II 

116TH CONGRESS 

1ST SESSION S. 768 

To amend the Higher Education Act of 1965 to provide for the refinancing 

of certain Federal student loans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2019 

Ms. WARREN (for herself, Ms. BALDWIN, Mr. BENNET, Mr. BLUMENTHAL, 

Mr. BOOKER, Mr. BROWN, Ms. CANTWELL, Mr. CARDIN, Mr. CASEY, Ms. 

CORTEZ MASTO, Ms. DUCKWORTH, Mr. DURBIN, Mrs. FEINSTEIN, Mrs. 

GILLIBRAND, Ms. HARRIS, Ms. HASSAN, Ms. HIRONO, Ms. KLOBUCHAR, 

Mr. LEAHY, Mr. MANCHIN, Mr. MARKEY, Mr. MENENDEZ, Mr. 

MERKLEY, Mr. MURPHY, Mr. PETERS, Mr. REED, Mr. SANDERS, Mrs. 

SHAHEEN, Ms. SMITH, Ms. STABENOW, Mr. UDALL, Mr. VAN HOLLEN, 

Mr. WHITEHOUSE, Mr. WYDEN, and Mr. HEINRICH) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Higher Education Act of 1965 to provide 

for the refinancing of certain Federal student loans, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bank on Students 

5 Emergency Loan Refinancing Act’’. 


pbinns on DSK79D2C42PROD with BILLS
2 

•S 768 IS

1 TITLE I—REFINANCING 

2 PROGRAMS 

3 SEC. 101. REFINANCING PROGRAMS. 

4 (a) PROGRAM AUTHORITY.—Section 451(a) of the 

5 Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 

6 amended— 

7 (1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 

8 and 

9 (2) by inserting ‘‘; and (3) to make loans under 

10 section 460A and section 460B’’ after ‘‘section 

11 459A’’. 

12 (b) REFINANCING PROGRAM.—Part D of title IV of 

13 the Higher Education Act of 1965 (20 U.S.C. 1087a et 

14 seq.) is amended by adding at the end the following: 

15 ‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 

16 LOANS. 

17 ‘‘(a) IN GENERAL.—Beginning not later than 180 

18 days after the date of enactment of the Bank on Students 

19 Emergency Loan Refinancing Act, the Secretary shall es20 tablish a program under which the Secretary, upon the 

21 receipt of an application from a qualified borrower, makes 

22 a loan under this part, in accordance with the provisions 

23 of this section, in order to permit the borrower to obtain 

24 the interest rate provided under subsection (c). 

25 ‘‘(b) REFINANCING DIRECT LOANS.— 


pbinns on DSK79D2C42PROD with BILLS
3 

•S 768 IS

1 ‘‘(1) FEDERAL DIRECT LOANS.—Upon applica2 tion of a qualified borrower, the Secretary shall 

3 repay a Federal Direct Stafford Loan, a Federal Di4 rect Unsubsidized Stafford Loan, a Federal Direct 

5 PLUS Loan, or a Federal Direct Consolidation 

6 Loan of the qualified borrower, for which the first 

7 disbursement was made, or the application for the 

8 consolidation loan was received, before July 1, 2019, 

9 with the proceeds of a refinanced Federal Direct 

10 Stafford Loan, a Federal Direct Unsubsidized Staf11 ford Loan, a Federal Direct PLUS Loan, or a Fed12 eral Direct Consolidation Loan, respectively, issued 

13 to the borrower in an amount equal to the sum of 

14 the unpaid principal, accrued unpaid interest, and 

15 late charges of the original loan. 

16 ‘‘(2) REFINANCING FFEL PROGRAM LOANS AS

17 REFINANCED FEDERAL DIRECT LOANS.—Upon ap18 plication of a qualified borrower for any loan that 

19 was made, insured, or guaranteed under part B and 

20 for which the first disbursement was made, or the 

21 application for the consolidation loan was received, 

22 before July 1, 2010, the Secretary shall make a loan 

23 under this part, in an amount equal to the sum of 

24 the unpaid principal, accrued unpaid interest, and 


pbinns on DSK79D2C42PROD with BILLS
4 

•S 768 IS

1 late charges of the original loan to the borrower in 

2 accordance with the following: 

3 ‘‘(A) The Secretary shall pay the proceeds 

4 of such loan to the eligible lender of the loan 

5 made, insured, or guaranteed under part B, in 

6 order to discharge the borrower from any re7 maining obligation to the lender with respect to 

8 the original loan. 

