Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Student Loan Repayment Assistance
Act of 2014''.

SEC. 2. RESTORATION AND AN OPTION TO EXTEND THE START OF THE REPAYMENT
PERIOD OF CERTAIN FEDERAL DIRECT LOANS.

(a) Restoration of Interest Subsidy During First 6-Month Grace
Period.--Section 428(a)(3)(A)(i)(I) of the Higher Education Act of 1965
(20 U.S.C. 1078(a)(3)(A)(i)(I)) is amended by inserting ''or, for a
Federal Direct Stafford Loan for which the first disbursement is made
on or after July 1, 2013, which accrues prior to the beginning of the
repayment period of the loan (except for interest which accrues during
the last 6 months prior to the beginning of such period, in the case of
a student who makes an election under section 2(b)(2) of the Student
Loan Repayment Assistance Act of 2014),'' before '', or''.
(b) Grace-Period Extension.--
(1) Amendment.--Section 428(b)(7) of the Higher Education
Act of 1965 (20 U.S.C. 1078(b)(7)) is amended--
(A) in subparagraph (A), by inserting ''or, in the
case of a student who makes an election under section
2(b)(2) of the Student Loan Repayment Assistance Act of
2014, 12 months'' after ''6 months''; and
(B) in subparagraph (D), by inserting ''or, in the
case of a student who makes an election under section
2(b)(2) of the Student Loan Repayment Assistance Act of
2014, the 12-month period'' after ''6-month period''.
(2) Election of extended grace period for certain fdsl and
fdus loans.--If the unemployment rate calculated by the Bureau
of Labor Statistics is greater than the natural rate of
unemployment (as established by the Board of Governors of the
Federal Reserve System), the Secretary of Education shall
provide an opportunity for each borrower who has a Federal
Direct Stafford Loan or Federal Direct Unsubsidized Stafford
Loan for which the first disbursement is made on or after July
1, 2013, to elect a 12-month grace period, in accordance with
section 428(b)(7) of the Higher Education Act of 1965, as
amended by this subsection, before beginning repayment. The
Secretary shall--
(A) notify each such borrower of the opportunity
for such an election not later than 45 days before the
start of the borrower's repayment period, as determined
under section 428(b)(7) of the Higher Education Act of
1965 as in effect on the day before the date of
enactment of this Act;
(B) advise each such borrower of the financial
consequences of electing such 12-month grace period;
and
(C) not require such a borrower to accept a 12-
month grace period in accordance with section 428(b)(7)
of the Higher Education Act of 1965 (as amended by this
subsection), unless the borrower specifically elects
such 12-month grace period not later than 14 days
before the start of the borrower's repayment period, as
determined under section 428(b)(7) of the Higher
Education Act of 1965 as in effect on the day before
the date of enactment of this Act.

SEC. 3. EXCLUSION FROM GROSS INCOME OF BENEFITS UNDER CERTAIN STUDENT
LOAN PAYMENT ASSISTANCE PROGRAMS.

(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 127
the following new section:

''SEC. 127A. STUDENT LOAN PAYMENT ASSISTANCE PROGRAMS.

