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 refi-
nanced 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 Com-
mittee on Education and the Workforce, and in addition to the Com-
mittee 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Student Loan Relief 
Act of 2015’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to spur economic growth 
by establishing a mechanism to allow borrowers of Federal 
student loans to refinance their loans in order— 
(1) to allow credit-worthy borrowers to get a 
lower interest rate than the Federal rate; 
(2) to encourage innovation in the education re-
financing markets; and 
(3) to promote the participation of private cap-
ital in the education refinancing markets. 
TITLE I—REFINANCING 
STUDENT LOANS 
SEC. 101. DEFINITIONS. 
In this title— 
(1) the term ‘‘Federal student loan’’ means a 
loan made, insured, or guaranteed under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.); and 
(2) the term ‘‘Secretary’’ means the Secretary 
of the Treasury, other than in the context of the 
Secretary of Education. 
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SEC. 102. TEMPORARY AUTHORITY TO CREATE A CREDIT 
FACILITY TO INCREASE MARKET EFFICIENCY 
IN THE STUDENT LOAN MARKET. 
(a) AUTHORITY.— 
(1) IN
GENERAL.—The Secretary, notwith-
standing any provision of section 484 of the Higher 
Education Act of 1965 (20 U.S.C. 1091), is author-
ized to facilitate Federal student loan refinancing 
into the private market to ensure that borrowers pay 
lower interest rates that are commensurate with 
credit risk, so that they may pursue more economi-
cally productive activities, such as home purchases 
and small business formation. 
(2) NO NET COST TO GOVERNMENT.—Mecha-
nisms established under this subsection shall not re-
sult in any net cost to the Federal Government, as 
determined jointly by the Secretary, the Secretary of 
Education, and the Director of the Office of Man-
agement and Budget. 
(3) FEDERAL
GUARANTEE.—A private loan 
that results from refinancing under a program es-
tablished under the authority of this section shall re-
ceive a Federal Government guarantee of 95 percent 
of the private loan, including accrued interest on 
such loan. 
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(4) DISCLOSURES.—Each lender of a prospec-
tive borrower of a private loan that would result 
from refinancing under a program established under 
the authority of this section shall disclose to the pro-
spective borrower the information described in sec-
tion 428C(b)(1)(F) of the Higher Education Act of 
1965 (20 U.S.C. 1078–3(b)(1)(F)). 
(b) PUBLIC AWARENESS.—The Secretary, in con-
sultation with the Secretary of Education, shall— 
(1) begin a national awareness campaign to 
alert all Federal student loan borrowers who may 
benefit from any program or facilities established 
under this section; and 
(2) include in the campaign under paragraph 
(1) a disclosure that a private loan that results from 
refinancing under a program established under the 
authority of this section is not eligible for income 
driven repayment or loan forgiveness. 
(c) EXPIRATION OF AUTHORITY.—Three years after 
the date on which a credit facility is established under this 
Act, and not later than 5 years after the date of enactment 
of this Act, any new lending, purchase, or other activity 
initiated through the facilities established by the Secretary 
under subsection (a) shall cease, except the Federal guar-
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antee described in subsection (a)(3) shall continue for the 
life of the private loan. 
TITLE II—EXCLUSION FOR EM-
PLOYER PAYMENT OF INTER-
EST 
ON 
CERTAIN 
REFI-
NANCED STUDENT LOANS 
SEC. 201. EXCLUSION FOR EMPLOYER PAYMENT OF INTER-
EST ON CERTAIN REFINANCED STUDENT 
LOANS. 
(a) IN GENERAL.—Paragraph (1) of section 127(c) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of subparagraph (A), by redesig-
nating subparagraph (B) as subparagraph (C), and by in-
serting after subparagraph (A) the following new subpara-
graph: 
‘‘(B) the payment by an employer, whether 
paid to the employee or to a lender, of any in-
debtedness of the employee under a qualified 
education refinance loan or any interest relating 
to such a loan, and’’. 
(b) QUALIFIED EDUCATION REFINANCE LOAN.— 
Subsection (c) of section 127 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new paragraph: 
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‘‘(8) 
QUALIFIED
EDUCATION
REFINANCE 
LOAN.—The term ‘qualified education refinance 
loan’ means any indebtedness used solely to refi-
nance a qualified education loan (within the meaning 
of section 221(d)(1)) with respect to which the lend-
er offers the borrower protection in the event of un-
employment or financial hardship (as reasonably de-
termined by the lender, including periods of forbear-
ance or career assistance).’’. 
(c) CONFORMING AMENDMENT; DENIAL OF DOUBLE 
BENEFIT.—Paragraph (1) of section 221(e) of the Inter-
nal Revenue Code of 1986 is amended by inserting before 
the period the following: ‘‘, or for which an exclusion is 
allowable under section 127 to the taxpayer’s employer by 
reason of the payment by such employer of any indebted-
ness on a qualified education loan of the taxpayer’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid after December 
31, 2015. 
Æ 
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