9 ‘‘(B) A loan made under this section that 

10 was originally a loan made, insured, or guaran11 teed— 

12 ‘‘(i) under section 428 shall be a Fed13 eral Direct Stafford Loan; 

14 ‘‘(ii) under section 428B shall be a 

15 Federal Direct PLUS Loan; 

16 ‘‘(iii) under section 428H shall be a 

17 Federal Direct Unsubsidized Stafford 

18 Loan; and 

19 ‘‘(iv) under section 428C shall be a 

20 Federal Direct Consolidation Loan. 

21 ‘‘(C) The interest rate for each loan made 

22 by the Secretary under this paragraph shall be 

23 the rate provided under subsection (c). 

24 ‘‘(c) INTEREST RATES.— 


pbinns on DSK79D2C42PROD with BILLS
5 

•S 768 IS

1 ‘‘(1) IN GENERAL.—The interest rate for the 

2 refinanced Federal Direct Stafford Loans, Federal 

3 Direct Unsubsidized Stafford Loans, Federal Direct 

4 PLUS Loans, and Federal Direct Consolidation 

5 Loans, shall be a rate equal to— 

6 ‘‘(A) in any case where the original loan 

7 was a loan under section 428 or 428H, a Fed8 eral Direct Stafford loan, or a Federal Direct 

9 Unsubsidized Stafford Loan, that was issued to 

10 an undergraduate student, a rate equal to the 

11 rate for Federal Direct Stafford Loans and 

12 Federal Direct Unsubsidized Stafford Loans 

13 issued to undergraduate students for the 12- 

14 month period beginning on July 1, 2016, and 

15 ending on June 30, 2017; 

16 ‘‘(B) in any case where the original loan 

17 was a loan under section 428 or 428H, a Fed18 eral Direct Stafford Loan, or a Federal Direct 

19 Unsubsidized Stafford Loan, that was issued to 

20 a graduate or professional student, a rate equal 

21 to the rate for Federal Direct Unsubsidized 

22 Stafford Loans issued to graduate or profes23 sional students for the 12-month period begin24 ning on July 1, 2016, and ending on June 30, 

25 2017; 


pbinns on DSK79D2C42PROD with BILLS
6 

•S 768 IS

1 ‘‘(C) in any case where the original loan 

2 was a loan under section 428B or a Federal Di3 rect PLUS Loan, a rate equal to the rate for 

4 Federal Direct PLUS Loans for the 12-month 

5 period beginning on July 1, 2016, and ending 

6 on June 30, 2017; and 

7 ‘‘(D) in any case where the original loan 

8 was a loan under section 428C or a Federal Di9 rect Consolidation Loan, a rate calculated in ac10 cordance with paragraph (2). 

11 ‘‘(2) INTEREST RATES FOR CONSOLIDATION

12 LOANS.— 

13 ‘‘(A) METHOD OF CALCULATION.—In 

14 order to determine the interest rate for any re15 financed Federal Direct Consolidation Loan 

16 under paragraph (1)(D), the Secretary shall— 

17 ‘‘(i) determine each of the component 

18 loans that were originally consolidated in 

19 the loan under section 428C or the Federal 

20 Direct Consolidation Loan, and calculate 

21 the proportion of the unpaid principal bal22 ance of the loan under section 428C or the 

23 Federal Direct Consolidation Loan that 

24 each component loan represents; 


pbinns on DSK79D2C42PROD with BILLS
7 

•S 768 IS

1 ‘‘(ii) use the proportions determined 

2 in accordance with clause (i) and the inter3 est rate applicable for each component 

4 loan, as determined under subparagraph 

5 (B), to calculate the weighted average of 

6 the interest rates on the loans consolidated 

7 into the loan under section 428C or the 

8 Federal Direct Consolidation Loan; and 

9 ‘‘(iii) apply the weighted average cal10 culated under clause (ii) as the interest 

11 rate for the refinanced Federal Direct Con12 solidation Loan. 

