; and (B) the aggregate loan obligation on the eligible Federal loans of the taxpayer that is outstanding on the date of enactment of this Act or, in the case of such loans issued under section 460B of the Higher Education Act of 1965, as added by part 2 of this subtitle, on the date on which such loans are issued under such section 460B. (2) Limitation based on adjusted gross income The amount discharged under subsection (a) with respect to an individual shall be reduced (but not below zero) by $1 for each $3 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds $100,000 (twice such amount in the case of a joint return) for the most recent taxable year ending before the date of the enactment of this Act. (c) Method of loan discharge (1) In general To provide the loan discharge required under subsection (a) , the Secretary is authorized to carry out a program— (A) through the holder of the loan, to assume the obligation to repay the qualified loan amount for a loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq.); (B) to cancel the qualified loan amount for a loan made under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.), or assigned, referred, or transferred to, or purchased by, the Secretary under such title IV ( 20 U.S.C. 1070 et seq.), including a Federal Direct Stafford Loan issued under section 460B of the Higher Education Act of 1965, as added by part 2 of this subtitle