,,ii  #aac? ,,congress  #a/ ,session    
,s4 #abff  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #bg1 #bjac ,mr4  
,br[n 7= himself1 ,ms4 ,heitkamp1 ,mr4  
,durb91 ,mrs4 ,murray1 & ,mrs4          
,gillibr&7 introduc$ ! foll[+ bill2 :i* 
0 read twice & ref]r$ to ! ,committee on
 ,heal?1 ,education1 ,labor1 & ,p5sions 
,a ,,bill  ,to provide = ! e/abli%m5t ( 
a me*anism to all[ borr[]s ( private    
education loans to ref9ance _! loans1 & 
= o!r purposes4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,ref9anc+          
,education ,fund+ to ,inve/ 7,,refi7 = !
 ,future ,act ( #bjac4  #b4 ,f9d+s &    
purpose  7a7 ,f9d+s ,congress f9ds t--  
7#a7 !re is approximately               
#a1ajj1jjj1jjj1jjj ( out/&+ /ud5t loan  
debt 9 ! ,unit$ ,/ates1 includ+ m ?an   
#aej1jjj1jjj1jjj 9 private education    
loans2  7#b7 z ( #bjjh1 #ha p]c5t (     
individuals graduat+ ) an und]graduate  
degree ) m ?an #dj1jjj 9 /ud5t loans _h 
a private education loan2  7#c7 ! limit$
 numb] ( l5d]s 9 ! private education    

loan m>ketplace r$uce ! ability (       
borr[]s ) private education loans to    
re/ructure1 ref9ance1 or negotiate      
repaym5t t]ms = _! curr5t loans1 lead+  
to excessive debt burd5s & pot5tial     
default2 &  7#d7 excessive /ud5t        
indebt$ness r$uces economic activity1   
?reat5s home[n]%ip1 hurts small bus9ess 
gr[?1 & limits opportunities = economic 
expansion 9 rural communities4  7b7     
,purpose ,! purpose ( ?is ,act is to    
spur economic gr[?1 by e/abli%+ a       
me*anism to all[ borr[]s ( private      
education loans to ref9ance _! loans 9  
ord]--  7#a7 to facilitate great]       
competition 9 ! private education l5d+ &
 ref9anc+ m>kets2  7#b7 to address      
ineffici5cies 9 ! private education l5d+
 & ref9anc+ m>kets2  7#c7 to enc\rage   
innovation 9 ! private education        
ref9anc+ m>kets2 &  7#d7 to promote !   
p>ticipation ( private capital 9 !      
private education ref9anc+ m>kets4  #c4 
,def9itions ,9 ?is ,act--  7#a7 ! t]m   
private education loan has ! same mean+ 

z 9 section #adj7;a7 ( ! ,tru? 9 ,l5d+  
,act 7#ae ,u4,s4,c4 #afej7;a772 &  7#b7 
! t]m ,secret>y means ! ,secret>y ( !   
,treasury1 o!r ?an 9 ! context ( !      
,secret>y ( ,education4  #d4 ,tempor>y  
au?ority to create a cr$it facility to  
increase m>ket effici5cy 9 ! /ud5t loan 
m>ket  7a7 ,au?ority  7#a7 ,9 g5]al     
7,a7 ,cr$it facilities au?orization ,^u 
a det]m9ation by ! ,secret>y t borr[]s  
are unable to secure adequate cr$it     
accommodations ) exi/+ private education
 loans1 ! ,secret>y1 not)/&+ any        
provision ( section #dhd ( ! ,high]     
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajia71 is au?oriz$ to e/abli% l5d+1    
pur*ase1 & o!r cr$it facilities to--    
7i7 accommodate reasonable ref9anc+     
opportunities or o!r loan adju/m5ts t-- 
7,i7 improve ! su/a9ability ( paym5ts = 
! borr[]2 &  7,,ii7 r$uce ! likelihood (
 del9qu5cy & default on private         
education loans2  7ii7 b5efit borr[]s t 
are mo/ likely to h private /ud5t debt  
s]vice obligations t repres5t a         

disproportionate %>e ( _! income2 &     
7iii7 ensure t borr[]s pay l[] int]e/   
rates t are comm5surate ) cr$it risk1 s 
t !y may pursue m economically          
productive activities1 su* z home       
pur*ases & small bus9ess =mation4  7,b7 
,consultation  7i7 ,9 g5]al ,any        
det]m9ation "u subp>agraph 7,a7 %all be 
made jo9tly ) ! ,secret>y ( ,education &
 ! ,director ( ! ,bureau ( ,consum]     
,f9ancial ,protection4  7ii7 ,compliance
 sy/em ,prior to e/abli%+ a facility "u 
?is subsection1 ! ,secret>y1 or any     
adm9i/rator designat$ by ! ,secret>y to 
e/abli% a program to c>ry out ! au?ority
 provid$ 9 ?is subsection1 %all e/abli% 
a compliance sy/em 9 consultation ) !   
,bureau ( ,consum] ,f9ancial            
,protection4  7#b7 ,no net co/ to       
,gov]nm5t ,me*anisms e/abli%$ "u ?is    
subsection %all n result 9 any net co/  
to ! ,f$]al ,gov]nm5t1 z det]m9$ jo9tly 
by ! ,secret>y1 ! ,secret>y (           
,education1 & ! ,director ( ! ,(fice (  
,managem5t & ,budget4  7b7 ,f$]al       

