I 
113TH CONGRESS 
2D SESSION 
H. R. 4582 
To amend the Higher Education Act of 1965 to provide for the refinancing 
of certain Federal student loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2014 
Mr. TIERNEY (for himself, Mr. GEORGE MILLER of California, Mr. COURT-
NEY, Mr. HINOJOSA, Mr. HOLT, Mr. GRIJALVA, Mr. BISHOP of New 
York, Mr. SCOTT of Virginia, Ms. FUDGE, Mr. SABLAN, Ms. WILSON of 
Florida, Ms. BONAMICI, Mr. TAKANO, Ms. LEE of California, Mr. BLU-
MENAUER, Mr. VARGAS, Mr. CASTRO of Texas, Ms. SHEA-PORTER, Ms. 
NORTON, Ms. TSONGAS, Mr. POCAN, and Ms. KUSTER) 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 com-
mittee concerned 
A BILL 
To amend the Higher Education Act of 1965 to provide 
for the refinancing of certain Federal 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, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bank on Students 
Emergency Loan Refinancing Act’’. 
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SEC. 2. REFINANCING PROGRAMS. 
(a) PROGRAM AUTHORITY.—Section 451(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 
amended— 
(1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 
and 
(2) by inserting ‘‘; and (3) to make loans under 
section 460A and section 460B’’ after ‘‘section 
459A’’. 
(b) REFINANCING PROGRAM.—Part D of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087a et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 
LOANS. 
‘‘(a) IN GENERAL.—Beginning not later than 180 
days after the date of enactment of the Bank on Students 
Emergency Loan Refinancing Act, the Secretary shall es-
tablish a program under which the Secretary, upon the 
receipt of an application from a qualified borrower, re-
issues the borrower’s original loan under this part or part 
B as a loan under this part, in accordance with the provi-
sions of this section, in order to permit the borrower to 
obtain the interest rate provided under subsection (c). 
‘‘(b) REISSUING LOANS.— 
‘‘(1) FEDERAL DIRECT LOANS.—Upon applica-
tion of a qualified borrower, the Secretary shall re-
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‘‘(A) The Secretary shall pay the proceeds 
of such reissued loan to the eligible lender of 
the loan made, insured, or guaranteed under 
part B, in order to discharge the borrower from 
any remaining obligation to the lender with re-
spect to the original loan. 
‘‘(B) The Secretary shall reissue— 
‘‘(i) a loan originally made, insured, 
or guaranteed under section 428 as a Fed-
eral Direct Stafford Loan; 
‘‘(ii) a loan originally made, insured, 
or guaranteed under section 428B as a 
Federal Direct PLUS Loan; 
‘‘(iii) a loan originally made, insured, 
or guaranteed under section 428H as a 
Federal 
Direct 
Unsubsidized 
Stafford 
Loan; and 
‘‘(iv) a loan originally made, insured, 
or guaranteed under section 428C as a 
Federal Direct Consolidation Loan. 
‘‘(C) The interest rate for each loan re-
issued under this paragraph shall be the rate 
provided under subsection (c). 
‘‘(c) INTEREST RATES.— 
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shall retain the same repayment term that was in ef-
fect on the original loan. Nothing in this paragraph 
shall be construed to prevent a borrower from elect-
ing a different repayment plan at any time in ac-
cordance with section 455(d)(3). 
‘‘(3) ADMINISTRATIVE
FEE.—The Secretary 
shall charge the borrower of a loan reissued under 
this section an administrative fee of not more than 
0.5 percent of the sum of the unpaid principal, and 
accrued unpaid interest and late charges, of the 
original loan. 
‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified borrower’ means a bor-
rower— 
‘‘(A) of a loan under this part or part B 
for which the first disbursement was made, or 
the application for a consolidation loan was re-
ceived, before July 1, 2013; and 
‘‘(B) who meets the eligibility requirements 
based on income or debt-to-income ratio estab-
lished by the Secretary. 
‘‘(2) INCOME REQUIREMENTS.—Not later than 
180 days after the date of enactment of the Bank 
on Students Emergency Loan Refinancing Act, the 
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Secretary shall establish eligibility requirements 
based on income or debt-to-income ratio that take 
into consideration providing access to refinancing 
under this section for borrowers with the greatest fi-
nancial need. 
‘‘(f) EXPIRATION OF AUTHORITY.—The Secretary’s 
authority to reissue loans under this section shall expire 
on the date that is determined in accordance with section 
4 of the Bank on Students Emergency Loan Refinancing 
Act. 
‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 
The term ‘eligible private education loan’ means a 
private education loan, as defined in section 140 of 
the Truth in Lending Act (15 U.S.C. 1650), that— 
‘‘(A) was disbursed to the borrower before 
July 1, 2013; and 
‘‘(B) was for the borrower’s own postsec-
ondary educational expenses for an eligible pro-
gram at an institution of higher education par-
ticipating in the loan program under this part, 
as of the date that the loan was disbursed. 
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‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOAN.—The term ‘Federal Direct Refinanced Pri-
vate Loan’ means a loan issued under subsection 
(b)(1). 
‘‘(3) PRIVATE
EDUCATIONAL
LENDER.—The 
term ‘private educational lender’ has the meaning 
given the term in section 140 of the Truth in Lend-
ing Act (15 U.S.C. 1650). 
‘‘(4) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means an individual who— 
‘‘(A) has an eligible private education loan; 
‘‘(B) has been current on payments on the 
eligible private education loan for the 6 months 
prior to the date of the qualified borrower’s ap-
plication for refinancing under this section, and 
is in good standing on the loan at the time of 
such application; 
‘‘(C) is not in default on the eligible pri-
vate education loan or on any loan made, in-
sured, or guaranteed under this part or part B 
or E; and 
‘‘(D) meets the eligibility requirements 
based on income or debt-to-income ratio estab-
lished by the Secretary under subsection (b)(2). 
‘‘(b) PROGRAM AUTHORIZED.— 
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‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Treasury, shall carry 
out a program under which the Secretary, upon ap-
plication by a qualified borrower who has an eligible 
private education loan, shall issue such borrower a 
loan under this part in accordance with the fol-
lowing: 
‘‘(A) The loan issued under this program 
shall be in an amount equal to the sum of the 
unpaid principal, accrued unpaid interest, and 
late charges of the private education loan and 
the origination fee under subsection (f). 
‘‘(B) The Secretary shall pay the proceeds 
of the loan issued under this program to the 
private educational lender of the private edu-
cation loan, in order to discharge the qualified 
borrower from any remaining obligation to the 
lender with respect to the original loan. 
‘‘(C) The Secretary shall require that the 
qualified borrower undergo loan counseling that 
provides all of the information and counseling 
required under clauses (i) through (viii) of sec-
tion 485(b)(1)(A) before the loan is reissued in 
accordance with this section, and before the 
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proceeds of such loan are paid to the private 
educational lender. 
‘‘(D) The Secretary shall issue the loan as 
a Federal Direct Refinanced Private Loan, 
which shall have the same terms, conditions, 
and benefits as a Federal Direct Unsubsidized 
Stafford Loan, except as otherwise provided in 
this section. 
‘‘(2) INCOME REQUIREMENTS.—Not later than 
180 days after the date of enactment of the Bank 
on Students Emergency Loan Refinancing Act, the 
Secretary shall establish eligibility requirements 
based on income or debt-to-income ratio that take 
into consideration providing access to refinancing 
under this section for borrowers with the greatest fi-
nancial need. 
‘‘(c) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—The interest rate for a 
Federal Direct Refinanced Private Loan is— 
‘‘(A) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for undergraduate post-
secondary educational expenses, a rate equal to 
the rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
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issued to undergraduate students for the 12- 
month period beginning on July 1, 2013, and 
ending on June 30, 2014; and 
‘‘(B) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for graduate or profes-
sional degree postsecondary educational ex-
penses, a rate equal to the rate for Federal Di-
rect Unsubsidized Stafford Loans issued to 
graduate or professional students for the 12- 
month period beginning on July 1, 2013, and 
ending on June 30, 2014. 
‘‘(2) COMBINED UNDERGRADUATE AND GRAD-
UATE
STUDY
LOANS.—If a Federal Direct Refi-
nanced Private Loan is for a private educational 
loan originally issued for both undergraduate and 
graduate or professional postsecondary educational 
expenses, the interest rate shall be a rate equal to 
the rate for Federal Direct PLUS Loans for the 12- 
month period beginning on July 1, 2013, and ending 
on June 30, 2014. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under this subsection for a Fed-
eral Direct Refinanced Private Loan shall be fixed 
for the period of the loan. 
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‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 
amount of a Federal Direct Refinanced Private Loan, or 
a Federal Direct Consolidated Loan to the extent such 
loan was used to repay a Federal Direct Refinanced Pri-
vate Loan, shall not be included in calculating a bor-
rower’s annual or aggregate loan limits under section 428 
or 428H. 
‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE-
PAYMENT.—Notwithstanding 
sections 
428K(a)(2)(A), 
428L(b)(2), 455(m)(3)(A), and 460(b), a Federal Direct 
Refinanced Private Loan, or any Federal Direct Consoli-
dation Loan to the extent such loan was used to repay 
a Federal Direct Refinanced Private Loan, shall not be 
eligible for any loan repayment or loan forgiveness pro-
gram under section 428K, 428L, or 460 or for the repay-
ment plan for public service employees under section 
455(m). 
‘‘(f) ORIGINATION FEE.—The Secretary shall charge 
the borrower of a Federal Direct Refinanced Private Loan 
an origination fee that equals the origination fee charged 
for Federal Direct Unsubsidized Stafford Loans disbursed 
on the date upon which the Federal Direct Refinanced 
Private Loan is issued. 
‘‘(g) EXPIRATION OF AUTHORITY.—The Secretary’s 
authority to reissue loans under this section shall expire 
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on the date that is determined in accordance with section 
4 of the Bank on Students Emergency Loan Refinancing 
Act.’’. 
(c) AMENDMENTS TO PUBLIC SERVICE REPAYMENT 
PLAN PROVISIONS.—Section 455(m) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(m)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) SPECIAL
RULES
FOR
SECTION
460A 
LOANS.— 
‘‘(A) 
REFINANCED
FEDERAL
DIRECT 
LOANS.—Notwithstanding paragraph (1), in de-
termining the number of monthly payments 
that meet the requirements of such paragraph 
for an eligible Federal Direct Loan reissued 
under section 460A that was originally a loan 
under this part, the Secretary shall include all 
monthly payments made on the original loan 
that meet the requirements of such paragraph. 
‘‘(B) REFINANCED FFEL LOANS.—In the 
case of an eligible Federal Direct Loan reissued 
under section 460A that was originally a loan 
under part B, only monthly payments made 
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after the date on which the loan was reissued 
may be included for purposes of paragraph 
(1).’’; and 
(3) in paragraph (4)(A) (as redesignated by 
paragraph (1)), by inserting ‘‘(including any Federal 
Direct Stafford Loan, Federal Direct PLUS Loan, 
Federal Direct Unsubsidized Stafford Loan, or Fed-
eral Direct Consolidation Loan reissued under sec-
tion 460A)’’ before the period at the end. 
(d) INCOME-BASED REPAYMENT.—Section 493C of 
the Higher Education Act of 1965 (20 U.S.C. 1098e) is 
amended by adding at the end the following: 
‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 
‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL 
LOANS.—In calculating the period of time during 
which a borrower of a loan that is reissued under 
section 460A has made monthly payments for pur-
poses of subsection (b)(7), the Secretary shall deem 
the period to include all monthly payments made for 
the original loan, and all monthly payments made 
for the reissued loan, that otherwise meet the re-
quirements of this section. 
‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOANS.—In calculating the period of time during 
which a borrower of a Federal Direct Refinanced 
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Private Loan under section 460B has made monthly 
payments for purposes of subsection (b)(7), the Sec-
retary shall include only payments— 
‘‘(A) that are made after the date of the 
issuance of the Federal Direct Refinanced Pri-
vate Loan; and 
‘‘(B) that otherwise meet the requirements 
of this section.’’. 
SEC. 3. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 
(a) IN GENERAL.—Subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME 
TAXPAYERS 
‘‘Sec. 59B. Fair share tax. 
‘‘SEC. 59B. FAIR SHARE TAX. 
‘‘(a) GENERAL RULE.— 
‘‘(1) PHASE-IN OF TAX.—In the case of any 
high-income taxpayer, there is hereby imposed for a 
taxable year (in addition to any other tax imposed 
by this subtitle) a tax equal to the product of— 
‘‘(A) the amount determined under para-
graph (2), and 
‘‘(B) a fraction (not to exceed 1)— 
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‘‘(i) the numerator of which is the ex-
cess of— 
‘‘(I) 
the 
taxpayer’s 
adjusted 
gross income, over 
‘‘(II) the dollar amount in effect 
under subsection (c)(1), and 
‘‘(ii) the denominator of which is the 
dollar amount in effect under subsection 
(c)(1). 
‘‘(2) AMOUNT OF TAX.—The amount of tax de-
termined under this paragraph is an amount equal 
to the excess (if any) of— 
‘‘(A) the tentative fair share tax for the 
taxable year, over 
‘‘(B) the excess of— 
‘‘(i) the sum of— 
‘‘(I) the regular tax liability (as 
defined in section 26(b)) for the tax-
able year, 
‘‘(II) the tax imposed by section 
55 for the taxable year, plus 
‘‘(III) the payroll tax for the tax-
able year, over 
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