Amendment #158 to H5007

Excluding Certain Student Loan Debt Forgiveness from Personal Income

Representatives Owens of Watertown and Higgins of Leominster move to amend the bill by adding the following section:

SECTION  XXXX

Subsection (a)(2) of section 2 of chapter 62 of the General Laws is hereby amended by adding the following subparagraphs:

(R) To the extent not otherwise excluded from gross income, in whole or in part, income attributable to the discharge of student debt that includes:

(i) Debt reduced or discharged through the federal Public Service Loan Forgiveness Program or similar program;

(ii) Debt reduced or discharged that is the result of an income-driven repayment plan, such as Income Based Repayment (IBR), Income Contingent Repayment (ICR), Pay as You Earn (PAYE), or Revised Pay as You Earn (REPAYE), or similar programs;

(iii) Debt reduced or discharged by any program that reduces the debt due to disability;

(iv) Debt reduced or discharged because of the death of the student or former student or a guarantor of a student loan;

(v) Debt reduced or discharged by any federal or state program that forgives or discharges student loan debt, or student loans or fees, for school closure or for any other reason attributable to the actions or conditions of the school;

(vi) Debt reduced or discharged by any federal or state program that forgives or discharges student loan debt or student loans or fees.

(S) Amounts received by an employee paid by the employer as contributions to a prepaid tuition program or college savings program established by the commonwealth or any instrumentality or authority thereof held by the employee if the contributions are made pursuant to section 82 of chapter 63 of the General Laws.”

Additional co-sponsor(s) added to Amendment #158 to H5007

Excluding Certain Student Loan Debt Forgiveness from Personal Income