CANCELLATION OF CERTAIN STUDENT LOANS,

SEC. 2117. CANCELLATION OF CERTAIN STUDENT LOANS, (a) In General.— In the case of an individual, no amount shall be included in gross income for purposes of section 61 of the Internal Revenue Code of 1954 by reason of the discharge of all or part of the indebtedness of the individual under a student loan if such discharge was pursuant to a provision of such loan under which all or part of the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain geographical areas or for certain classes of employers. (b) Student Loan.— For purposes of this section the term “student loan” means any loan to an individual to assist the individual in attending an educational organization described in section 170(b)(1)(A)(ii) of such Code— (1) by the United States, or an instrumentality or agency thereof, or a State, territory, or possession of the United States, or any political subdivision thereof, or the District of Columbia, or (2) by any such educational organization pursuant to an agreement with the United States, or an instrumentality or agency thereof, or a State, territory, or possession of the United States, or any political subdivision thereof, or the District of Columbia under which the funds from which the loan was made were provided to such educational organization. 90 STAT. 1912 (c) Effective Date.— The provisions of this section shall apply to discharges of indebtedness made before January 1, 1979.