,regi/] notice ,prior to ex]cis+ any    
au?ority provid$ "u subsection 7a71 !   
,secret>y %all publi% a notice 9 !      
,f$]al ,regi/] to seek comm5t f int]e/$ 
p>ties on its propos$ ex]cise ( su*     
au?ority1 includ+--  7#a7 ! t]ms &      
conditions gov]n+ ! l5d+1 pur*ases1 or  
o!r cr$it facilities au?oriz$ by        
subsection 7a72  7#b7 an outl9e (       
me?odology & factors consid]$ 9 !       
pur*ase or re/ructur+ ( private         
education loans2  7#c7 private education
 loan modification options t may be     
available = exi/+ loans2  7#d7 h[ !y w  
ensure t borr[]s ^: education debt      
s]vice obligations repres5t a           
disproportionate %>e ( _! income w be   
provid$ relief2 &  7#e7 h[ ! use ( !    
me?odology & factors1 z propos$ 9 !     
notice1 w be us$ to ensure t any ex]cise
 ( au?ority by ! ,secret>y w result 9 no
 net co/ to ! ,f$]al ,gov]nm5t4  7c7    
,initial report ,n lat] ?an #ij days    
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y %all submit to ! appropriate  

committees ( ,congress a report t       
includes--  7#a7 a plan ( ! ,secret>y to
 implem5t cr$it me*anisms "u ! au?ority 
( ?is ,act2  7#b7 a description (       
macroeconomic b5efits ( increas$        
effici5cy & ref9ance activity 9 ! /ud5t 
loan m>ket2 &  7#c7 a description ( !   
b5efits ?r\gh ! use ( su* au?ority to   
private education loan borr[]s1 includ+ 
h[ any incid5tal net ga9 f ! cr$it      
me*anism w\ld be us$ to b5efit /ud5t    
borr[]s4  7d7 ,annual reports ,beg9n+ #a
 ye> aft] ! date ( ! fir/ use ( !       
au?ority provid$ "u ?is section1 !      
,secret>y %all provide an annual report 
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs ( ! ,s5ate & !          
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives describ+ !      
utilization1 impact1 & f9ancial p]=mance
 ( any program e/abli%$ "u ! au?ority ( 
?is section4  7e7 ,public aw>5ess ,n    
lat] ?an #fj days aft] ! date (         
publication ( a notice 9 ! ,f$]al       
,regi/] pursuant to subsection 7b71 !   

,secret>y1 9 consultation ) ! ,secret>y 
( ,education & ! ,director ( ! ,bureau (
 ,consum] ,f9ancial ,protection1 %all   
beg9 a national aw>5ess campaign to al]t
 all private education loan borr[]s :o  
may b5efit f any program or facilities  
e/abli%$ "u ?is section4 ,su* campaign  
%all include outrea* to t>get$          
populations ( borr[]s t are mo/ likely  
to h private education loan debt s]vice 
obligations t repres5t a                
disproportionate %>e ( _! income4  7f7  
,expiration ( au?ority ,?ree ye>s aft] !
 date on :i* a cr$it facility is        
e/abli%$ "u ?is ,act1 & n lat] ?an #e   
ye>s aft] ! date ( enactm5t ( ?is ,act1 
any new l5d+1 pur*ase1 or o!r activity  
initiat$ ?r\gh ! facilities e/abli%$ by 
! ,secret>y "u subsection 7a7 %all      
cease4  #e4 ,s5se ( ,congress ,x is !   
s5se ( ,congress t ! ,f$]al f9ancial    
in/itutions1 su* z ! ,f$]al ,f9anc+     
,bank & ! ,f$]al ,res]ve banks1 &       
f$]ally *>t]$ private entities1 su* z ! 
,f$]al home loan banks1 %\ld consid]1 9 

consultation ) ! ,secret>y & ! ,secret>y
 ( ,education1 us+ available au?orities 
9 a timely mann]1 if ne$$1 to assi/ 9   
ensur+ t borr[]s ( private education    
loans c secure cr$it accommodations to  
ref9ance exi/+ loans1 9 a mann] t       
results 9 no increas$ co/s to taxpay]s4