72(t)(7). . (b) 403 (b) plans Paragraph (11) of section 403(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following: Under rules similar to the rules of section 401(k)(14)(C), a distribution shall be treated as made upon hardship of the employee to the extent that the aggregate amount of such distributions during the taxable year does not exceed the lesser of the amount paid by the taxpayer for qualified higher education expenses during such taxable year, or $5,250. . (c) 457 plans Paragraph (1) of section 457(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following: Under rules similar to the rules of section 401(k)(14)(C) (and without regard to whether the expenses are unforeseen), a distribution shall be treated as made by reason of unforeseen emergency to the extent that the aggregate amount of such distributions during the taxable year does not exceed the lesser of the amount paid by the taxpayer for qualified higher education expenses during such taxable year, or $5,250. . (d) Effective date The amendment made by this section shall apply to distributions made after the date of the enactment of this Act. 4. Penalty-free withdrawals from IRAs for student loan expenses of taxpayers, spouses, children, and grandchildren (a) In general Paragraph (7) of section 72(t) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (C) Student loans Such term shall include amounts paid in repayment of any loan made to an individual described in subparagraph (A) to assist the individual in attending an educational organization described in section 170(b)(1)(A)(ii). . (b) Effective date The amendment made by this section shall apply to distributions made after the date of the enactment of this Act. 5. Exclusion of distributions for educational expenses (a) In general Section 402 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (m) Distributions for qualified higher