NJ
New Jersey Assembly Bill AR105

New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill AR105

Introduced
3/7/22  

Caption

Urges Congress to amend tax code to exclude all forms of discharged student loans from federal income tax.

Impact

If adopted, this resolution could lead to significant changes in how discharged student loans are treated under federal tax law. By advocating for the exclusion of discharged loans from taxable income, the resolution seeks to provide financial relief to borrowers who currently are taxed on their forgiven loans, particularly those who may benefit from long-term repayment plans or meet specific hardship criteria. It addresses the necessity for a uniform policy regarding student debt discharges, ensuring that all borrowers can benefit from relief irrespective of the type of discharge.

Summary

Assembly Resolution No. 105, introduced in the New Jersey legislature, aims to urge Congress to amend the federal tax code in a way that would exclude all forms of discharged student loans from being subject to federal income tax. The resolution emphasizes that while certain types of discharged student loans, such as those forgiven under specific programs for public service employees, are not taxed, many other forms still incur tax liabilities upon discharge. This inconsistency is seen as a burden for borrowers who find themselves in need of relief from educational debt.

Contention

Notably, the bill touches on existing exceptions in the tax code and seeks to expand them beyond the current framework. While some legislators and stakeholders may support the resolution as a means of enhancing financial relief for borrowers, others could argue about the potential impacts on federal tax revenues. It raises questions about fairness and equality for borrowers who do not qualify for current exemptions, and whether the federal government can afford to make such exemptions more widespread. Overall, the discussions surrounding this bill are likely to reflect a broader national conversation about student debt and tax policy.

Companion Bills

No companion bills found.

Previously Filed As

NJ SR41

Urges Congress to amend tax code to exclude all forms of discharged student loans from federal income tax.

NJ AR95

Urges Congress to amend tax code to permanently exclude all forms of discharged student loans from federal income tax.

NJ HB1720

Income tax; exclude from gross income certain forgiven, cancelled or discharged federal student loan debt.

NJ HB1508

Income tax; exclude forgiven, cancelled or discharged federal student loan debt from definition of "gross income".

NJ SB2451

Income tax; exclude forgiven, cancelled or discharged federal student loan debt from definition of "gross income."

NJ HB1653

Income tax; exclude forgiven, cancelled or discharged federal student loan debt under the PSLF Program from the definition of "gross income".

NJ HB1485

Income tax; exclude forgiven, cancelled or discharged federal student loan debt under the Public Service Loan Forgiveness Program from the definition of "gross income".

NJ HB1773

Income tax; exclude forgiven, cancelled or discharged federal student loan debt under the Public Service Loan Forgiveness Program from the definition of "gross income".

NJ AR144

Urges President and Congress of United States to continue federal Public Service Loan Forgiveness Program.

NJ AR69

Urges President and Congress of United States to continue federal Public Service Loan Forgiveness Program.

Similar Bills

NJ AR95

Urges Congress to amend tax code to permanently exclude all forms of discharged student loans from federal income tax.

NJ SR41

Urges Congress to amend tax code to exclude all forms of discharged student loans from federal income tax.

NJ AR144

Urges President and Congress of United States to continue federal Public Service Loan Forgiveness Program.

NJ SR86

Urges President and Congress of United States to continue federal Public Service Loan Forgiveness Program.

NJ AR69

Urges President and Congress of United States to continue federal Public Service Loan Forgiveness Program.

US HB509

Debt Cancellation Accountability Act of 2023

US SB72

Debt Cancellation Accountability Act of 2023 This bill prohibits the Department of Education from providing class-based loan forgiveness unless funds have been specifically requested and appropriated for this purpose. Class-based loan forgiveness refers to the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on Federal Family Education Loans, Federal Direct Loans, or Federal Perkins Loans (1) on a class-wide basis and for a class of two or more loan borrowers, and (2) that totals more than $1 million. The prohibition does not apply to targeted loan forgiveness programs explicitly established under the Higher Education Act of 1965 and in effect before January 1, 2022, if the loan forgiveness is granted for a single borrower on a case-by-case basis.

CA AB796

Public postsecondary education: admission of pupils who have earned associate of arts degrees while attending high school.