13 ‘‘(B) INTEREST RATES FOR COMPONENT

14 LOANS.—The interest rates for the component 

15 loans of a loan made under section 428C or a 

16 Federal Direct Consolidation Loan shall be the 

17 following: 

18 ‘‘(i) The interest rate for any loan 

19 under section 428 or 428H, Federal Direct 

20 Stafford Loan, or Federal Direct Unsub21 sidized Stafford Loan issued to an under22 graduate student shall be a rate equal to 

23 the lesser of— 

24 ‘‘(I) the rate for Federal Direct 

25 Stafford Loans and Federal Direct 


pbinns on DSK79D2C42PROD with BILLS
8 

•S 768 IS

1 Unsubsidized Stafford Loans issued 

2 to undergraduate students for the 12- 

3 month period beginning on July 1, 

4 2016, and ending on June 30, 2017; 

5 or 

6 ‘‘(II) the original interest rate of 

7 the component loan. 

8 ‘‘(ii) The interest rate for any loan 

9 under section 428 or 428H, Federal Direct 

10 Stafford Loan, or Federal Direct Unsub11 sidized Stafford Loan issued to a graduate 

12 or professional student shall be a rate 

13 equal to the lesser of— 

14 ‘‘(I) the rate for Federal Direct 

15 Unsubsidized Stafford Loans issued 

16 to graduate or professional students 

17 for the 12-month period beginning on 

18 July 1, 2016, and ending on June 30, 

19 2017; or 

20 ‘‘(II) the original interest rate of 

21 the component loan. 

22 ‘‘(iii) The interest rate for any loan 

23 under section 428B or Federal Direct 

24 PLUS Loan shall be a rate equal to the 

25 lesser of— 


pbinns on DSK79D2C42PROD with BILLS
9 

•S 768 IS

1 ‘‘(I) the rate for Federal Direct 

2 PLUS Loans for the 12-month period 

3 beginning on July 1, 2016, and end4 ing on June 30, 2017; or 

5 ‘‘(II) the original interest rate of 

6 the component loan. 

7 ‘‘(iv) The interest rate for any compo8 nent loan that is a loan under section 

9 428C or a Federal Direct Consolidation 

10 Loan shall be the weighted average of the 

11 interest rates that would apply under this 

12 subparagraph for each loan comprising the 

13 component consolidation loan. 

14 ‘‘(v) The interest rate for any eligible 

15 loan that is a component of a loan made 

16 under section 428C or a Federal Direct 

17 Consolidation Loan and is not described in 

18 clauses (i) through (iv) shall be the inter19 est rate on the original component loan. 

20 ‘‘(3) FIXED RATE.—The applicable rate of in21 terest determined under paragraph (1) for a refi22 nanced loan under this section shall be fixed for the 

23 period of the loan. 

24 ‘‘(d) TERMS AND CONDITIONS OF LOANS.— 


pbinns on DSK79D2C42PROD with BILLS
10 

•S 768 IS

1 ‘‘(1) IN GENERAL.—A loan that is refinanced 

2 under this section shall have the same terms and 

3 conditions as the original loan, except as otherwise 

4 provided in this section. 

5 ‘‘(2) NO AUTOMATIC EXTENSION OF REPAY6 MENT PERIOD.—Refinancing a loan under this sec7 tion shall not result in the extension of the duration 

8 of the repayment period of the loan, and the bor9 rower shall retain the same repayment term that 

10 was in effect on the original loan. Nothing in this 

11 paragraph shall be construed to prevent a borrower 

12 from electing a different repayment plan at any time 

13 in accordance with section 455(d)(3). 

14 ‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 

15 ‘‘(1) IN GENERAL.—For purposes of this sec16 tion, the term ‘qualified borrower’ means a bor17 rower— 

18 ‘‘(A) of a loan under this part or part B 

19 for which the first disbursement was made, or 

20 the application for a consolidation loan was re21 ceived, before July 1, 2019; and 

22 ‘‘(B) who meets the eligibility requirements 

23 based on income or debt-to-income ratio estab24 lished by the Secretary. 


pbinns on DSK79D2C42PROD with BILLS
11 

•S 768 IS

1 ‘‘(2) INCOME REQUIREMENTS.—Not later than 

2 180 days after the date of enactment of the Bank 

3 on Students Emergency Loan Refinancing Act, the 

4 Secretary shall establish eligibility requirements 

5 based on income or debt-to-income ratio that take 

6 into consideration providing access to refinancing 

7 under this section for borrowers with the greatest fi8 nancial need. 

