Student Borrower Fairness Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Borrower Fairness Act''.

SEC. 2. AVAILABILITY OF STUDENT LOANS AT FEDERAL RESERVE BANK DISCOUNT 
              RATE.

    (a) Availability of Student Loans.--Section 455(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(b)) is amended--
            (1) by redesignating paragraphs (9) and (10) as paragraphs 
        (10) and (11); and
            (2) by inserting after paragraph (8) the following new 
        paragraph:
            ``(9) Special rule for new loans on or after july 1, 
        2015.--
                    ``(A) Application of lower rate of interest.--
                Notwithstanding the preceding paragraphs of this 
                subsection, if the rate of interest determined under 
                subparagraph (B) with respect to any loan for which the 
                first disbursement is made on or after July 1, 2015, is 
                less than the applicable rate of interest for the loan 
                under paragraph (8), the applicable rate of interest 
                for the loan shall be the rate determined under 
                subparagraph (B).
                    ``(B) Determination of rate.--The rate of interest 
                determined under this subparagraph is, with respect to 
                a loan disbursed during any 12-month period beginning 
                on July 1 and ending on June 30, the primary credit 
                rate charged by the Federal Reserve banks on the 
                preceding June 1 for purposes of sections 13 and 13A of 
                the Federal Reserve Act (12 U.S.C. 342 et seq.).
                    ``(C) Consultation.--The Secretary shall determine 
                the rate of interest under subparagraph (B) after 
                consultation with the Secretary of the Treasury and 
                shall publish such rate in the Federal Register as soon 
                as practicable after the date of determination.
                    ``(D) Fixed rate.--The applicable rate of interest 
                determined under this paragraph for a loan shall be 
                fixed for the period of the loan.''.
    (b) Borrower Modification of Interest Rates.--Section 455(b) of 
such Act (20 U.S.C. 1087e(b)), as amended by subsection (a), is further 
amended by adding at the end the following new paragraph:
            ``(12) Borrower modification of interest rate.--
                    ``(A) Modification.--Notwithstanding the preceding 
                paragraphs of this subsection, the borrower of a 
                Federal Direct Stafford Loan, a Federal Direct 
                Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, 
                or a Federal Direct Consolidation Loan may elect to 
                modify the interest rate of the loan to be equal to the 
                interest rate that would be applicable to such loan if 
                such loan were first disbursed (or in the case of a 
                Federal Direct Consolidation Loan, first applied for) 
                on the date on which such borrower elects to modify the 
                interest rate of such loan.
                    ``(B) Fixed rate.--Except as provided in 
                subparagraph (C), an interest rate elected under 
                subparagraph (A) for a loan shall be fixed for the life 
                of the loan.
                    ``(C) Continuing authority to modify.--A borrower 
                may elect to modify the interest rate of a loan in 
                accordance with subparagraph (A) at any time during the 
                life of the loan.
                    ``(D) Construction.--Nothing in this paragraph 
                shall be construed to authorize any refunding of any 
                repayment of a loan.''.

SEC. 3. INCOME TAX RATE OF PUBLICLY TRADED CORPORATIONS BASED ON 
              COMPENSATION RATIO.

    (a) In General.--Section 11 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following:
    ``(e) Tax Rate of Publicly Traded Corporations Based on 
Compensation Ratio.--
            ``(1) In general.--In the case of a publicly traded 
        corporation (as defined in section 162(m)(2)), the amount of 
        tax under subsection (b) shall be determined--
                    ``(A) by adjusting the highest rate of tax 
                applicable to the taxpayer by the percentage point 
                adjustment specified in paragraph (2), and
                    ``(B) by making proper adjustments to--
                            ``(i) the dollar amount in clause (ii) of 
                        the second sentence of paragraph (1), and
                            ``(ii) the dollar amount in clause (ii) of 
                        the third sentence of paragraph (1).
            ``(2) Adjustment of tax rate.--For purposes of paragraph 
        (1), the percentage points specified in this paragraph shall be 
        determined as follows:


