1. Short title This Act may be cited as the Students and Families Empowerment Act . 2. Increase in deduction for student loan interest (a) Dollar limitation and limitation based on income replaced with limitation on aggregate education indebtedness that may be taken into account Section 221(b) of the Internal Revenue Code of 1986 is amended to read as follows: (b) Limitation on aggregate education indebtedness that may be taken into account The aggregate amount taken into account under subsection (a) as qualified education loans for any period shall not exceed $750,000 (twice such amount in the case of a joint return). . (b) Conforming amendments Section 221 of such Code is amended by striking subsections (e) and (f) (relating to special rules and inflation adjustments, respectively) and inserting the following new subsection: (e) Denial of double benefit No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Exclusion from gross income for discharge of income contingent and income-based student loan indebtedness (a) In general Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986 is amended to read as follows: (1) In general In the case of an individual, 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 any student loan if such discharge was pursuant to— (A) 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 professions for any of a broad class of employers, or (B) subsections (d)(1)(D) and (e)(7) of section 455 or section 493C(b)(7) of the Higher Education Act of 1965 (relating to income contingent and income-based repayment, respectively).