I 

116TH CONGRESS 

1ST SESSION H. R. 5294 

To amend the Truth in Lending Act to establish a postsecondary education 

loan borrower bill of rights and to require certain creditors to obtain 

private loan certifications from institutions of higher education, to amend 

the Fair Credit Reporting Act to require the Bureau of Consumer Financial Protection to issue rules to establish standards for reporting information related to student loans to consumer reporting agencies, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 4, 2019 

Ms. ADAMS introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committee on Education 

and Labor, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Truth in Lending Act to establish a postsecondary education loan borrower bill of rights and to 

require certain creditors to obtain private loan certifications from institutions of higher education, to amend 

the Fair Credit Reporting Act to require the Bureau 

of Consumer Financial Protection to issue rules to establish standards for reporting information related to student loans to consumer reporting agencies, and for other 

purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Student Borrower Pro5 tections Act of 2019’’. 

6 SEC. 2. POSTSECONDARY EDUCATION LOAN BORROWER 

7 BILL OF RIGHTS. 

8 Chapter 2 of the Truth in Lending Act (15 U.S.C. 

9 1631 et seq.) is amended— 

10 (1) by redesignating section 140A as section 

11 140B; 

12 (2) by inserting after section 140 the following: 

13 ‘‘§ 140A. Postsecondary education loan borrower bill 

14 of rights 

15 ‘‘(a) DEFINITIONS.—In this paragraph: 

16 ‘‘(1) BORROWER.—The term ‘borrower’ means 

17 the person to whom a postsecondary education loan 

18 is extended. 

19 ‘‘(2) CHARGE OFF.—The term ‘charge off’ 

20 means charge to profit and loss, or subject to any 

21 similar action. 

22 ‘‘(3) COVERED LENDER, SERVICER, OR AS23 SIGNEE.—The term ‘covered lender, servicer, or as24 signee’ means— 


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1 ‘‘(A) an eligible lender (as defined under 

2 section 435 of the Higher Education Act of 

3 1965) of a loan made, insured, or guaranteed 

4 under part B of title IV of the Higher Edu5 cation Act of 1965; 

6 ‘‘(B) any entity with which the Secretary 

7 of Education enters into a contract under sec8 tion 456 of the Higher Education Act of 1965 

9 for origination, servicing, or collection described 

10 in subsection (b) of such section 456 and is en11 gaged in the provision of, or offering, servicing, 

12 or collections regardless of whether the Sec13 retary identifies the entity as a ‘servicer’ in 

14 such contract; 

15 ‘‘(C) a private educational lender (as de16 fined under section 140(a)); 

17 ‘‘(D) any other person or entity engaged in 

18 the business of securing, making, or extending 

19 postsecondary education loans on behalf of a 

20 person or entity described in subparagraph (A) 

21 or (C); or 

22 ‘‘(E) any other holder of a postsecondary 

23 education loan other than the Secretary of Edu24 cation. 


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1 ‘‘(4) POSTSECONDARY EDUCATION LOAN.—The 

2 term ‘postsecondary education loan’ means— 

3 ‘‘(A) a private education loan (as defined 

4 under section 140(a)); or 

5 ‘‘(B) a loan made, insured, or guaranteed 

6 under title IV of the Higher Education Act of 

7 1965. 

8 ‘‘(5) QUALIFIED WRITTEN REQUEST.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 written request’ means a written correspond11 ence of a borrower (other than notice on a pay12 ment medium supplied by the postsecondary 

13 educational lender or servicer) transmitted by 

14 mail, facsimile, or electronically through an 

15 email address or website designated by the cov16 ered lender, servicer, or assignee to receive com17 munications from borrowers that— 

18 ‘‘(i) includes, or otherwise enables the 

19 covered lender, servicer, or assignee to 

20 identify, the name and account of the bor21 rower; and 

22 ‘‘(ii) includes, to the extent applica23 ble— 


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1 ‘‘(I) sufficient detail regarding 

2 the information sought by the bor3 rower; or 

4 ‘‘(II) a statement of the reasons 

5 for the belief of the borrower that 

6 there is an error regarding the ac7 count of the borrower. 