9 ‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 

10 in coordination with the Director of the Bureau of Con11 sumer Financial Protection, shall undertake a campaign 

12 to alert borrowers of loans that are eligible for refinancing 

13 under this section that the borrowers are eligible to apply 

14 for such refinancing. The campaign shall include the fol15 lowing activities: 

16 ‘‘(1) Developing consumer information mate17 rials about the availability of Federal student loan 

18 refinancing. 

19 ‘‘(2) Requiring servicers of loans under this 

20 part or part B to provide such consumer information 

21 to borrowers in a manner determined appropriate by 

22 the Secretary, in consultation with the Director of 

23 the Bureau of Consumer Financial Protection. 


pbinns on DSK79D2C42PROD with BILLS
12 

•S 768 IS

1 ‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 

2 PROGRAM. 

3 ‘‘(a) DEFINITIONS.—In this section: 

4 ‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 

5 The term ‘eligible private education loan’ means a 

6 private education loan, as defined in section 140(a) 

7 of the Truth in Lending Act (15 U.S.C. 1650(a)), 

8 that— 

9 ‘‘(A) was disbursed to the borrower before 

10 July 1, 2019; and 

11 ‘‘(B) was for the borrower’s own postsec12 ondary educational expenses for an eligible pro13 gram at an institution of higher education par14 ticipating in the loan program under this part, 

15 as of the date that the loan was disbursed. 

16 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

17 LOAN.—The term ‘Federal Direct Refinanced Pri18 vate Loan’ means a loan issued under subsection 

19 (b)(1). 

20 ‘‘(3) PRIVATE EDUCATIONAL LENDER.—The 

21 term ‘private educational lender’ has the meaning 

22 given the term in section 140(a) of the Truth in 

23 Lending Act (15 U.S.C. 1650(a)). 

24 ‘‘(4) QUALIFIED BORROWER.—The term ‘quali25 fied borrower’ means an individual who— 

26 ‘‘(A) has an eligible private education loan; 


pbinns on DSK79D2C42PROD with BILLS
13 

•S 768 IS

1 ‘‘(B) has been current on payments on the 

2 eligible private education loan for the 6 months 

3 prior to the date of the qualified borrower’s ap4 plication for refinancing under this section, and 

5 is in good standing on the loan at the time of 

6 such application; 

7 ‘‘(C) is not in default on the eligible pri8 vate education loan or on any loan made, in9 sured, or guaranteed under this part or part B 

10 or E; and 

11 ‘‘(D) meets the eligibility requirements de12 scribed in subsection (b)(2). 

13 ‘‘(b) PROGRAM AUTHORIZED.— 

14 ‘‘(1) IN GENERAL.—The Secretary, in consulta15 tion with the Secretary of the Treasury, shall carry 

16 out a program under which the Secretary, upon ap17 plication by a qualified borrower who has an eligible 

18 private education loan, shall issue such borrower a 

19 loan under this part in accordance with the fol20 lowing: 

21 ‘‘(A) The loan issued under this program 

22 shall be in an amount equal to the sum of the 

23 unpaid principal, accrued unpaid interest, and 

24 late charges of the private education loan. 


pbinns on DSK79D2C42PROD with BILLS
14 

•S 768 IS

1 ‘‘(B) The Secretary shall pay the proceeds 

2 of the loan issued under this program to the 

3 private educational lender of the private edu4 cation loan, in order to discharge the qualified 

5 borrower from any remaining obligation to the 

6 lender with respect to the original loan. 

7 ‘‘(C) The Secretary shall require that the 

8 qualified borrower undergo loan counseling that 

9 provides all of the information and counseling 

10 required under clauses (i) through (viii) of sec11 tion 485(b)(1)(A) before the loan is refinanced 

12 in accordance with this section, and before the 

13 proceeds of such loan are paid to the private 

14 educational lender. 

15 ‘‘(D) The Secretary shall issue the loan as 

16 a Federal Direct Refinanced Private Loan, 

17 which shall have the same terms, conditions, 

18 and benefits as a Federal Direct Unsubsidized 

19 Stafford Loan, except as otherwise provided in 

20 this section. 

