Student Loan Opportunity Act of 2017

Student Loan Opportunity Act of 2017

This bill amends the Internal Revenue Code, with respect to tax-exempt private activity bond financing, to: (1) eliminate a provision that restricts nonprofit scholarship funding corporations that acquire student loan notes to notes incurred under the Higher Education Act of 1965 (thus allowing such corporations to access tax-exempt financing for other types of student loans), and (2) expand the operations of such corporations to include performing student assistance related activities.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 480 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 480

     To amend the Internal Revenue Code of 1986 to allow qualified 
  scholarship funding corporations to access tax-exempt financing for 
                   alternative private student loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2017

  Mr. Flores introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to allow qualified 
  scholarship funding corporations to access tax-exempt financing for 
                   alternative private student loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Opportunity Act of 
2017''.

SEC. 2. QUALIFIED SCHOLARSHIP FUNDING CORPORATION TAX-EXEMPT FINANCING 
              FOR ALTERNATIVE PRIVATE STUDENT LOANS.

    (a) In General.--Section 150(d)(2)(A) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``established and'',
            (2) by striking ``incurred under the Higher Education Act 
        of 1965'', and
            (3) by inserting ``and performing student assistance 
        related activities'' after ``student loan notes''.
    (b) Student Assistance Related Activities.--Section 150(d) of such 
Code is amended by adding at the end the following new paragraph:
            ``(4) Student assistance related activities.--For purposes 
        of this subsection, the term `student assistance related 
        activities' includes maintaining loan documentation, handling 
        communications with schools and borrowers, monitoring the 
        student borrower's location and continued enrollment, default 
        prevention, offering borrower education and college access 
        programs, borrower outreach and financial literacy training, 
        disseminating information about student loan programs and 
        higher education finance matters, and similar charitable and 
        educational activities.''.
    (c) Requalification as Qualified Scholarship Funding Corporation.--
Section 150(d) of such Code, as amended by subsection (b), is amended 
by adding at the end the following new paragraph:
            ``(5) Requalification as qualified scholarship funding 
        corporation.--A corporation that meets the requirements of 
        subparagraphs (A) and (B) of section 150(d)(2) shall not fail 
        to be treated as a qualified scholarship funding corporation 
        solely because such corporation ceased to be a corporation 
        described in section 150(d)(2) after the date of the enactment 
        of the Health Care and Education Reconciliation Act of 2010.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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