8 ‘‘(B) CORRESPONDENCE DELIVERED TO

9 OTHER ADDRESSES.— 

10 ‘‘(i) IN GENERAL.—A written cor11 respondence of a borrower is a qualified 

12 written request if the written correspond13 ence is transmitted to and received by a 

14 covered lender, servicer, or assignee at a 

15 mailing address, facsimile number, email 

16 address, or website address other than the 

17 address or number designated by that cov18 ered lender, servicer, or assignee r to re19 ceive communications from borrowers but 

20 the written correspondence meets the re21 quirements under clauses (i) and (ii) of 

22 subparagraph (A). 

23 ‘‘(ii) DUTY TO TRANSFER.—A covered 

24 lender, servicer, or assignee shall, within a 

25 reasonable period of time, transfer a writVerDate Sep 11 2014 21:09 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5294.IH H5294

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1 ten correspondence of a borrower received 

2 by the covered lender, servicer, or assignee 

3 at a mailing address, facsimile number, 

4 email address, or website address other 

5 than the address or number designated by 

6 that covered lender, servicer, or assignee to 

7 receive communications from borrowers to 

8 the correct address or appropriate office or 

9 other unit of the covered lender, servicer, 

10 or assignee. 

11 ‘‘(iii) DATE OF RECEIPT.—A written 

12 correspondence of a borrower transferred 

13 in accordance with clause (i) shall be 

14 deemed to be received by the covered lend15 er, servicer, or assignee on the date on 

16 which the written correspondence is trans17 ferred to the correct address or appro18 priate office or other unit of the covered 

19 lender, servicer, or assignee. 

20 ‘‘(6) SERVICING.—The term ‘servicing’ means 

21 one or more of the following: 

22 ‘‘(A) Receiving any scheduled periodic pay23 ments from a borrower or notification of such 

24 payments pursuant to the terms of a postsecVerDate Sep 11 2014 21:09 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5294.IH H5294

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1 ondary education loan or contract governing the 

2 servicing. 

3 ‘‘(B) Applying payments to the borrower’s 

4 account pursuant to the terms of the postsec5 ondary education loan or the contract governing 

6 the servicing. 

7 ‘‘(C) Maintaining account records for a 

8 postsecondary education loan. 

9 ‘‘(D) Communicating with a borrower re10 garding a postsecondary education loan on be11 half of the covered lender, servicer, or assignee. 

12 ‘‘(E) Interactions with a borrower, includ13 ing activities to help prevent default on obliga14 tions arising from postsecondary education 

15 loans, conducted to facilitate the activities de16 scribed in subparagraph (A) or (B). 

17 ‘‘(b) SALE, TRANSFER, OR ASSIGNMENT.—If the 

18 sale, other transfer, assignment, or transfer of servicing 

19 obligations of a postsecondary education loan results in 

20 a change in the identity of the party to whom the borrower 

21 must send subsequent payments or direct any communica22 tions concerning the loan— 

23 ‘‘(1) the transferor shall— 

24 ‘‘(A) notify the borrower, in writing, in 

25 simple and understandable terms, not fewer 


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1 than 45 days before transferring a legally en2 forceable right to receive payment from the bor3 rower on such loan, of— 

4 ‘‘(i) the sale or other transfer, assign5 ment, or transfer of servicing obligations; 

6 ‘‘(ii) the identity of the transferee; 

7 ‘‘(iii) the name, address, and email 

8 address of the party to whom subsequent 

9 payments or communications must be sent; 

10 ‘‘(iv) the telephone numbers and 

11 websites of both the transferor and the 

12 transferee; 

13 ‘‘(v) the effective date of the sale, 

14 transfer, or assignment; 

15 ‘‘(vi) the date on which the transferor 

16 will stop accepting payment; and 

17 ‘‘(vii) the date on which the transferee 

18 will begin accepting payment; 

19 ‘‘(B) forward any payment from a bor20 rower with respect to such postsecondary edu21 cation loan to the transferee, immediately upon 

22 receiving such payment, during the 60-day pe23 riod beginning on the date on which the trans24 feror stops accepting payment of such postsec25 ondary education loan; 


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1 ‘‘(C) provide to the transferee all borrower 

2 information and complete payment history in3 formation for any such postsecondary education 

4 loans; and 

5 ‘‘(2) the transferee shall— 

6 ‘‘(A) notify the borrower, in writing, in 

7 simple and understandable terms, not fewer 

8 than 45 days before acquiring a legally enforce9 able right to receive payment from the borrower 