''(a) In General.--Gross income of a qualified employee does not
include amounts paid or incurred by the employer for student loan
payment assistance provided to such employee if the assistance is
furnished pursuant to a program which is described in subsection (c).
''(b) Qualified Employee.--For purposes of this subsection, the
term 'qualified employee' means any employee who contributes (in
addition to any amount excluded from gross income under this section)
not less than $50 per month for payment of principal and interest on
the loans subject to the student loan payment assistance program.
''(c) Limitations.--
''(1) Assistance limitation.--The amount taken into account
under subsection (a) with respect to an individual for student
loan assistance with respect to student loan payments during a
taxable year shall not exceed $6,000.
''(2) Earned income limitation.--The amount excluded from
the income of an employee under subsection (a) for any taxable
year shall not exceed the earned income of such employee for
such taxable year.
''(d) Student Loan Payment Assistance Program.--
''(1) In general.--For purposes of this section a student
loan payment assistance program is a separate written plan of
an employer for the exclusive benefit of his employees to
provide such employees with student loan payment assistance
which meets the requirements of paragraphs (2) through (10) of
this subsection. If any plan would qualify as a student loan
payment assistance program but for a failure to meet the
requirements of this subsection, then, notwithstanding such
failure, such plan shall be treated as a student loan payment
assistance program in the case of employees who are not highly
compensated employees.
''(2) Discrimination.--The contributions or benefits
provided under the plan shall not discriminate in favor of
employees who are highly compensated employees (within the
meaning of section 414(q)).
''(3) Eligibility.--The program shall benefit employees who
qualify under a classification set up by the employer and found
by the Secretary not to be discriminatory in favor of employees
described in paragraph (2).
''(4) Principal shareholders or owners.--Not more than 25
percent of the amounts paid or incurred by the employer for
student loan payment assistance during the year may be provided
for the class of individuals who are shareholders or owners (or
their spouses or dependents), each of whom (on any day of the
year) owns more than 5 percent of the stock or of the capital
or profits interest in the employer.
''(5) No funding required.--A program referred to in
paragraph (1) is not required to be funded.
''(6) Notification of eligible employees.--Reasonable
notification of the availability and terms of the program shall
be provided to eligible employees.
''(7) Statement of expenses.--The plan shall furnish to an
employee, on or before January 31, a written statement showing
the amounts paid or expenses incurred by the employer in
providing student loan payment assistance to such employee
during the previous calendar year.
''(8) Benefits.--
''(A) In general.--A plan meets the requirements of
this paragraph if the average benefits provided to
employees who are not highly compensated employees
under all plans of the employer is at least 55 percent
of the average benefits provided to highly compensated
employees under all plans of the employer.
''(B) Salary reduction agreements.--For purposes of
subparagraph (A), in the case of any benefits provided
through a salary reduction agreement, a plan may
disregard any employees whose compensation is less than
$25,000. For purposes of this subparagraph, the term
'compensation' has the meaning given such term by
section 414(q)(4), except that, under rules prescribed
by the Secretary, an employer may elect to determine
compensation on any other basis which does not
discriminate in favor of highly compensated employees.
''(9) Contributions made directly to lender.--A plan meets
the requirements of this paragraph if all benefits provided
under the plan are paid directly to the holder of the
indebtedness referred to in subsection (d)(1)(A)(i).
''(10) Matching contributions.--A plan which meets the
requirements of paragraphs (2) through (9) shall not fail to be
treated as a program described in this subsection merely
because such plan provides for the employer to make matching
contributions with respect to employee contributions.
''(e) Definitions and Special Rules.--For purposes of this
section--
''(1) Student loan payment assistance.--
''(A) In general.--The term 'student loan payment
assistance' means the payment of principal or interest
on--
''(i) any indebtedness incurred by the
employee solely to pay qualified higher
education expenses (as defined in section 221)
which--
''(I) are paid or incurred within a
reasonable period of time before or
after the indebtedness was incurred,
and
''(II) are attributable to
education furnished during a period
during which the employee was an
eligible student, or
''(ii) any indebtedness used to refinance
indebtedness described in clause (i).
Such term shall not include any payment of principal or
interest on indebtedness owed to a person who is
related (within the meaning of section 267(b) or
707(b)(1)) to the taxpayer or to any person by reason
of a loan under any qualified employer plan (as defined
in section 72(p)(4)) or under any contract referred to
in section 72(p)(5).
''(B) Eligible student.--The term 'eligible
student' has the meaning given such term by section
25A(b)(3).
''(C) Dependent.--The term 'dependent' has the
meaning given such term by section 152 (determined
without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof).
''(2) Earned income.--The term 'earned income' shall have
the meaning given such term in section 32(c)(2), but such term
shall not include any amounts paid or incurred by an employer
for student loan payment assistance to an employee.
''(3) Employee.--The term 'employee' includes, for any
year, an individual who is an employee within the meaning of
section 401(c)(1) (relating to self-employed individuals).
''(4) Employer.--An individual who owns the entire interest
in an unincorporated trade or business shall be treated as his
own employer. A partnership shall be treated as the employer of
each partner who is an employee within the meaning of paragraph
(3).
''(5) Attribution rules.--
''(A) Ownership of stock.--Ownership of stock in a
corporation shall be determined in accordance with the
rules provided under subsections (d) and (e) of section
1563 (without regard to section 1563(e)(3)(C)).
''(B) Interest in unincorporated trade or
business.--The interest of an employee in a trade or
business which is not incorporated shall be determined
in accordance with regulations prescribed by the
Secretary, which shall be based on principles similar
to the principles which apply in the case of
subparagraph (A).
''(6) Utilization test not applicable.--A student loan
payment assistance program shall not be held or considered to
fail to meet any requirements of subsection (c) (other than
paragraphs (4) and (8) thereof) merely because of utilization
rates for the different types of assistance made available
under the program.
''(7) Disallowance of excluded amounts as credit or
deduction.--No deduction or credit shall be allowed to the
employee under any other section of this chapter for any amount
excluded from the gross income of the employee by reason of
this section.
''(8) Treatment of salary reduction amounts.--Any matching
contribution withheld from an employee under a student loan
payment assistance program pursuant to a salary reduction
agreement shall be treated for purposes of this title as an
amount paid by the employee and not as an amount paid by the
employer.''.
(b) Conforming Amendments.--Sections 221(d)(2)(A), 414 (n)(3)(C)
and (t)(2), 3121(a)(18), 3306(b)(13), 3401(a)(18), and 6039D(d)(1) of
such Code are each amended by inserting ''127A,'' after ''127,''.
(c) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 127 the following new item:

