the individual has loans with  
different rates of interest1 the loans  
should be discharged in descending order
 by rate of interest4  7,b7 ,in the case
 in which the individual has loans with 
the same rates of interest1 the loans   
should be discharged in descending order
 by amount of outstanding principal4    
7d7 ,exclusion from taxable income ,for 

purposes of the ,internal ,revenue ,code
 of #aihf1 in the case of an individual1
 gross income does not include any      
amount which 7but for this subsection7  
would be includible in gross income by  
reason of the discharge 7in whole or in 
part7 of any loan if such discharge was 
pursuant to this ,act4  7e7 ,taxpayer   
information  7#a7 ,in general ,the      
,secretary of the ,treasury may1 upon   
written request from the ,secretary of  
,education1 disclose to officers and    
employees of the ,department of         
,education return information with      
respect to a taxpayer who has received  
eligible ,federal loans that are        
outstanding on the date of enactment of 
this ,act4 ,such return information     
shall be limited to--  7,a7 taxpayer    
identity information with respect to    
such taxpayer2  7,b7 the filing status  
of such taxpayer2 and  7,c7 the adjusted
 gross income of such taxpayer4  7#b7   
,restriction on use of disclosed        
information ,return information         

disclosed under paragraph 7#a7 may be   
used by officers and employees of the   
,department of ,education only for the  
purposes of1 and to the extent necessary
 in1 establishing the appropriate       
qualified loan amount of a taxpayer4    
7f7 ,long-,term settle and compromise   
discharge authority ,not later than the 
date that is #bd months after the date  
of enactment of this ,act1 the          
,secretary of ,education may use the    
authority under sections #dcb7;a77#f7   
and #dfh7b7 of the ,higher ,education   
,act of #aife 7#bj ,u4,s4,c4            
#ajhb7;a77#f72 #ajhg;hh7#b77 to         
discharge loans under this section      
beyond the period described in          
subsection 7a7 for-- 7#a7 an individual 
who1 through an appeals process         
established by the ,secretary1          
successfully appeals a loan discharge   
determination by the ,secretary under   
this section2  7#b7 an individual who1  
due to special circumstances1 misses a  
deadline established by the ,secretary  

in the administration of loan discharges
 under this section2 or  7#c7 an        
individual 7or a group of individuals7  
who the ,secretary determines should    
have received a loan discharge or a     
discharge amount that is different from 
the amount of loan discharge received   
under this section1 except that a loan  
discharge amount received under this    
subsection may not exceed the qualified 
loan amount determined for the          
individual 7or the group of individuals7
 under subsection 7b74  7g7 ,credit     
reporting ,in the case of a borrower of 
an eligible ,federal loan that was in   
default prior to being discharged under 
this section and on which1 as a result  
of such loan discharge1 there is no     
outstanding balance of principal or     
interest1 the ,secretary1 guaranty      
agency or other holder of the loan shall
 request any consumer reporting agency  
to which the ,secretary1 guaranty agency
 or holder1 as applicable1 reported the 
default of the loan1 to remove the      

record of the default from the          
borrower's credit history4  7h7 ,members
 of ,congress ,in this section1 the     
terms individual and taxpayer do not    
include a ,member of ,congress4  #c4    
,automatic administrative forbearance2  
halting of wage garnishment ,during the 
period beginning on the date of         
enactment of this ,act and ending on the
 date that is #ab months after such date
 of enactment1 the ,secretary of        
,education-- 7#a7 shall place each      
borrower of an eligible ,federal loan   
with an outstanding balance1 without any
 further action required by the borrower
 7except that the borrower may opt-out  
of this section71 on an administrative  
forbearance during which periodic       
installments of principal need not be   
paid1 and interest shall not accrue1 on 
such loan2 and  7#b7 may not issue an   
order for wage garnishment or           
withholding under section #dhh;,a of the
 ,higher ,education ,act of #aife 7#bj  
,u4,s4,c4 #ajie;a7 or section #cgbj;,d  

of title #ca1 ,united ,states ,code1    
initiate proceedings to collect debt    
through deductions from pay under such  
section #dhh;,a or #cgbj;,d1 or enforce 
or otherwise require compliance with a  
wage garnishment or withholding order   
issued under such section #dhh;,a or    
#cgbj;,d before the date of enactment of
 this ,act 7which shall include staying 
any related proceedings74  #d4 ,staying 
and prohibition on commencement of      
actions for collection ,until #ab months
 after the date of enactment of this    
,act1 no eligible ,federal loan may be  
referred to the ,attorney ,general for  
any action seeking collection of any    
amount owed on that loan and any action 
pending as of the date of enactment of  
this ,act shall be stayed4  #e4         
,ineligibility for ,treasury ,offset    
,until #ab months after the date of     
enactment of this ,act1 no claim        
pertaining to an eligible ,federal loan 
may be certified under section          
#cgaf7;c77#a7 of title #ca1 ,united     

,states ,code4