21 ‘‘(2) BORROWER ELIGIBILITY.—Not later than 

22 180 days after the date of enactment of the Bank 

23 on Students Emergency Loan Refinancing Act, the 

24 Secretary, in consultation with the Secretary of the 

25 Treasury and the Director of the Bureau of ConVerDate Sep 11 2014 00:11 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S768.IS S768

pbinns on DSK79D2C42PROD with BILLS
15 

•S 768 IS

1 sumer Financial Protection, shall establish eligibility 

2 requirements— 

3 ‘‘(A) based on income or debt-to-income 

4 ratio that take into consideration providing ac5 cess to refinancing under this section for bor6 rowers with the greatest financial need; 

7 ‘‘(B) to ensure eligibility only for bor8 rowers in good standing; 

9 ‘‘(C) to minimize inequities between Fed10 eral Direct Refinanced Private Loans and other 

11 Federal student loans; 

12 ‘‘(D) to preclude windfall profits for pri13 vate educational lenders; and 

14 ‘‘(E) to ensure full access to the program 

15 authorized in this subsection for borrowers with 

16 private loans who otherwise meet the criteria 

17 established in accordance with subparagraphs 

18 (A) and (B). 

19 ‘‘(c) INTEREST RATE.— 

20 ‘‘(1) IN GENERAL.—The interest rate for a 

21 Federal Direct Refinanced Private Loan is— 

22 ‘‘(A) in the case of a Federal Direct Refi23 nanced Private Loan for a private education 

24 loan originally issued for undergraduate post25 secondary educational expenses, a rate equal to 


pbinns on DSK79D2C42PROD with BILLS
16 

•S 768 IS

1 the rate for Federal Direct Stafford Loans and 

2 Federal Direct Unsubsidized Stafford Loans 

3 issued to undergraduate students for the 12- 

4 month period beginning on July 1, 2016, and 

5 ending on June 30, 2017; and 

6 ‘‘(B) in the case of a Federal Direct Refi7 nanced Private Loan for a private education 

8 loan originally issued for graduate or profes9 sional degree postsecondary educational ex10 penses, a rate equal to the rate for Federal Di11 rect Unsubsidized Stafford Loans issued to 

12 graduate or professional students for the 12- 

13 month period beginning on July 1, 2016, and 

14 ending on June 30, 2017. 

15 ‘‘(2) COMBINED UNDERGRADUATE AND GRAD16 UATE STUDY LOANS.—If a Federal Direct Refi17 nanced Private Loan is for a private education loan 

18 originally issued for both undergraduate and grad19 uate or professional postsecondary educational ex20 penses, the interest rate shall be a rate equal to the 

21 rate for Federal Direct PLUS Loans for the 12- 

22 month period beginning on July 1, 2016, and ending 

23 on June 30, 2017. 

24 ‘‘(3) FIXED RATE.—The applicable rate of in25 terest determined under this subsection for a FedVerDate Sep 11 2014 00:11 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S768.IS S768

pbinns on DSK79D2C42PROD with BILLS
17 

•S 768 IS

1 eral Direct Refinanced Private Loan shall be fixed 

2 for the period of the loan. 

3 ‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 

4 amount of a Federal Direct Refinanced Private Loan, or 

5 a Federal Direct Consolidated Loan to the extent such 

6 loan was used to repay a Federal Direct Refinanced Pri7 vate Loan, shall not be included in calculating a bor8 rower’s annual or aggregate loan limits under section 428 

9 or 428H. 

10 ‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE11 PAYMENT.—Notwithstanding sections 428K(a)(2)(A), 

12 428L(b)(2), 455(m)(3)(A), and 460(b), a Federal Direct 

13 Refinanced Private Loan, or any Federal Direct Consoli14 dation Loan to the extent such loan was used to repay 

15 a Federal Direct Refinanced Private Loan, shall not be 

16 eligible for any loan repayment or loan forgiveness pro17 gram under section 428K, 428L, or 460 or for the repay18 ment plan for public service employees under section 

19 455(m). 

20 ‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING

21 REQUIREMENT.— 

22 ‘‘(1) REPORTING REQUIRED.—Not later than 

23 180 days after the date of enactment of the Bank 

24 on Students Emergency Loan Refinancing Act, the 

25 Secretary, in consultation with the Secretary of the 


pbinns on DSK79D2C42PROD with BILLS
18 

•S 768 IS

1 Treasury and the Director of the Bureau of Con2 sumer Financial Protection, shall establish a re3 quirement that private educational lenders report 

4 the data described in paragraph (2) to the Sec5 retary, to Congress, to the Secretary of the Treas6 ury, and to the Director of the Bureau of Consumer 

7 Financial Protection, in order to allow for an assess8 ment of the private education loan market. 

9 ‘‘(2) CONTENTS OF REPORTING.—The data 

10 that private educational lenders shall report in ac11 cordance with paragraph (1) shall include each of 

12 the following about private education loans (as de13 fined in section 140(a) of the Truth in Lending Act 

14 (15 U.S.C. 1650(a))): 

15 ‘‘(A) The total amount of private education 

16 loan debt the lender holds. 

