; or (B) has been in existence for not more than 3 years. . 5. Treatment of loan cancellation (a) In general Section 108(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (5) Cancellation of certain Federal student loans In the case of an individual, gross income shall not include the discharge (in whole or in part) of any student loan pursuant to the cancellation (in whole or in part) of such loan by the Secretary of Education under subsection (r) of section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ). . (b) Effective date The amendment made by this section shall apply to discharges of indebtedness occurring after the date of the enactment of this Act.