,,ii #aacth ,,congress #b;d ,session ,s4 #bbib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #f1 #bjad,ms4 ,warren 7for herself1 ,mrs4 ,boxer1 ,mrs4 ,murray1 ,mr4 ,durbin1 ,mr4 ,reed1 ,ms4 ,landrieu1 ,ms4 ,stabenow1 ,mr4 ,brown1 ,mr4 ,whitehouse1 ,mr4 ,udall of ,colorado1 ,mr4 ,udall of ,new ,mexico1 ,mrs4 ,shaheen1 ,mr4 ,merkley1 ,mr4 ,begich1 ,mrs4 ,gillibrand1 ,mr4 ,franken1 ,mr4 ,blumenthal1 ,mr4 ,schatz1 ,ms4 ,baldwin1 ,mr4 ,murphy1 ,ms4 ,hirono1 ,ms4 ,heitkamp1 ,mr4 ,markey1 ,mr4 ,booker1 ,mr4 ,sanders1 ,mr4 ,leahy1 and ,mr4 ,heinrich7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,higher ,education ,act of #aife to provide for the refinancing of certain ,federal student loans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,bank on ,students ,emergency ,loan ,refinancing ,act4 #b4 ,refinancing programs 7a7 ,program authority ,section #dea7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a7a77 is amended-- 7#a7 by striking and 7#b7 and inserting 7#b72 and 7#b7 by inserting 2 and 7#c7 to make loans under section #dfj;,a and section #dfj;,b after section #dei;,a4 7b7 ,refinancing ,program ,part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfj;,a4 ,refinancing ,,ffel and ,federal ,direct ,loans 7a7 ,in general ,beginning not later than #ahj days after the date of enactment of the ,bank on ,students ,emergency ,loan ,refinancing ,act1 the ,secretary shall establish a program under which the ,secretary1 upon the receipt of an application from a qualified borrower1 reissues the borrower's original loan under this part or part ,b as a loan under this part1 in accordance with the provisions of this section1 in order to permit the borrower to obtain the interest rate provided under subsection 7c74 7b7 ,reissuing ,loans 7#a7 ,federal ,direct ,loans ,upon application of a qualified borrower1 the ,secretary shall reissue a ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,direct ,,plus ,loan1 or a ,federal ,direct ,consolidation ,loan of the qualified borrower1 for which the first disbursement was made1 or the application for the consolidation loan was received before ,july #a1 #bjac1 in an amount equal to the sum of-- 7,a7 the unpaid principal1 accrued unpaid interest1 and late charges of the original loan2 and 7,b7 the administrative fee under subsection 7d77#c74 7#b7 ,discharging and reissuing ,,ffel program loans as refinanced ,federal ,direct ,loans ,upon application of a qualified borrower for any loan that was made1 insured1 or guaranteed under part ,b and for which the first disbursement was made1 or the application for the consolidation loan was received1 before ,july #a1 #bjaj1 the ,secretary shall reissue such loan as a loan under this part1 in an amount equal to the sum of the unpaid principal1 accrued unpaid interest1 and late charges of the original loan and the administrative fee under subsection 7d77#c71 to the borrower in accordance with the following3 7,a7 ,the ,secretary shall pay the proceeds of such reissued loan to the eligible lender of the loan made1 insured1 or guaranteed under part ,b1 in order to discharge the borrower from any remaining obligation to the lender with respect to the original loan4 7,b7 ,the ,secretary shall reissue-- 7i7 a loan originally made1 insured1 or guaranteed under section #dbh as a ,federal ,direct ,stafford ,loan2 7ii7 a loan originally made1 insured1 or guaranteed under section #dbh;,b as a ,federal ,direct ,,plus ,loan2 7iii7 a loan originally made1 insured1 or guaranteed under section #dbh;,h as a ,federal ,direct ,unsubsidized ,stafford ,loan2 and 7iv7 a loan originally made1 insured1 or guaranteed under section #dbh;,c as a ,federal ,direct ,consolidation ,loan4 7,c7 ,the interest rate for each loan reissued under this paragraph shall be the rate provided under subsection 7c74 7c7 ,interest rates 7#a7 ,in general ,the interest rate for the reissued ,federal ,direct ,stafford ,loans1 ,federal ,direct ,unsubsidized ,stafford ,loans1 ,federal ,direct ,,plus ,loans1 and ,federal ,direct ,consolidation ,loans1 shall be a rate equal to-- 7,a7 in any case where the original loan was a loan under section #dbh or #dbh;,h1 a ,federal ,direct ,stafford loan1 or a ,federal ,direct ,unsubsidized ,stafford ,loan1 that was issued to an undergraduate student1 a rate equal to the rate for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans issued to undergraduate students for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad2 7,b7 in any case where the original loan was a loan under section #dbh or #dbh;,h1 a ,federal ,direct ,stafford ,loan1 or a ,federal ,direct ,unsubsidized ,stafford ,loan1 that was issued to a graduate or professional student1 a rate equal to the rate for ,federal ,direct ,unsubsidized ,stafford ,loans issued to graduate or professional students for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad2 7,c7 in any case where the original loan was a loan under section #dbh;,b or a ,federal ,direct ,,plus ,loan1 a rate equal to the rate for ,federal ,direct ,,plus ,loans for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad2 and 7,d7 in