10 on such loan, of— 

11 ‘‘(i) the sale or other transfer, assign12 ment, or transfer of servicing obligations; 

13 ‘‘(ii) the identity of the transferor; 

14 ‘‘(iii) the name, address, and email 

15 address of the party to whom subsequent 

16 payments or communications must be sent; 

17 ‘‘(iv) the telephone numbers and 

18 websites of both the transferor and the 

19 transferee; 

20 ‘‘(v) the effective date of the sale, 

21 transfer, assignment, or transfer of serv22 icing obligations; 

23 ‘‘(vi) the date on which the transferor 

24 will stop accepting payment; and 


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1 ‘‘(vii) the date on which the transferee 

2 will begin accepting payment; 

3 ‘‘(B) accept as on-time and may not im4 pose any late fee or finance charge for any pay5 ment from a borrower with respect to such 

6 postsecondary education loan that is forwarded 

7 from the transferor during the 90-day period 

8 beginning on the date on which the transferor 

9 stops accepting payment, if the transferor re10 ceives such payment on or before the applicable 

11 due date, including any grace period; 

12 ‘‘(C) provide borrowers a simple, online 

13 process for transferring existing electronic fund 

14 transfer authority; and 

15 ‘‘(D) honor any promotion or benefit avail16 able or granted to the borrower or advertised by 

17 the previous owner or transferor of such post18 secondary education loan. 

19 ‘‘(c) MATERIAL CHANGE IN MAILING ADDRESS OR

20 PROCEDURE FOR HANDLING PAYMENTS.— 

21 ‘‘(1) IN GENERAL.—If a covered lender, 

22 servicer, or assignee makes a change in the mailing 

23 address, office, or procedures for handling payments 

24 with respect to any postsecondary education loan, 

25 the covered lender, servicer, or assignee shall clearly 


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1 and conspicuously notify the borrower in writing and 

2 through the borrower’s preferred or designated 

3 method of communication not less than 45 calendar 

4 days in advance of such change. 

5 ‘‘(2) BORROWER PROTECTION WINDOW.—If a 

6 change described in paragraph (1) causes a delay in 

7 the crediting of the account of the borrower made 

8 during the 90-day period following the date on which 

9 such change took effect, the covered lender, servicer, 

10 or assignee may not impose on the borrower any 

11 negative consequences, including negative credit re12 porting, lost eligibility in borrower benefits, late fees, 

13 interest capitalization, or other financial injury. 

14 ‘‘(3) LOAN FORGIVENESS PROGRAMS.—For pur15 poses of any public or private loan forgiveness pro16 gram that applies to a postsecondary education loan, 

17 such program shall not be tolled during the 90-day 

18 period following the date on which a change de19 scribed under paragraph (1) takes effect. 

20 ‘‘(d) INTEREST RATE AND TERM CHANGES FOR CER21 TAIN POSTSECONDARY EDUCATION LOANS.— 

22 ‘‘(1) NOTIFICATION REQUIREMENTS.— 

23 ‘‘(A) IN GENERAL.—Except as provided in 

24 paragraph (3), a covered lender, servicer, or as25 signee shall provide written notice to a borrower 


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1 of any material change in the terms of the post2 secondary education loan, including an increase 

3 in the interest rate, not later than 45 days be4 fore the effective date of the change or increase. 

5 ‘‘(B) MATERIAL CHANGES IN TERMS.—The 

6 Bureau shall, by regulation, establish guidelines 

7 for determining which changes in terms are ma8 terial under subparagraph (A). 

9 ‘‘(2) LIMITS ON INTEREST RATE AND FEE IN10 CREASES APPLICABLE TO OUTSTANDING BAL11 ANCE.—Except as provided in paragraph (3), a cov12 ered lender, servicer, or assignee may not increase 

13 the interest rate or other fee applicable to an out14 standing balance on a postsecondary education loan. 

