Student Borrower Fairness Act

“(12) Borrower modification of interest rate

“(A) Modification—Notwithstanding the preceding paragraphs of this subsection, the borrower of a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan may elect to modify the interest rate of the loan to be equal to the interest rate that would be applicable to such loan if such loan were first disbursed (or in the case of a Federal Direct Consolidation Loan, first applied for) on the date on which such borrower elects to modify the interest rate of such loan.

“(B) Fixed rate—Except as provided in subparagraph (C), an interest rate elected under subparagraph (A) for a loan shall be fixed for the life of the loan.

“(C) Continuing authority to modify—A borrower may elect to modify the interest rate of a loan in accordance with subparagraph (A) at any time during the life of the loan.

“(D) Construction—Nothing in this paragraph shall be construed to authorize any refunding of any repayment of a loan.”

“(e) Tax rate of publicly traded corporations based on compensation ratio

“(1) In general—In the case of a publicly traded corporation (as defined in section 162(m)(2)), the amount of tax under subsection (b) shall be determined—

“(A) by adjusting the highest rate of tax applicable to the taxpayer by the percentage point adjustment specified in paragraph (2), and

“(B) by making proper adjustments to—

“(i) the dollar amount in clause (ii) of the second sentence of paragraph (1), and

“(ii) the dollar amount in clause (ii) of the third sentence of paragraph (1).

“(2) Adjustment of tax rate—For purposes of paragraph (1), the percentage points specified in this paragraph shall be determined as follows:

“(3) Definitions—For purposes of this subsection—

“(A) Compensation ratio—The compensation ratio for a taxable year means a ratio—

“(i) the numerator of which is the amount equal to the greater of the compensation of the chief operating officer or the highest paid employee of the taxpayer for the calendar year preceding the beginning of the taxable year, and

“(ii) the denominator of which is the amount equal to the median compensation of all employees employed by the taxpayer in the United States for the calendar year preceding the beginning of the taxable year.

“(B) Compensation

“(i) Employees—In the case of employees of the taxpayer other than the chief operating officer or the highest paid employee, the term compensation means wages (as defined in section 3121(a)) paid by the taxpayer during a calendar year.

“(ii) CEO and highest paid employee—In the case of the chief operating officer and the highest paid employee of the taxpayer, the term compensation means total compensation for the calendar year, as reported in the Summary Compensation Table reported to the Securities and Exchange Commission pursuant to Item 402 of Regulation S–K of the Securities and Exchange Commission.

“(4) Special rule if contracted or foreign employee ratio increases

“(A) In general—If—

“(i) the total number of full-time employees, determined on an annual full-time equivalent basis, employed by the taxpayer in the United States for a taxable year is reduced by more than 10 percent, as compared to the total number of full-time employees, determined on an annual full-time equivalent basis, employed by the taxpayer in the United States for the preceding taxable year, and

“(ii) the total number of contracted employees or foreign full-time employees, determined on an annual full-time equivalent basis, of the taxpayer for that taxable year has increased, as compared with the total number of contracted employees or foreign full-time employees, determined on an annual full-time equivalent basis, of the taxpayer for the preceding taxable year,

“(B) Definitions—For purposes of this paragraph—

“(i) Annual full-time equivalent—The term annual full-time equivalent means—

“(I) in the case of a full-time employee paid hourly qualified wages, the total number of hours worked for the taxpayer by the employee, not to exceed 2,000 hours per employee, divided by 2,000, and

“(II) in the case of a salaried full-time employee, the total number of weeks worked for the taxpayer by the employee divided by 52.

“(ii) Contracted full-time employee—The term contracted full-time employee means an individual engaged by the taxpayer to provide a specific set of services established pursuant to the terms and conditions of a written employment contract that delineates the length of employment, the salary and bonuses (if any) to be paid, and the benefits that accrue to that individual.

“(iii) Foreign full-time employee—The term foreign full-time employee means a full-time employee of the taxpayer that is employed at a location other than the United States.

“(iv) Full-time employee—The term full-time employee means an employee of the taxpayer that either—

“(I) is paid compensation by the taxpayer for services of not less than an average of 35 hours per week, or

“(II) is a salaried employee of the taxpayer and is paid compensation during the taxable year for full-time employment.

“(5) Controlled groups—For purposes of this subsection, all persons treated as a single employer under subsection (b), (c), (m) or (o) of section 414, shall be treated as one person.

“(6) Reports—The taxpayer shall furnish such reports to the Secretary with respect to compensation and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner as may be required by the Secretary.

“(7) Regulations—The Secretary shall prescribe such regulations and other guidance as may be necessary or appropriate to carry out this subsection, including any guidelines regarding the determination of wages, average compensation, and compensation ratio.”