17 ‘‘(B) The total number of private edu18 cation loan borrowers the lender serves. 

19 ‘‘(C) The average interest rate on the out20 standing private education loan debt held by the 

21 lender. 

22 ‘‘(D) The proportion of private education 

23 loan borrowers who are in default on a loan 

24 held by the lender. 


pbinns on DSK79D2C42PROD with BILLS
19 

•S 768 IS

1 ‘‘(E) The proportion of the outstanding 

2 private education loan volume held by the lend3 er that is in default. 

4 ‘‘(F) The proportions of outstanding pri5 vate education loan borrowers who are 30, 60, 

6 and 90 days delinquent. 

7 ‘‘(G) The proportions of outstanding pri8 vate education loan volume that is 30, 60, and 

9 90 days delinquent. 

10 ‘‘(g) NOTIFICATION TO BORROWERS.—The Sec11 retary, in coordination with the Secretary of the Treasury 

12 and the Director of the Bureau of Consumer Financial 

13 Protection, shall undertake a campaign to alert borrowers 

14 about the availability of private student loan refinancing 

15 under this section.’’. 

16 (c) AMENDMENTS TO PUBLIC SERVICE REPAYMENT

17 PLAN PROVISIONS.—Section 455(m) of the Higher Edu18 cation Act of 1965 (20 U.S.C. 1087e(m)) is amended— 

19 (1) by redesignating paragraphs (3) and (4) as 

20 paragraphs (4) and (5), respectively; 

21 (2) by inserting after paragraph (2) the fol22 lowing: 

23 ‘‘(3) SPECIAL RULES FOR SECTION 460A

24 LOANS.— 


pbinns on DSK79D2C42PROD with BILLS
20 

•S 768 IS

1 ‘‘(A) REFINANCED FEDERAL DIRECT

2 LOANS.—Notwithstanding paragraph (1), in de3 termining the number of monthly payments 

4 that meet the requirements of such paragraph 

5 for an eligible Federal Direct Loan refinanced 

6 under section 460A that was originally a loan 

7 under this part, the Secretary shall include all 

8 monthly payments made on the original loan 

9 that meet the requirements of such paragraph. 

10 ‘‘(B) REFINANCED FFEL LOANS.—In the 

11 case of an eligible Federal Direct Loan refi12 nanced under section 460A that was originally 

13 a loan under part B, only monthly payments 

14 made after the date on which the loan was refi15 nanced may be included for purposes of para16 graph (1).’’; and 

17 (3) in paragraph (4)(A) (as redesignated by 

18 paragraph (1)), by inserting ‘‘(including any Federal 

19 Direct Stafford Loan, Federal Direct PLUS Loan, 

20 Federal Direct Unsubsidized Stafford Loan, or Fed21 eral Direct Consolidation Loan refinanced under sec22 tion 460A)’’ before the period at the end. 

23 (d) INCOME-BASED REPAYMENT.—Section 493C of 

24 the Higher Education Act of 1965 (20 U.S.C. 1098e) is 

25 amended by adding at the end the following: 


pbinns on DSK79D2C42PROD with BILLS
21 

•S 768 IS

1 ‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 

2 ‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL

3 LOANS.—In calculating the period of time during 

4 which a borrower of a loan that is refinanced under 

5 section 460A has made monthly payments for pur6 poses of subsection (b)(7), the Secretary shall deem 

7 the period to include all monthly payments made for 

8 the original loan, and all monthly payments made 

9 for the refinanced loan, that otherwise meet the re10 quirements of this section. 

