text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Refinancing Education Funding to 
  Invest (REFI) for the Future Act of 2013''.
  
  SEC. 2. FINDINGS AND PURPOSE.
  
      (a) Findings.--Congress finds that--
              (1) there is approximately $1,100,000,000,000 of 
          outstanding student loan debt in the United States, including 
          more than $150,000,000,000 in private education loans;
              (2) as of 2008, 81 percent of individuals graduating with 
          an undergraduate degree with more than $40,000 in student loans 
          had a private education loan;
              (3) the limited number of lenders in the private education 
          loan marketplace reduce the ability of borrowers with private 
          education loans to restructure, refinance, or negotiate 
          repayment terms for their current loans, leading to excessive 
          debt burdens and potential default; and
              (4) excessive student indebtedness reduces economic 
          activity, threatens homeownership, hurts small business growth, 
          and limits opportunities for economic expansion in rural 
          communities.
      (b) Purpose.--The purpose of this Act is to spur economic growth, 
  by establishing a mechanism to allow borrowers of private education 
  loans to refinance their loans in order--
              (1) to facilitate greater competition in the private 
          education lending and refinancing markets;
              (2) to address inefficiencies in the private education 
          lending and refinancing markets;
              (3) to encourage innovation in the private education 
          refinancing markets; and
              (4) to promote the participation of private capital in the 
          private education refinancing markets.
  
  SEC. 3. DEFINITIONS.
  
      In this Act--
              (1) the term ``private education loan'' has the same 
          meaning as in section 140(a) of the Truth in Lending Act (15 
          U.S.C. 1650(a)); and
              (2) the term ``Secretary'' means the Secretary of the 
          Treasury, other than in the context of the Secretary of 
          Education.
  
  SEC. 4. TEMPORARY AUTHORITY TO CREATE A CREDIT FACILITY TO INCREASE 
                MARKET EFFICIENCY IN THE STUDENT LOAN MARKET.
  