15 ‘‘(3) EXCEPTIONS.—The requirements under 

16 paragraphs (1) and (2) shall not apply to— 

17 ‘‘(A) an increase based on an applicable 

18 variable interest rate incorporated in the terms 

19 of a postsecondary education loan that provides 

20 for changes in the interest rate according to op21 eration of an index that is not under the control 

22 of the covered lender, servicer, or assignee and 

23 is published for viewing by the general public; 

24 ‘‘(B) an increase in interest rate due to the 

25 completion of a workout or temporary hardship 


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1 arrangement by the borrower or the failure of 

2 the borrower to comply with the terms of a 

3 workout or temporary hardship arrangement 

4 if— 

5 ‘‘(i) the interest rate applicable to a 

6 category of transactions following any such 

7 increase does not exceed the rate or fee 

8 that applied to that category of trans9 actions prior to commencement of the 

10 workout or temporary hardship arrange11 ment; and 

12 ‘‘(ii) the covered lender, servicer, or 

13 assignee has provided the borrower, prior 

14 to the commencement of such arrange15 ment, with clear and conspicuous disclo16 sure of the terms of the workout or tem17 porary hardship arrangement (including 

18 any increases due to such completion or 

19 failure); and 

20 ‘‘(C) an increase in interest rate due to a 

21 provision included within the terms of a post22 secondary education loan that provides for a 

23 lower interest rate based on the borrower’s 

24 agreement to a prearranged plan that author25 izes recurring electronic funds transfers if— 


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1 ‘‘(i) the borrower withdraws the bor2 rower’s authorization of the prearranged 

3 recurring electronic funds transfer plan; 

4 and 

5 ‘‘(ii) after withdrawal of the bor6 rower’s authorization and prior to increas7 ing the interest rate, the covered lender, 

8 servicer, or assignee has provided the bor9 rower with clear and conspicuous disclo10 sure of the impending change in borrower’s 

11 interest rate and a reasonable opportunity 

12 to reauthorize the prearranged electronic 

13 funds transfers plan. 

14 ‘‘(e) PAYMENT INFORMATION.— 

15 ‘‘(1) STATEMENT REQUIRED WITH EACH BILL16 ING CYCLE.—A covered lender, servicer, or assignee 

17 for each borrower’s account that is being serviced by 

18 the covered lender, servicer, or assignee and that in19 cludes a postsecondary education loan shall transmit 

20 to the borrower, for each billing cycle during which 

21 there is an outstanding balance in that account, a 

22 billing statement that includes— 

23 ‘‘(A) the interest rate, principal balance, 

24 minimum monthly payment, and payment due 

25 date for each loan; 


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1 ‘‘(B) the outstanding balance in the ac2 count and each loan at the beginning of the bill3 ing cycle; 

4 ‘‘(C) the total amount credited to the ac5 count and each loan during the billing cycle; 

6 ‘‘(D) the total amount of unpaid interest 

7 for the account and each loan; 

8 ‘‘(E) the amount of any fee added to the 

9 account during the billing cycle, itemized to 

10 show each individual fee amount and reason for 

11 each fee; 

12 ‘‘(F) the address, email address, and 

13 phone number of the covered lender, servicer, or 

14 assignee to which the borrower may direct bill15 ing inquiries; 

16 ‘‘(G) the amount of any payments or other 

17 credits during the billing cycle that was applied 

18 respectively to the principal and to interest for 

19 each loan; 

20 ‘‘(H) the manner, pursuant to subsection 

21 (g), in which payments will be allocated among 

22 multiple loans if the borrower does not provide 

23 specific payment instructions; 

24 ‘‘(I) whether each loan is in deferment or 

25 forbearance; 


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1 ‘‘(J) information on how to file a com2 plaint with the Bureau and with the ombuds3 man designated pursuant to section 1035 of the 

4 Consumer Financial Protection Act of 2010 

5 and the Department of Education; 

6 ‘‘(K) for any borrower considered to be at 

7 risk, as described in subsection (j)(1), a state8 ment that a repayment specialist office or unit 

9 designated under subsection (j) is available to 

10 answer inquiries related to alternative repay11 ment options, including the toll-free telephone 

12 number to contact the specialist pursuant to 

13 subsection (j)(3); and 

14 ‘‘(L) any other information determined ap15 propriate by rule of the Bureau. 

16 ‘‘(2) DISCLOSURE OF PAYMENT DEADLINES.— 

17 In the case of a postsecondary education loan ac18 count under which a late fee or charge may be im19 posed due to the failure of the borrower to make 

20 payment on or before the due date for such pay21 ment, the billing statement required under para22 graph (1) with respect to the account shall include, 

23 in a conspicuous location on the billing statement, 

24 the date on which the payment is due or, if dif25 ferent, the date on which a late fee will be charged, 


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1 together with the amount of the late fee to be im2 posed if payment is made after that date. 