11 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

12 LOANS.—In calculating the period of time during 

13 which a borrower of a Federal Direct Refinanced 

14 Private Loan under section 460B has made monthly 

15 payments for purposes of subsection (b)(7), the Sec16 retary shall include only payments— 

17 ‘‘(A) that are made after the date of the 

18 issuance of the Federal Direct Refinanced Pri19 vate Loan; and 

20 ‘‘(B) that otherwise meet the requirements 

21 of this section.’’. 


pbinns on DSK79D2C42PROD with BILLS
22 

•S 768 IS

1 TITLE II—FAIR SHARE TAX 

2 SEC. 201. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 

3 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

4 Internal Revenue Code of 1986 is amended by adding at 

5 the end the following new part: 

6 ‘‘PART VIII—FAIR SHARE TAX ON HIGH-INCOME 

7 TAXPAYERS 

‘‘Sec. 59B. Fair share tax. 

8 ‘‘SEC. 59B. FAIR SHARE TAX. 

9 ‘‘(a) GENERAL RULE.— 

10 ‘‘(1) PHASE-IN OF TAX.—In the case of any 

11 high-income taxpayer, there is hereby imposed for a 

12 taxable year (in addition to any other tax imposed 

13 by this subtitle) a tax equal to the product of— 

14 ‘‘(A) the amount determined under para15 graph (2), and 

16 ‘‘(B) a fraction (not to exceed 1)— 

17 ‘‘(i) the numerator of which is the ex18 cess of— 

19 ‘‘(I) the taxpayer’s adjusted 

20 gross income, over 

21 ‘‘(II) the dollar amount in effect 

22 under subsection (c)(1), and 


pbinns on DSK79D2C42PROD with BILLS
23 

•S 768 IS

1 ‘‘(ii) the denominator of which is the 

2 dollar amount in effect under subsection 

3 (c)(1). 

4 ‘‘(2) AMOUNT OF TAX.—The amount of tax de5 termined under this paragraph is an amount equal 

6 to the excess (if any) of— 

7 ‘‘(A) the tentative fair share tax for the 

8 taxable year, over 

9 ‘‘(B) the excess of— 

10 ‘‘(i) the sum of— 

11 ‘‘(I) the regular tax liability (as 

12 defined in section 26(b)) for the tax13 able year, determined without regard 

14 to any tax liability determined under 

15 this section, 

16 ‘‘(II) the tax imposed by section 

17 55 for the taxable year, plus 

18 ‘‘(III) the payroll tax for the tax19 able year, over 

20 ‘‘(ii) the credits allowable under part 

21 IV of subchapter A (other than sections 

22 27(a), 31, and 34). 

23 ‘‘(b) TENTATIVE FAIR SHARE TAX.—For purposes 

24 of this section— 


pbinns on DSK79D2C42PROD with BILLS
24 

•S 768 IS

1 ‘‘(1) IN GENERAL.—The tentative fair share tax 

2 for the taxable year is 30 percent of the excess of— 

3 ‘‘(A) the adjusted gross income of the tax4 payer, over 

5 ‘‘(B) the modified charitable contribution 

6 deduction for the taxable year. 

7 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

8 DEDUCTION.—For purposes of paragraph (1)— 

9 ‘‘(A) IN GENERAL.—The modified chari10 table contribution deduction for any taxable 

11 year is an amount equal to the amount which 

12 bears the same ratio to the deduction allowable 

13 under section 170 (section 642(c) in the case of 

14 a trust or estate) for such taxable year as— 

15 ‘‘(i) the amount of itemized deduc16 tions allowable under the regular tax (as 

17 defined in section 55) for such taxable 

18 year, determined after the application of 

19 section 68, bears to 

20 ‘‘(ii) such amount, determined before 

21 the application of section 68. 

22 ‘‘(B) TAXPAYER MUST ITEMIZE.—In the 

23 case of any individual who does not elect to 

24 itemize deductions for the taxable year, the 


pbinns on DSK79D2C42PROD with BILLS
25 

•S 768 IS

1 modified charitable contribution deduction shall 

2 be zero. 

3 ‘‘(c) HIGH-INCOME TAXPAYER.—For purposes of this 

4 section— 

5 ‘‘(1) IN GENERAL.—The term ‘high-income tax6 payer’ means, with respect to any taxable year, any 

7 taxpayer (other than a corporation) with an adjusted 

8 gross income for such taxable year in excess of 

9 $1,000,000 (50 percent of such amount in the case 

10 of a married individual who files a separate return). 