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       ``If the compensation ratio is:                        The percentage point adjustment is:
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Not more than 25.............................   -1 percentage points
More than 25 but not more than 50............  -0.5 percentage points
More than 50 but not more than 100...........  zero
More than 100 but not more than 150..........  +0.5 percentage points
More than 150 but not more than 200..........  +1 percentage points
More than 200 but not more than 250..........  +1.5 percentage points
More than 250 but not more than 300..........  +2 percentage points
More than 300 but not more than 400..........  +2.5 percentage points
More than 400................................  +3 percentage points.
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            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Compensation ratio.--The compensation ratio 
                for a taxable year means a ratio--
                            ``(i) the numerator of which is the amount 
                        equal to the greater of the compensation of the 
                        chief operating officer or the highest paid 
                        employee of the taxpayer for the calendar year 
                        preceding the beginning of the taxable year, 
                        and
                            ``(ii) the denominator of which is the 
                        amount equal to the median compensation of all 
                        employees employed by the taxpayer in the 
                        United States for the calendar year preceding 
                        the beginning of the taxable year.
                    ``(B) Compensation.--
                            ``(i) Employees.--In the case of employees 
                        of the taxpayer other than the chief operating 
                        officer or the highest paid employee, the term 
                        `compensation' means wages (as defined in 
                        section 3121(a)) paid by the taxpayer during a 
                        calendar year.
                            ``(ii) CEO and highest paid employee.--In 
                        the case of the chief operating officer and the 
                        highest paid employee of the taxpayer, the term 
                        `compensation' means total compensation for the 
                        calendar year, as reported in the Summary 
                        Compensation Table reported to the Securities 
                        and Exchange Commission pursuant to Item 402 of 
                        Regulation S-K of the Securities and Exchange 
                        Commission.
            ``(4) Special rule if contracted or foreign employee ratio 
        increases.--
                    ``(A) In general.--If--
                            ``(i) the total number of full-time 
                        employees, determined on an annual full-time 
                        equivalent basis, employed by the taxpayer in 
                        the United States for a taxable year is reduced 
                        by more than 10 percent, as compared to the 
                        total number of full-time employees, determined 
                        on an annual full-time equivalent basis, 
                        employed by the taxpayer in the United States 
                        for the preceding taxable year, and
                            ``(ii) the total number of contracted 
                        employees or foreign full-time employees, 
                        determined on an annual full-time equivalent 
                        basis, of the taxpayer for that taxable year 
                        has increased, as compared with the total 
                        number of contracted employees or foreign full-
                        time employees, determined on an annual full-
                        time equivalent basis, of the taxpayer for the 
                        preceding taxable year,
                then the applicable tax rate determined under paragraph 
                (2) shall be increased by 50 percent. For taxpayers who 
                first commence doing business during the taxable year, 
                the number of full-time employees, contracted 
                employees, and foreign full-time employees for the 
                immediately preceding prior taxable year shall be zero.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Annual full-time equivalent.--The 
                        term `annual full-time equivalent' means--
                                    ``(I) in the case of a full-time 
                                employee paid hourly qualified wages, 
                                the total number of hours worked for 
                                the taxpayer by the employee, not to 
                                exceed 2,000 hours per employee, 
                                divided by 2,000, and
                                    ``(II) in the case of a salaried 
                                full-time employee, the total number of 
                                weeks worked for the taxpayer by the 
                                employee divided by 52.
                            ``(ii) Contracted full-time employee.--The 
                        term `contracted full-time employee' means an 
                        individual engaged by the taxpayer to provide a 
                        specific set of services established pursuant 
                        to the terms and conditions of a written 
                        employment contract that delineates the length 
                        of employment, the salary and bonuses (if any) 
                        to be paid, and the benefits that accrue to 
                        that individual.
                            ``(iii) Foreign full-time employee.--The 
                        term `foreign full-time employee' means a full-
                        time employee of the taxpayer that is employed 
                        at a location other than the United States.
                            ``(iv) Full-time employee.--The term `full-
                        time employee' means an employee of the 
                        taxpayer that either--
                                    ``(I) is paid compensation by the 
                                taxpayer for services of not less than 
                                an average of 35 hours per week, or
                                    ``(II) is a salaried employee of 
                                the taxpayer and is paid compensation 
                                during the taxable year for full-time 
                                employment.
            ``(5) Controlled groups.--For purposes of this subsection, 
        all persons treated as a single employer under subsection (b), 
        (c), (m) or (o) of section 414, shall be treated as one person.
            ``(6) Reports.--The taxpayer shall furnish such reports to 
        the Secretary with respect to compensation and such other 
        matters as the Secretary may require. The reports required by 
        this subsection shall be filed at such time and in such manner 
        as may be required by the Secretary.
            ``(7) Regulations.--The Secretary shall prescribe such 
        regulations and other guidance as may be necessary or 
        appropriate to carry out this subsection, including any 
        guidelines regarding the determination of wages, average 
        compensation, and compensation ratio.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

Summary: Student Borrower Fairness Act This bill amends the Higher Education Act of 1965 to permit student loan borrowers to refinance their loans at interest rates offered on loans to banks by the Federal Reserve System. The cost of this bill is offset by an amendment to the Internal Revenue Code that increases the corporate income rate on companies that pay their chief executive officers or highest paid employees more than 100 times the median compensation of all their employees.