,,ii  #aad? ,,congress  #a/ ,session    
,s4 #bjii  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bi1         
#bjae,ms4 ,ayotte 7= h]self & ,mrs4     
,capito7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to provide = !     
e/abli%m5t ( a me*anism to all[ borr[]s 
( ,f$]al /ud5t loans to ref9ance _!     
loans1 to am5d ! ,int]nal ,rev5ue ,code 
( #aihf to ext5d ! exclusion =          
employ]-provid$ educational assi/ance to
 employ] paym5t ( int]e/ on c]ta9       
ref9anc$ /ud5t loans1 & = o!r purposes4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,/ud5t ,loan ,relief ,act ( #bjae4    
#b4 ,purpose ,! purpose ( ?is ,act is to
 spur economic gr[?1 by e/abli%+ a      
me*anism to all[ borr[]s ( ,f$]al /ud5t 
loans to ref9ance _! loans 9 ord]--     
7#a7 to all[ cr$it-wor?y borr[]s to get 
a l[] int]e/ rate ?an ! ,f$]al rate2    
7#b7 to enc\rage innovation 9 !         
education ref9anc+ m>kets2 &  7#c7 to   
promote ! p>ticipation ( private capital

 9 ! education ref9anc+ m>kets4  ,i     
,ref9anc+ /ud5t loans  #aja4 ,def9itions
 ,9 ?is title-- 7#a7 ! t]m ,f$]al /ud5t 
loan means a loan made1 insur$1 or      
gu>ante$ "u title ,,iv ( ! ,high]       
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgj et seq472 &  7#b7 ! t]m ,secret>y 
means ! ,secret>y ( ! ,treasury1 o!r ?an
 9 ! context ( ! ,secret>y ( ,education4
  #ajb4 ,tempor>y au?ority to create a  
cr$it facility to increase m>ket        
effici5cy 9 ! /ud5t loan m>ket  7a7     
,au?ority  7#a7 ,9 g5]al ,! ,secret>y1  
not)/&+ any provision ( section #dhd ( !
 ,high] ,education ,act ( #aife 7#bj    
,u4,s4,c4 #ajia71 is au?oriz$ to        
facilitate ,f$]al /ud5t loan ref9anc+   
into ! private m>ket to ensure t borr[]s
 pay l[] int]e/ rates t are comm5surate 
) cr$it risk1 s t !y may pursue m       
economically productive activities1 su* 
z home pur*ases & small bus9ess =mation4
  7#b7 ,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  7#c7 ,f$]al gu>antee ,a       
private loan t results f ref9anc+ "u a  
program e/abli%$ "u ! au?ority ( ?is    
section %all receive a ,f$]al ,gov]nm5t 
gu>antee ( #ie p]c5t ( ! private loan1  
includ+ accru$ int]e/ on su* loan4  7#d7
 ,disclosures ,ea* l5d] ( prospective   
borr[] ( a private loan t w\ld result f 
ref9anc+ "u a program e/abli%$ "u !     
au?ority ( ?is section %all disclose to 
! prospective borr[] ! in=mation        
describ$ 9 section #dbh;,c7b77#a77;,f7 (
 ! ,high] ,education ,act ( #aife 7#bj  
,u4,s4,c4 #ajgh-c7;b77#a77;,f774  7b7   
,public aw>5ess ,! ,secret>y1 9         
consultation ) ! ,secret>y ( ,education1
 %all--  7#a7 beg9 a national aw>5ess   
campaign to al]t all ,f$]al /ud5t loan  
borr[]s :o may b5efit f any program or  
facilities e/abli%$ "u ?is section2 &   
7#b7 include 9 ! campaign "u p>agraph   
7#a7 a disclosure t a private loan t    

results f ref9anc+ "u a program e/abli%$
 "u ! au?ority ( ?is section is n       
eligible = income driv5 repaym5t or loan
 =giv5ess4  7c7 ,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 cease1 except ! ,f$]al gu>antee
 describ$ 9 subsection 7a77#c7 %all     
cont9ue = ! life ( ! private loan4  ,,ii
 ,exclusion = employ] paym5t ( int]e/ on
 c]ta9 ref9anc$ /ud5t loans  #bja4      
,exclusion = employ] paym5t ( int]e/ on 
c]ta9 ref9anc$ /ud5t loans  7a7 ,9 g5]al
 ,p>agraph 7#a7 ( section #abg7;c7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( subp>agraph 7,a71 
by r$esignat+ subp>agraph 7,b7 z        
subp>agraph 7,c71 & by ins]t+ aft]      
subp>agraph 7,a7 ! foll[+ new           
subp>agraph3  7,b7 ! paym5t by an       
employ]1 :e!r paid to ! employee or to a

 l5d]1 ( any indebt$ness ( ! employee "u
 a qualifi$ education ref9ance loan or  
any int]e/ relat+ to su* a loan1 &  4   
7b7 ,qualifi$ education ref9ance loan   
,subsection 7c7 ( section #abg ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#h7 ,qualifi$ education ref9ance loan  
,! t]m qualifi$ education ref9ance loan 
means any indebt$ness us$ solely to     
ref9ance a qualifi$ education loan 7)9 !
 mean+ ( section #bba7;d77#a77 ) respect
 to :i* ! l5d] (f]s ! borr[] protection 
9 ! ev5t ( unemploym5t or f9ancial      
h>d%ip 7z reasonably det]m9$ by ! l5d]1 
includ+ p]iods ( =be>ance or c>e]       
assi/ance74  4  7c7 ,con=m+ am5dm5t2    
d5ial ( d\ble b5efit ,p>agraph 7#a7 (   
section #bba7;e7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by ins]t+ be=e ! 
p]iod ! foll[+3 1 or = :i* an exclusion 
is all[able "u section #abg to !        
taxpay]'s employ] by reason ( ! paym5t  
by su* employ] ( any indebt$ness on a   
qualifi$ education loan ( ! taxpay]4    

7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to exp5ses paid  
aft] ,decemb] #ca1 #bjae4