11 ‘‘(2) INFLATION ADJUSTMENT.— 

12 ‘‘(A) IN GENERAL.—In the case of a tax13 able year beginning after 2020, the $1,000,000 

14 amount under paragraph (1) shall be increased 

15 by an amount equal to— 

16 ‘‘(i) such dollar amount, multiplied by 

17 ‘‘(ii) the cost-of-living adjustment de18 termined under section 1(f)(3) for the cal19 endar year in which the taxable year be20 gins, determined by substituting ‘calendar 

21 year 2019’ for ‘calendar year 2016’ in sub22 paragraph (A)(ii) thereof. 

23 ‘‘(B) ROUNDING.—If any amount as ad24 justed under subparagraph (A) is not a multiple 


pbinns on DSK79D2C42PROD with BILLS
26 

•S 768 IS

1 of $10,000, such amount shall be rounded to 

2 the next lowest multiple of $10,000. 

3 ‘‘(d) PAYROLL TAX.—For purposes of this section, 

4 the payroll tax for any taxable year is an amount equal 

5 to the excess of— 

6 ‘‘(1) the taxes imposed on the taxpayer under 

7 sections 1401, 1411, 3101, 3201, and 3211(a) (to 

8 the extent such tax is attributable to the rate of tax 

9 in effect under section 3101) with respect to such 

10 taxable year or wages or compensation received dur11 ing such taxable year, over 

12 ‘‘(2) the deduction allowable under section 

13 164(f) for such taxable year. 

14 ‘‘(e) SPECIAL RULE FOR ESTATES AND TRUSTS.— 

15 For purposes of this section, in the case of an estate or 

16 trust, adjusted gross income shall be computed in the 

17 manner described in section 67(e). 

18 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP19 TER FOR CERTAIN PURPOSES.—The tax imposed under 

20 this section shall not be treated as tax imposed by this 

21 chapter for purposes of determining the amount of any 

22 credit under this chapter (other than the credit allowed 

23 under section 27(a)) or for purposes of section 55.’’. 


pbinns on DSK79D2C42PROD with BILLS
27 

•S 768 IS

1 (b) CLERICAL AMENDMENT.—The table of parts for 

2 subchapter A of chapter 1 of such Code is amended by 

3 adding at the end the following new item: 

‘‘PART VIII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2019. 

7 TITLE III—DEFICIT NEUTRAL IM8 PLEMENTATION OF STUDENT 

9 LOAN REFINANCING PRO10 GRAMS 

11 SEC. 301. DEFICIT NEUTRAL IMPLEMENTATION OF STU12 DENT LOAN REFINANCING PROGRAMS; 

13 BUDGETARY EFFECTS. 

14 (a) AMOUNT OF REVENUE.—The Secretary of Edu15 cation shall estimate the amount that is equal to the 

16 amount of the net increase in revenue received in the 

17 Treasury during the 10-year period beginning on the date 

18 of enactment of this Act attributable to the amendments 

19 made by title II of this Act. 

20 (b) DEFICIT-NEUTRAL TERMINATION OF THE REFI21 NANCING PROGRAM.—The Secretary of Education shall 

22 terminate the refinancing programs carried out under sec23 tions 460A and 460B of the Higher Education Act of 

24 1965 on the date that the net cost of carrying out such 

25 refinancing programs is equal to the amount of additional 


pbinns on DSK79D2C42PROD with BILLS
28 

•S 768 IS

1 revenue estimated under subsection (a) or on the date that 

2 is 2 years after the date of enactment of this Act, which3 ever occurs first. 

4 (c) DEFICIT REDUCTION.—Any remaining increase 

5 in revenue described in subsection (a) and not used for 

6 the refinancing programs carried out under sections 460A 

7 and 460B of the Higher Education Act of 1965 shall be 

8 returned to the general fund of the Treasury for Federal 

9 budget deficit reduction. 

10 (d) METHODOLOGY.—When estimating cost and rev11 enue under this section, the Secretary of Education shall 

12 utilize the accounting methods and assumptions that are 

13 used by the Congressional Budget Office, as of the date 

14 of enactment of this Act, to make such estimations. 

15 SEC. 302. BUDGETARY EFFECTS. 

16 The budgetary effects of this Act and the amend17 ments made by this Act shall not be entered on either 

18 PAYGO scorecard maintained pursuant to section 4(d) of 

19 the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 

20 933(d)). 

Æ 


pbinns on DSK79D2C42PROD with BILLS