3 ‘‘(f) APPLICATION OF PAYMENTS.— 

4 ‘‘(1) APPLY PAYMENT ON DATE RECEIVED.— 

5 Unless otherwise directed by the borrower, a covered 

6 lender, servicer, or assignee shall apply payments to 

7 a borrower’s account on the date the payment is re8 ceived. 

9 ‘‘(2) PROMULGATION OF RULES.—The Bureau 

10 may issue rules for the application of postsecondary 

11 education loan payments that— 

12 ‘‘(A) implements the requirements in this 

13 section; 

14 ‘‘(B) minimizes the amount of fees and in15 terest incurred by the borrower and the total 

16 loan amount paid by the borrower; 

17 ‘‘(C) minimizes delinquencies, assignments 

18 to collection, and charge offs; 

19 ‘‘(D) requires covered lender, servicer, or 

20 assignee to apply payments on the date re21 ceived; and 

22 ‘‘(E) allows the borrower to instruct the 

23 covered lender, servicer, or assignee to apply 

24 payments in a manner preferred by the bor25 rower. 


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1 ‘‘(3) METHOD THAT BEST BENEFITS BOR2 ROWER.—In promulgating the rules under para3 graph (2), the Bureau shall choose the allocation 

4 method that best benefits the borrower and is com5 patible with existing repayment options. 

6 ‘‘(g) ALLOCATION OF PAYMENTS AMONG MULTIPLE

7 LOANS.— 

8 ‘‘(1) ALLOCATION OF UNDERPAYMENTS.—Un9 less otherwise directed by the borrower, upon receipt 

10 of a payment that does not satisfy the full amount 

11 due for each postsecondary education loan, the cov12 ered lender, servicer, or assignee shall allocate 

13 amounts in a manner that minimizes negative con14 sequences, including negative credit reporting and 

15 late fees, and, where multiple loans share an equal 

16 stage of delinquency, the covered lender, servicer, or 

17 assignee shall first allocate payment to the postsec18 ondary education loan with the smallest monthly 

19 payment, and then, after satisfying that monthly 

20 payment, to each successive loan bearing the next 

21 highest monthly payment, until the payment is ex22 hausted. A borrower may instruct or expressly au23 thorize a covered lender, servicer, or assignee to allo24 cate payments in a different manner. 


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1 ‘‘(2) ALLOCATION OF EXCESS AMOUNTS.—Un2 less otherwise directed by the borrower, upon receipt 

3 of a payment exceeding the total amount due among 

4 all the borrower’s postsecondary education loans, the 

5 covered lender, servicer, or assignee shall satisfy the 

6 amounts due for each loan, and then allocate 

7 amounts in excess of the minimum payment amount 

8 first to the postsecondary education loan balance 

9 bearing the highest annual percentage rate, and 

10 then, once that loan is repaid, to each successive 

11 postsecondary education loan bearing the next high12 est annual percentage rate, until the payment is ex13 hausted. A borrower may instruct or expressly au14 thorize a covered lender, servicer, or assignee to allo15 cate such excess payments in a different manner. 

16 ‘‘(3) ALLOCATION OF EXACT PAYMENTS.—Un17 less otherwise directed by the borrower upon receipt 

18 of a payment that exactly satisfies the monthly pay19 ments for each loan, the covered lender, servicer, or 

20 assignee shall allocate payments to satisfy each 

21 monthly payment. 

22 ‘‘(4) PROMULGATION OF RULES.—The Bureau 

23 may issue rules for the allocation of payments 

24 among multiple postsecondary education loans that 

25 comply with the requirements of subsection (f)(2). 


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1 ‘‘(5) METHOD THAT BEST BENEFITS BOR2 ROWER.—In promulgating the rules under para3 graph (4), the Director shall choose the allocation 

4 method that best benefits the borrower and is com5 patible with existing repayment options. 

6 ‘‘(h) LATE FEES.— 

7 ‘‘(1) IN GENERAL.—A late fee may not be 

8 charged to a borrower for a postsecondary education 

9 loan under any of the following circumstances, either 

10 individually or in combination: 

11 ‘‘(A) On a per-loan basis when a borrower 

12 has multiple postsecondary education loans. 

