I 

114TH CONGRESS 

1ST SESSION H. R. 4102 

To provide for the establishment of a mechanism to allow borrowers of 

Federal student loans to refinance their loans, to amend the Internal 

Revenue Code of 1986 to extend the exclusion for employer-provided 

educational assistance to employer payment of interest on certain refinanced student loans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2015 

Mrs. COMSTOCK introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To provide for the establishment of a mechanism to allow 

borrowers of Federal student loans to refinance their 

loans, to amend the Internal Revenue Code of 1986 

to extend the exclusion for employer-provided educational 

assistance to employer payment of interest on certain 

refinanced 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Student Loan Relief 

3 Act of 2015’’. 

4 SEC. 2. PURPOSE. 

5 The purpose of this Act is to spur economic growth 

6 by establishing a mechanism to allow borrowers of Federal 

7 student loans to refinance their loans in order— 

8 (1) to allow credit-worthy borrowers to get a 

9 lower interest rate than the Federal rate; 

10 (2) to encourage innovation in the education re11 financing markets; and 

12 (3) to promote the participation of private cap13 ital in the education refinancing markets. 

14 TITLE I—REFINANCING 

15 STUDENT LOANS 

16 SEC. 101. DEFINITIONS. 

17 In this title— 

18 (1) the term ‘‘Federal student loan’’ means a 

19 loan made, insured, or guaranteed under title IV of 

20 the Higher Education Act of 1965 (20 U.S.C. 1070 

21 et seq.); and 

22 (2) the term ‘‘Secretary’’ means the Secretary 

23 of the Treasury, other than in the context of the 

24 Secretary of Education. 


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1 SEC. 102. TEMPORARY AUTHORITY TO CREATE A CREDIT 

2 FACILITY TO INCREASE MARKET EFFICIENCY 

3 IN THE STUDENT LOAN MARKET. 

4 (a) AUTHORITY.— 

5 (1) IN GENERAL.—The Secretary, notwith6 standing any provision of section 484 of the Higher 

7 Education Act of 1965 (20 U.S.C. 1091), is author8 ized to facilitate Federal student loan refinancing 

9 into the private market to ensure that borrowers pay 

10 lower interest rates that are commensurate with 

11 credit risk, so that they may pursue more economi12 cally productive activities, such as home purchases 

13 and small business formation. 

14 (2) NO NET COST TO GOVERNMENT.—Mecha15 nisms established under this subsection shall not re16 sult in any net cost to the Federal Government, as 

17 determined jointly by the Secretary, the Secretary of 

18 Education, and the Director of the Office of Man19 agement and Budget. 

20 (3) FEDERAL GUARANTEE.—A private loan 

21 that results from refinancing under a program es22 tablished under the authority of this section shall re23 ceive a Federal Government guarantee of 95 percent 

24 of the private loan, including accrued interest on 

25 such loan. 


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1 (4) DISCLOSURES.—Each lender of a prospec2 tive borrower of a private loan that would result 

3 from refinancing under a program established under 

4 the authority of this section shall disclose to the pro5 spective borrower the information described in sec6 tion 428C(b)(1)(F) of the Higher Education Act of 

7 1965 (20 U.S.C. 1078–3(b)(1)(F)). 

8 (b) PUBLIC AWARENESS.—The Secretary, in con9 sultation with the Secretary of Education, shall— 

10 (1) begin a national awareness campaign to 

11 alert all Federal student loan borrowers who may 

12 benefit from any program or facilities established 

13 under this section; and 

14 (2) include in the campaign under paragraph 

15 (1) a disclosure that a private loan that results from 

16 refinancing under a program established under the 

17 authority of this section is not eligible for income 

18 driven repayment or loan forgiveness. 

19 (c) EXPIRATION OF AUTHORITY.—Three years after 

20 the date on which a credit facility is established under this 

21 Act, and not later than 5 years after the date of enactment 

22 of this Act, any new lending, purchase, or other activity 

23 initiated through the facilities established by the Secretary 

24 under subsection (a) shall cease, except the Federal guarVerDate Sep 11 2014 00:10 Nov 25, 2015 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4102.IH H4102

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1 antee described in subsection (a)(3) shall continue for the 

2 life of the private loan. 

3 TITLE II—EXCLUSION FOR EM4 PLOYER PAYMENT OF INTER5 EST ON CERTAIN REFI6 NANCED STUDENT LOANS 

7 SEC. 201. EXCLUSION FOR EMPLOYER PAYMENT OF INTER8 EST ON CERTAIN REFINANCED STUDENT 

9 LOANS. 

10 (a) IN GENERAL.—Paragraph (1) of section 127(c) 

11 of the Internal Revenue Code of 1986 is amended by strik12 ing ‘‘and’’ at the end of subparagraph (A), by redesig13 nating subparagraph (B) as subparagraph (C), and by in14 serting after subparagraph (A) the following new subpara15 graph: 

16 ‘‘(B) the payment by an employer, whether 

17 paid to the employee or to a lender, of any in18 debtedness of the employee under a qualified 

19 education refinance loan or any interest relating 

20 to such a loan, and’’. 

21 (b) QUALIFIED EDUCATION REFINANCE LOAN.— 

22 Subsection (c) of section 127 of the Internal Revenue Code 

23 of 1986 is amended by adding at the end the following 

24 new paragraph: 


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1 ‘‘(8) QUALIFIED EDUCATION REFINANCE

2 LOAN.—The term ‘qualified education refinance 

3 loan’ means any indebtedness used solely to refi4 nance a qualified education loan (within the meaning 

5 of section 221(d)(1)) with respect to which the lend6 er offers the borrower protection in the event of un7 employment or financial hardship (as reasonably de8 termined by the lender, including periods of forbear9 ance or career assistance).’’. 

10 (c) CONFORMING AMENDMENT; DENIAL OF DOUBLE

11 BENEFIT.—Paragraph (1) of section 221(e) of the Inter12 nal Revenue Code of 1986 is amended by inserting before 

13 the period the following: ‘‘, or for which an exclusion is 

14 allowable under section 127 to the taxpayer’s employer by 

15 reason of the payment by such employer of any indebted16 ness on a qualified education loan of the taxpayer’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to expenses paid after December 

19 31, 2015. 

Æ 


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