,,ii #aadth ,,congress #ast ,session ,s4 #bjii ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bi1 #bjae,ms4 ,ayotte 7for herself and ,mrs4 ,capito7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to provide for the establishment of a mechanism to allow borrowers of ,federal student loans to refinance their loans1 to amend the ,internal ,revenue ,code of #aihf to extend the exclusion for employer-provided educational assistance to employer payment of interest on certain refinanced student loans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,loan ,relief ,act of #bjae4 #b4 ,purpose ,the purpose of this ,act is to spur economic growth1 by establishing a mechanism to allow borrowers of ,federal student loans to refinance their loans in order-- 7#a7 to allow credit-worthy borrowers to get a lower interest rate than the ,federal rate2 7#b7 to encourage innovation in the education refinancing markets2 and 7#c7 to promote the participation of private capital in the education refinancing markets4 ,i ,refinancing student loans #aja4 ,definitions ,in this title-- 7#a7 the term ,federal student loan means a loan made1 insured1 or guaranteed under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq472 and 7#b7 the term ,secretary means the ,secretary of the ,treasury1 other than in the context of the ,secretary of ,education4 #ajb4 ,temporary authority to create a credit facility to increase market efficiency in the student loan market 7a7 ,authority 7#a7 ,in general ,the ,secretary1 notwithstanding any provision of section #dhd of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia71 is authorized to facilitate ,federal student loan refinancing into the private market to ensure that borrowers pay lower interest rates that are commensurate with credit risk1 so that they may pursue more economically productive activities1 such as home purchases and small business formation4 7#b7 ,no net cost to ,government ,mechanisms established under this subsection shall not result in any net cost to the ,federal ,government1 as determined jointly by the ,secretary1 the ,secretary of ,education1 and the ,director of the ,office of ,management and ,budget4 7#c7 ,federal guarantee ,a private loan that results from refinancing under a program established under the authority of this section shall receive a ,federal ,government guarantee of #ie percent of the private loan1 including accrued interest on such loan4 7#d7 ,disclosures ,each lender of prospective borrower of a private loan that would result from refinancing under a program established under the authority of this section shall disclose to the prospective borrower the information described in section #dbh;,c7b77#a77;,f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgh-c7;b77#a77;,f774 7b7 ,public awareness ,the ,secretary1 in consultation with the ,secretary of ,education1 shall-- 7#a7 begin a national awareness campaign to alert all ,federal student loan borrowers who may benefit from any program or facilities established under this section2 and 7#b7 include in the campaign under paragraph 7#a7 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 forgiveness4 7c7 ,expiration of authority ,three years after the date on which a credit facility is established under this ,act1 and not later than #e years after the date of enactment of this ,act1 any new lending1 purchase1 or other activity initiated through the facilities established by the ,secretary under subsection 7a7 shall cease1 except the ,federal guarantee described in subsection 7a77#c7 shall continue for the life of the private loan4 ,,ii ,exclusion for employer payment of interest on certain refinanced student loans #bja4 ,exclusion for employer payment of interest on certain refinanced student loans 7a7 ,in general ,paragraph 7#a7 of section #abg7;c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,a71 by redesignating subparagraph 7,b7 as subparagraph 7,c71 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 the payment by an employer1 whether paid to the employee or to a lender1 of any indebtedness of the employee under a qualified education refinance loan or any interest relating to such a loan1 and 4 7b7 ,qualified education refinance loan ,subsection 7c7 of section #abg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#h7 ,qualified education refinance loan ,the term qualified education refinance loan means any indebtedness used solely to refinance a qualified education loan 7within the meaning of section #bba7;d77#a77 with respect to which the lender offers the borrower protection in the event of unemployment or financial hardship 7as reasonably determined by the lender1 including periods of forbearance or career assistance74 4 7c7 ,conforming amendment2 denial of double benefit ,paragraph 7#a7 of section #bba7;e7 of the ,internal ,revenue ,code of #aihf is amended by inserting before the period the following3 1 or for which an exclusion is allowable under section #abg to the taxpayer's employer by reason of the payment by such employer of any indebtedness on a qualified education loan of the taxpayer4 7d7 ,effective date ,the amendments made by this section shall apply to expenses paid after ,december #ca1 #bjae4