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Stop Taxing Death and Disability
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Stop Taxing Death & Disability

EFC has strongly supported efforts to exempt from federal income tax private and federal education loans that are discharged due to the death or total and permanent disability of a student, and to allow the parent of a student that becomes totally and permanently disabled to have their federal loan discharged. 

EFC is pleased that the recently enacted tax reform bill included provisions of the Stop Taxing Death & Disability Act that will exempt from federal income tax private and federal education loans that are discharged due to the death or total and permanent disability of a student.

The tax bill, however, did not include, due to reconciliation rules, language that would allow the parent of a student that becomes totally and permanently disabled to have their federal loan discharged. 

To address this, Sens. Rob Portman, Chris Coons, and Angus King introduced Domenic's Law, which would include the provisions originally in the Stop Taxing Death & Disability Act to allow a parent whose child develops a total and permanent disability to qualify for student loan discharge. EFC has endorsed Domenic's Law

Allowing a parent whose child develops a total and permanent disability to qualify for student loan discharge is a common-sense and compassionate reform, and resolves an inconsistency in statute by authorizing the Department of Education to discharge federal loans owed by a parent of a child who becomes totally and permanently disabled.