HR 4293 — Supporting America’s Young Entrepreneurs Act of 2021

(a) In general (1) Parallel terms, conditions, benefits, and amounts Unless otherwise specified in this part, loans made to borrowers under this part shall have the same terms, conditions, and benefits, and be available in the same amounts, as loans made to borrowers, and first disbursed on June 30, 2010, under sections 1078, 1078–2, 1078–3, and 1078–8 of this title. (2) Designation of loans Loans made to borrowers under this part that, except as otherwise specified in this part, have the same terms, conditions, and benefits as loans made to borrowers under— (A) section 1078 of this title shall be known as “Federal Direct Stafford Loans”; (B) section 1078–2 of this title shall be known as “Federal Direct PLUS Loans”; (C) section 1078–3 of this title shall be known as “Federal Direct Consolidation Loans”; and (D) section 1078–8 of this title shall be known as “Federal Direct Unsubsidized Stafford Loans”. (3) Termination of authority to make interest subsidized loans and Federal Direct PLUS loans to graduate and professional students (A) Termination of authority to make interest subsidized loans to graduate and professional students Subject to subparagraph (B), and notwithstanding any provision of this part or part B— (i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and (ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the maximum annual amount for such student determined under section 1078–8 of this title, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph. (B) Exception Subparagraph (A) shall not apply to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title. (C) Termination of authority to make Federal Direct PLUS loans to graduate and professional students Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part. (4) Graduate and professional annual and aggregate limits for Federal Direct Unsubsidized Stafford loans beginning July 1, 2026 (A) Annual limits beginning July 1, 2026 Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans— (i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and (ii) a professional student may borrow in any academic year or its equivalent shall be $50,000. (B) Aggregate limits Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that— (i) a graduate student— (I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or (II) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be an amount equal to— (aa) $200,000; minus (bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and (ii) a professional student— (I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or (II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to— (aa) $200,000...

(a) Exclusion from gross income (1) In general Gross income does not include any amount which (but for this subsection) would be includible in gross income by reason of the discharge (in whole or in part) of indebtedness of the taxpayer if— (A) the discharge occurs in a title 11 case, (B) the discharge occurs when the taxpayer is insolvent, (C) the indebtedness discharged is qualified farm indebtedness, (D) in the case of a taxpayer other than a C corporation, the indebtedness discharged is qualified real property business indebtedness, or (E) the indebtedness discharged is qualified principal residence indebtedness which is discharged— (i) before January 1, 2026, or (ii) subject to an arrangement that is entered into and evidenced in writing before January 1, 2026. (2) Coordination of exclusions (A) Title 11 exclusion takes precedence Subparagraphs (B), (C), (D), and (E) of paragraph (1) shall not apply to a discharge which occurs in a title 11 case. (B) Insolvency exclusion takes precedence over qualified farm exclusion and qualified real property business exclusion Subparagraphs (C) and (D) of paragraph (1) shall not apply to a discharge to the extent the taxpayer is insolvent. (C) Principal residence exclusion takes precedence over insolvency exclusion unless elected otherwise Paragraph (1)(B) shall not apply to a discharge to which paragraph (1)(E) applies unless the taxpayer elects to apply paragraph (1)(B) in lieu of paragraph (1)(E). (3) Insolvency exclusion limited to amount of insolvency In the case of a discharge to which paragraph (1)(B) applies, the amount excluded under paragraph (1)(B) shall not exceed the amount by which the taxpayer is insolvent. (b) Reduction of tax attributes (1) In general The amount excluded from gross income under subparagraph (A), (B), or (C) of subsection (a)(1) shall be applied to reduce the tax attributes of the taxpayer as provided in paragraph (2). (2) Tax attributes affected; order of reduction Except as provided in paragraph (5), the reduction referred to in paragraph (1) shall be made in the following tax attributes in the following order: (A) NOL Any net operating loss for the taxable year of the discharge, and any net operating loss carryover to such taxable year. (B) General business credit Any carryover to or from the taxable year of a discharge of an amount for purposes for determining the amount allowable as a credit under section 38 (relating to general business credit). (C) Minimum tax credit The amount of the minimum tax credit available under section 53(b) as of the beginning of the taxable year immediately following the taxable year of the discharge. (D) Capital loss carryovers Any net capital loss for the taxable year of the discharge, and any capital loss carryover to such taxable year under section 1212. (E) Basis reduction (i) In general The basis of the property of the taxpayer. (ii) Cross reference For provisions for making the reduction described in clause (i), see section 1017. (F) Passive activity loss and credit carryovers Any passive activity loss or credit carryover of the taxpayer under section 469(b) from the taxable year of the discharge. (G) Foreign tax credit carryovers Any carryover to or from the taxable year of the discharge for purposes of determining the amount of the credit allowable under section 27. (3) Amount of reduction (A) In general Except as provided in subparagraph (B), the reductions described in paragraph (2) shall be one dollar for each dollar excluded by subsection (a). (B) Credit carryover reduction The reductions described in subparagraphs (B), (C), and (G) shall be 33⅓ cents for each dollar excluded by subsection (a). The reduction described in subparagraph (F) in any passive activity credit carryover shall be 33⅓ cents for each dollar excluded by subsection (a). (4) Ordering rules (A) Reductions made after determination of tax for year The reductions described in paragraph (2) shall be made after the determination of the tax i...