any case where the original loan was a loan under section #dbh;,c or a ,federal ,direct ,consolidation ,loan1 a rate equal to the rate for ,federal ,direct ,,plus ,loans for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad4 7#b7 ,fixed ,rate ,the applicable rate of interest determined under paragraph 7#a7 for a reissued loan under this section shall be fixed for the period of the loan4 7d7 ,terms and conditions of loans 7#a7 ,in general ,a loan that is reissued under this section shall have the same terms and conditions as the original loan1 except as otherwise provided in this section4 7#b7 ,no automatic extension of repayment period ,reissuing a loan under this section shall not result in the extension of the duration of the repayment period of the loan1 and the borrower shall retain the same repayment term that was in effect on the original loan4 ,nothing in this paragraph shall be construed to prevent a borrower from electing a different repayment plan at any time in accordance with section #dee7;d77#c74 7#c7 ,administrative fee ,the ,secretary shall charge the borrower of a loan reissued under this section an administrative fee of not more than #j4e percent of the sum of the unpaid principal1 and accrued unpaid interest and late charges1 of the original loan4 7e7 ,definition of qualified borrower 7#a7 ,in ,general ,for purposes of this section1 the term qualified borrower means a borrower-- 7,a7 of a loan under this part or part ,b for which the first disbursement was made1 or the application for a consolidation loan was received1 before ,july #a1 #bjac2 and 7,b7 who meets the eligibility requirements based on income or debt-to-income ratio established by the ,secretary4 7#b7 ,income requirements ,not later than #ahj days after the date of enactment of the ,bank on ,students ,emergency ,loan ,refinancing ,act1 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 financial need4 7f7 ,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 #d of the ,bank on ,students ,emergency ,loan ,refinancing ,act4 #dfj;,b4 ,federal ,direct ,refinanced ,private ,loan program 7a7 ,definitions ,in this section3 7#a7 ,eligible private education loan ,the term eligible private education loan means a private education loan1 as defined in section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej71 that-- 7,a7 was disbursed to the borrower before ,july #a1 #bjac2 and 7,b7 was for the borrower's own postsecondary educational expenses for an eligible program at an institution of higher education participating in the loan program under this part1 as of the date that the loan was disbursed4 7#b7 ,federal ,direct ,refinanced ,private ,loan ,the term ,federal ,direct ,refinanced ,private ,loan means a loan issued under subsection 7b77#a74 7#c7 ,private educational lender ,the term private educational lender has the meaning given the term in section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej74 7#d7 ,qualified borrower ,the term qualified borrower means an individual who-- 7,a7 has an eligible private education loan2 7,b7 has been current on payments on the eligible private education loan for the #f months prior to the date of the qualified borrower's application for refinancing under this section1 and is in good standing on the loan at the time of such application2 7,c7 is not in default on the eligible private education loan or on any loan made1 insured1 or guaranteed under this part or part ,b or ,e2 and 7,d7 meets the eligibility requirements based on income or debt-to-income ratio established by the ,secretary under subsection 7b77#b74 7b7 ,program authorized 7#a7 ,in general ,the ,secretary1 in consultation with the ,secretary of the ,treasury1 shall carry out a program under which the ,secretary1 upon application by a qualified borrower who has an eligible private education loan1 shall issue such borrower a loan under this part in accordance with the following3 7,a7 ,the loan issued under this program shall be in an amount equal to the sum of the unpaid principal1 accrued unpaid interest1 and late charges of the private education loan and the origination fee under subsection 7f74 7,b7 ,the ,secretary shall pay the proceeds of the loan issued under this program to the private educational lender of the private education loan1 in order to discharge the qualified borrower from any remaining obligation to the lender with respect to the original loan4 7,c7 ,the ,secretary shall require that the qualified borrower undergo loan counseling that provides all of the information and counseling required under clauses 7i7 through 7viii7 of section #dhe7;b77#a77;,a7 before the loan is reissued in accordance with this section1 and before the proceeds of such loan are paid to the private educational lender4 7,d7 ,the ,secretary shall issue the loan as a ,federal ,direct ,refinanced ,private ,loan1 which shall have the same terms1 conditions1 and benefits as a ,federal ,direct ,unsubsidized ,stafford ,loan1 except as otherwise provided in this section4 7#b7 ,income requirements ,not later than #ahj days after the date of enactment of the ,bank on ,students ,emergency ,loan ,refinancing ,act1 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 financial need4 7c7 ,interest rate 7#a7 ,in general ,the interest rate for a ,federal ,direct ,refinanced ,private ,loan is-- 7,a7 in the case of a ,federal ,direct ,refinanced ,private ,loan for a private education loan originally issued for undergraduate postsecondary educational expenses1 a rate equal to the rate for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans issued to undergraduate students for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad2 and 7,b7 in the case of a ,federal ,direct ,refinanced ,private ,loan for a private education loan originally issued for graduate or professional degree postsecondary educational expenses1 a rate equal to the rate for ,federal ,direct ,unsubsidized ,stafford ,loans issued to graduate or professional students for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad4 7#b7 ,combined undergraduate and graduate study loans ,if a ,federal ,direct ,refinanced ,private ,loan is for a private educational loan originally issued for both undergraduate and graduate or professional postsecondary educational expenses1 the interest rate shall be a rate equal to the rate for ,federal ,direct ,,plus ,loans for the #ab-month period beginning on ,july #a1 #bjac1 and ending on ,june #cj1 #bjad4 7#c7 ,fixed ,rate ,the applicable rate of interest determined under this subsection for a ,federal ,direct ,refinanced ,private ,loan shall be fixed for the period of the loan4 7d7 ,no inclusion in aggregate limits ,the amount of a ,federal ,direct ,refinanced ,private ,loan1 or a ,federal ,direct ,consolidated ,loan to the extent such loan was used to repay a ,federal ,direct ,refinanced ,private ,loan1 shall not be included in calculating a borrower's annual or aggregate loan limits under section #dbh or #dbh;,h4 7e7 ,no eligibility for service-,related repayment ,notwithstanding sections #dbh,k7a77#b77;,a71 #dbh,l7b77#b71 #dee7m77#c77;,a71 and #dfj7;b71 a ,federal ,direct ,refinanced ,private ,loan1 or any ,federal ,direct ,consolidation ,loan to the extent such loan was used to repay a ,federal ,direct ,refinanced ,private ,loan1 shall not be eligible for any loan repayment or loan forgiveness program under section #dbh,k1 #dbh,l1 or #dfj or for the repayment plan for public service employees under section #dee7m74 7f7 ,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 issued4 7g7 ,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 #d of the ,bank on ,students ,emergency ,loan ,refinancing ,act4 4 7c7 ,amendments to public service repayment plan provisions ,section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is amended-- 7#a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,special rules for section #dfj;,a loans 7,a7 ,refinanced ,federal ,direct loans ,notwithstanding paragraph 7#a71 in determining the number of monthly payments that meet the requirements of such paragraph for an eligible ,federal ,direct ,loan reissued under section #dfj;,a that was originally a loan under this part1 the ,secretary shall include all monthly payments made on the original loan that meet the requirements of such paragraph4 7,b7 ,refinanced ,,ffel loans ,in the case of an eligible ,federal ,direct ,loan reissued under section #dfj;,a that was originally a loan under part ,b1 only monthly payments made after the date on which the loan was reissued may be included for purposes of paragraph 7#a74 2 and 7#c7 in paragraph 7#d77;,a7 7as redesignated by paragraph 7#a771 by inserting 7including any ,federal ,direct ,stafford ,loan1 ,federal ,direct ,,plus ,loan1 ,federal ,direct ,unsubsidized ,stafford ,loan1 or ,federal ,direct ,consolidation ,loan reissued under section #dfj;,a7 before the period at the end4 7d7 ,income-,based repayment ,section #dic;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended by adding at the end the following3 7f7 ,special rule for refinanced loans 7#a7 ,refinanced ,federal ,direct and ,,ffel loans ,in calculating the period of time during which a borrower of a loan that is reissued under section #dfj;,a has made monthly payments for purposes of subsection 7b77#g71 the ,secretary shall deem the period to include all monthly payments made for the original loan1 and all monthly payments made for the reissued loan1 that otherwise meet the requirements of this section4 7#b7 ,federal ,direct ,refinanced ,private ,loans ,in calculating the period of time during which a borrower of a ,federal ,direct ,refinanced ,private ,loan under section #dfj;,b has made monthly payments for purposes of subsection 7b77#g71 the ,secretary shall include only payments-- 7,a7 that are made after the date of the issuance of the ,federal ,direct ,refinanced ,private ,loan2 and 7,b7 that otherwise meet the requirements of this section4 4 #c4 ,fair share tax on high-income taxpayers 7a7 ,in general ,subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new part3 ,,vii ,fair share tax on high-income taxpayers ,sec4 #ei;,b4 ,fair share tax4 #ei;,b4 ,fair share tax 7a7 ,general rule 7#a7 ,phase-in of tax ,in the case of any high-income taxpayer1 there is hereby imposed for a taxable year 7in addition to any other tax imposed by this subtitle7 a tax equal to the product of-- 7,a7 the amount determined under paragraph 7#b71 and 7,b7 a fraction 7not to exceed #a7-- 7i7 the numerator of which is the excess of-- 7,i7 the taxpayer's adjusted gross income1 over 7,,ii7 the dollar amount in effect under subsection 7c77#a71 and 7ii7 the denominator of which is the dollar amount in effect under subsection 7c77#a74 7#b7 ,amount of tax ,the amount of tax determined under this paragraph is an amount equal to the excess 7if any7 of-- 7,a7 the tentative fair share tax for the taxable year1 over 7,b7 the excess of-- 7i7 the sum of-- 7,i7 the regular tax liability 7as defined in section #bf7;b77 for the taxable year1 7,,ii7 the tax imposed by section #ee for the taxable year1 plus 7,,iii7 the payroll tax for the taxable year1 over 7ii7 the credits allowable under part ,,iv of subchapter ,a 7other than sections #bg7;a71 #ca1 and #cd74 7b7 ,tentative fair share tax ,for purposes of this section-- 7#a7 ,in general ,the tentative fair share tax for the taxable year is #cj percent of the excess of-- 7,a7 the adjusted gross income of the taxpayer1 over 7,b7 the modified charitable contribution deduction for the taxable year4 7#b7 ,modified charitable contribution deduction ,for purposes of paragraph 7#a7-- 7,a7 ,in general ,the modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section #agj 7section #fdb7;c7 in the case of a trust or estate7 for such taxable year as-- 7i7 the amount of itemized deductions allowable under the regular tax 7as defined in section #ee7 for such taxable year1 determined after the application of section #fh1 bears to 7ii7 such amount1 determined before the application of section #fh4 7,b7 ,taxpayer must itemize ,in the case of any individual who does not elect to itemize deductions for the taxable year1 the modified charitable contribution deduction shall be zero4 7c7 ,high-,income taxpayer ,for purposes of this section-- 7#a7 ,in general ,the term high-income taxpayer means1 with respect to any taxable year1 any taxpayer 7other than a corporation7 with an adjusted gross income for such taxable year in excess of #a1jjj1jjj 7#ej percent of such amount in the case of a married individual who files a separate return74 7#b7 ,inflation adjustment 7,a7 ,in general ,in the case of a taxable year beginning after #bjae1 the #a1jjj1jjj amount under paragraph 7#a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #aj1jjj1 such amount shall be rounded to the next lowest multiple of #aj1jjj4 7d7 ,payroll tax ,for purposes of this section1 the payroll tax for any taxable year is an amount equal to the excess of-- 7#a7 the taxes imposed on the taxpayer under sections #adja1 #adaa1 #caja1 #cbja1 and #cbaa7;a7 7to the extent such taxes are attributable to the rate of tax in effect under section #caja7 with respect to such taxable year or wages or compensation received during the taxable year1 over 7#b7 the deduction allowable under section #afd7;f7 for such taxable year4 7e7 ,special rule for estates and trusts ,for purposes of this section1 in the case of an estate or trust1 adjusted gross income shall be computed in the manner described in section #fg7;e74 7f7 ,not treated as tax imposed by this chapter for certain purposes ,the tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter 7other than the credit allowed under section #bg7;a77 or for purposes of section #ee4 4 7b7 ,conforming amendment ,section #bf7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subparagraphs 7,c7 through 7,x7 as subparagraphs 7,d7 through 7,y71 respectively1 and by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 section #ei;,b 7relating to fair share tax71 4 7c7 ,clerical amendment ,the table of parts for subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,part ,,vii--,fair share tax on high-,income taxpayers 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 #d4 ,deficit ,neutral ,implementation of ,student ,loan ,refinancing ,programs 7a7 ,amount of revenue ,the ,secretary of ,education shall estimate the amount that is equal to the amount of the net increase in revenue received in the ,treasury during the #aj-year period beginning on the date of enactment of the ,bank on ,students ,emergency ,loan ,refinancing ,act attributable to the amendments made by section #c of the ,bank on ,students ,emergency ,loan ,refinancing ,act4 7b7 ,deficit-,neutral ,termination of the ,refinancing ,program ,the ,secretary of ,education shall terminate the refinancing programs carried out under sections #dfj;,a and #dfj;,b of the ,higher ,education ,act of #aife on the date that the net cost of carrying out such refinancing programs is equal to the amount of additional revenue estimated under subsection 7a74 7c7 ,methodology ,when estimating cost and revenue under this section1 the ,secretary shall utilize the accounting methods and assumptions that are used by the ,congressional ,budget ,office1 as of the date of enactment of this ,act1 to make such estimations4