      (a) Authority.--
              (1) In general.--
                      (A) Credit facilities authorization.--Upon a 
                  determination by the Secretary that borrowers are 
                  unable to secure adequate credit accommodations with 
                  existing private education loans, the Secretary, 
                  notwithstanding any provision of section 484 of the 
                  Higher Education Act of 1965 (20 U.S.C. 1091), is 
                  authorized to establish lending, purchase, and other 
                  credit facilities to--
                              (i) accommodate reasonable refinancing 
                          opportunities or other loan adjustments that--
                                      (I) improve the sustainability of 
                                  payments for the borrower; and
                                      (II) reduce the likelihood of 
                                  delinquency and default on private 
                                  education loans;
                              (ii) benefit borrowers that are most likely 
                          to have private student debt service 
                          obligations that represent a disproportionate 
                          share of their income; and
                              (iii) ensure that borrowers pay lower 
                          interest rates that are commensurate with 
                          credit risk, so that they may pursue more 
                          economically productive activities, such as 
                          home purchases and small business formation.
                      (B) Consultation.--
                              (i) In general.--Any determination under 
                          subparagraph (A) shall be made jointly with the 
                          Secretary of Education and the Director of the 
                          Bureau of Consumer Financial Protection.
                              (ii) Compliance system.--Prior to 
                          establishing a facility under this subsection, 
                          the Secretary, or any administrator designated 
                          by the Secretary to establish a program to 
                          carry out the authority provided in this 
                          subsection, shall establish a compliance system 
                          in consultation with the Bureau of Consumer 
                          Financial Protection.
              (2) No net cost to government.--Mechanisms established 
          under this subsection shall not result in any net cost to the 
          Federal Government, as determined jointly by the Secretary, the 
          Secretary of Education, and the Director of the Office of 
          Management and Budget.
      (b) Federal Register Notice.--Prior to exercising any authority 
  provided under subsection (a), the Secretary shall publish a notice in 
  the Federal Register to seek comment from interested parties on its 
  proposed exercise of such authority, including--
              (1) the terms and conditions governing the lending, 
          purchases, or other credit facilities authorized by subsection 
          (a);
              (2) an outline of methodology and factors considered in the 
          purchase or restructuring of private education loans;
              (3) private education loan modification options that may be 
          available for existing loans;
              (4) how they will ensure that borrowers whose education 
          debt service obligations represent a disproportionate share of 
          their income will be provided relief; and
              (5) how the use of the methodology and factors, as proposed 
          in the notice, will be used to ensure that any exercise of 
          authority by the Secretary will result in no net cost to the 
          Federal Government.
      (c) Initial Report.--Not later than 90 days after the date of 
  enactment of this Act, the Secretary shall submit to the appropriate 
  committees of Congress a report that includes--
              (1) a plan of the Secretary to implement credit mechanisms 
          under the authority of this Act;
              (2) a description of macroeconomic benefits of increased 
          efficiency and refinance activity in the student loan market; 
          and
              (3) a description of the benefits through the use of such 
          authority to private education loan borrowers, including how 
          any incidental net gain from the credit mechanism would be used 
          to benefit student borrowers.
      (d) Annual Reports.--Beginning 1 year after the date of the first 
  use of the authority provided under this section, the Secretary shall 
  provide an annual report to the Committee on Banking, Housing, and 
  Urban Affairs of the Senate and the Committee on Financial Services of 
  the House of Representatives describing the utilization, impact, and 
  financial performance of any program established under the authority of 
  this section.
      (e) Public Awareness.--Not later than 60 days after the date of 
  publication of a notice in the Federal Register pursuant to subsection 
  (b), the Secretary, in consultation with the Secretary of Education and 
  the Director of the Bureau of Consumer Financial Protection, shall 
  begin a national awareness campaign to alert all private education loan 
  borrowers who may benefit from any program or facilities established 
  under this section. Such campaign shall include outreach to targeted 
  populations of borrowers that are most likely to have private education 
  loan debt service obligations that represent a disproportionate share 
  of their income.
      (f) Expiration of Authority.--Three years after the date on which a 
  credit facility is established under this Act, and not later than 5 
  years after the date of enactment of this Act, any new lending, 
  purchase, or other activity initiated through the facilities 
  established by the Secretary under subsection (a) shall cease.
  
  SEC. 5. SENSE OF CONGRESS.
  
      It is the sense of Congress that the Federal financial 
  institutions, such as the Federal Financing Bank and the Federal 
  Reserve banks, and federally chartered private entities, such as the 
  Federal home loan banks, should consider, in consultation with the 
  Secretary and the Secretary of Education, using available authorities 
  in a timely manner, if needed, to assist in ensuring that borrowers of 
  private education loans can secure credit accommodations to refinance 
  existing loans, in a manner that results in no increased costs to 
  taxpayers.
target: Refinancing Education Funding to Invest (REFI) for the Future Act of 2013 - Directs the Secretary of the Treasury, upon determining that borrowers are unable to secure adequate credit accommodations with existing private education loans, to establish credit facilities to: (1) accommodate reasonable loan adjustments that reduce the likelihood that borrowers become delinquent or default on their loans, (2) benefit borrowers that are most likely to have private student debt service obligations that represent a disproportionate share of their income, and (3) ensure that borrowers pay lower interest rates that are commensurate with credit risk so that they can pursue more economically productive activities. Requires the decision that borrowers are unable to secure adequate credit accommodations to be made by the Secretary jointly with the Secretary of Education and the Bureau of Consumer Financial Protection (CFPB). Prohibits the establishment of such credit mechanisms from resulting in any net cost to the federal government. Directs the Secretary of the Treasury to conduct a national awareness campaign to alert all private education loan borrowers who may benefit from those credit facilities or programs. Terminates any activities initiated through such a credit facility three years after such facility is established or not later than five years after this Act's enactment. Expresses the sense of the Congress that federal financial institutions and federally chartered private entities should consider the timely use of their available authorities to assist borrowers of private education loans in refinancing such loans in a manner that results in no increased costs to taxpayers.  
feat_title: Refinancing Education Funding to Invest (REFI) for the Future Act of 2013