''Sec. 127A. Student loan payment assistance programs.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 4. DEDUCTION FOR STUDENT LOAN PAYMENTS WHICH ARE MATCHED BY AN
EMPLOYER.

(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 224
as section 225 and by inserting after section 223 the following new
section:

''SEC. 224. DEDUCTION FOR STUDENT LOAN PAYMENTS WHICH ARE MATCHED BY AN
EMPLOYER.

''(a) In General.--In the case of an individual who is a qualified
employee (as defined in section 127A), there shall be allowed as a
deduction an amount equal to the student loan payments made by such
individual with respect to which an employer of such individual makes
matching contributions under a student loan payment assistance program
which are excludible from the gross income of such employee under
section 127A.
''(b) Annual Limitation.--The amount allowable as a deduction under
subsection (a) with respect to any individual for any taxable year
shall not exceed $6,000.
''(c) Lifetime Limitation.--The amount allowable as a deduction
under subsection (a) with respect to any individual for any taxable
year shall not exceed the excess of--
''(1) $50,000, over
''(2) the aggregate amount allowable as a deduction under
subsection (a) with respect to such individual for all prior
taxable years.
''(d) Denial of Double Benefit.--Any amount excluded from the gross
income of an individual under section 127A shall not be treated as an
amount paid by such individual for purposes of this section. The amount
of principal and interest with respect to which a deduction is allowed
under this section shall not be taken into account in determining the
amount of any other deduction or credit allowed under this chapter.''.
(b) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by redesignating the
item relating to section 224 as an item relating to section 225 and by
inserting after the item relating to section 223 the following new
item:

''Sec. 224. Deduction for student loan payments which are matched by an
employer.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
Output:
Student Loan Repayment Assistance Act of 2014 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow borrowers of William D. Ford Federal Direct Stafford Loans to opt to extend the period before they must begin to repay such loans to one year after they cease to carry at least one-half the normal full-time academic workload if the unemployment rate is greater than the natural rate of employment (as established by the Board of Governors of the Federal Reserve System). (Currently, the repayment period for Direct Stafford Loans begins six months after borrowers cease to carry at least one-half the normal full-time academic workload.) Subsidizes the interest that accrues on Direct Stafford Loans for the first six months of that extended grace period. Makes this Act applicable to Direct Stafford Loans first disbursed on or after July 1, 2013. Amends the Internal Revenue Code to exclude from the gross income of an employee amounts paid by an employer under a student loan payment assistance program. Requires participating employees to pay at least $50 per month on their student loans (in addition to the amount excluded from their gross income under such program). Limits the amount of such exclusion to $6,000 in a taxable year. Requires an employer student loan payment assistance program to be a separate written plan of an employer to provide employees with student loan payment assistance. Defines "student loan payment assistance" as the payment of principal or interest on any indebtedness incurred by an employee solely to pay qualified higher education expenses that are paid or incurred within a reasonable time before or after such indebtedness was incurred and that are attributable to education furnished during a period in which such employee was a student eligible for federal financial assistance. Allows an employee to take an income tax deduction in an amount equal to the employee's student loan payments that are matched by excludible employer contributions under a student loan payment assistance program. Limits the amount of such deduction to $6,000 in a taxable year and $50,000 over a lifetime.