13 ‘‘(B) In an amount greater than 4 percent 

14 of the amount of the payment past due. 

15 ‘‘(C) Before the end of the 15-day period 

16 beginning on the date the payment is due. 

17 ‘‘(D) More than once with respect to a sin18 gle late payment. 

19 ‘‘(E) The borrower fails to make a sin20 gular, non-successive regularly scheduled pay21 ment on the postsecondary education loan. 

22 ‘‘(2) COORDINATION WITH SUBSEQUENT LATE

23 FEES.—No late fee may be charged to a borrower 

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1 fore the due date of the payment, or within any ap2 plicable grace period for the payment, if the insuffi3 ciency is attributable only to a late fee relating to 

4 an earlier payment, and the payment is otherwise a 

5 full payment for the applicable period. 

6 ‘‘(3) PAYMENTS AT LOCAL BRANCHES.—If the 

7 loan holder, in the case of a postsecondary education 

8 loan account, is a financial institution that main9 tains a branch or office at which payments on any 

10 such account are accepted from the borrower in per11 son, the date on which the borrower makes a pay12 ment on the account at such branch or office shall 

13 be considered to be the date on which the payment 

14 is made for purposes of determining whether a late 

15 fee may be imposed due to the failure of the bor16 rower to make payment on or before the due date 

17 for such payment. 

18 ‘‘(i) BORROWER INQUIRIES.— 

19 ‘‘(1) DUTY OF COVERED LENDER, SERVICER, 

20 OR ASSIGNEE TO RESPOND TO BORROWER INQUIR21 IES.— 

22 ‘‘(A) NOTICE OF RECEIPT OF REQUEST.— 

23 If a borrower submits a qualified written re24 quest to the covered lender, servicer, or as25 signee for information relating to the servicing 


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1 of the postsecondary education loan, the cov2 ered lender, servicer, or assignee shall provide a 

3 written response acknowledging receipt of the 

4 qualified written request within 5 business days 

5 unless any action requested by the borrower is 

6 taken within such period. 

7 ‘‘(B) ACTION WITH RESPECT TO IN8 QUIRY.—Not later than 30 business days after 

9 the receipt from a borrower of a qualified writ10 ten request under subparagraph (A) and, if ap11 plicable, before taking any action with respect 

12 to the qualified written request of the borrower, 

13 the covered lender, servicer, or assignee shall— 

14 ‘‘(i) make appropriate corrections in 

15 the account of the borrower, including the 

16 crediting of any late fees, and transmit to 

17 the borrower a written notification of such 

18 correction (which shall include the name 

19 and toll-free or collect-call telephone num20 ber of a representative of the covered lend21 er, servicer, or assignee who can provide 

22 assistance to the borrower); 

23 ‘‘(ii) after conducting an investigation, 

24 provide the borrower with a written expla25 nation or clarification that includes— 


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1 ‘‘(I) to the extent applicable, a 

2 statement of the reasons for which the 

3 covered lender, servicer, or assignee 

4 believes the account of the borrower is 

5 correct as determined by the covered 

6 lender, servicer, or assignee; and 

7 ‘‘(II) the name and toll-free or 

8 collect-call telephone number of an in9 dividual employed by, or the office or 

10 department of, the covered lender, 

11 servicer, or assignee who can provide 

12 assistance to the borrower; or 

13 ‘‘(iii) after conducting an investiga14 tion, provide the borrower with a written 

15 explanation or clarification that includes— 

16 ‘‘(I) information requested by the 

17 borrower or explanation of why the in18 formation requested is unavailable or 

19 cannot be obtained by the covered 

20 lender, servicer, or assignee; and 

21 ‘‘(II) the name and toll-free or 

22 collect-call telephone number of an in23 dividual employed by, or the office or 

24 department of, the covered lender, 


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1 servicer, or assignee who can provide 

2 assistance to the borrower. 

3 ‘‘(C) LIMITED EXTENSION OF RESPONSE

4 TIME.— 

5 ‘‘(i) IN GENERAL.—There may be 1 

6 extension of the 30-day period described in 

7 subparagraph (B) of not more than 15 

8 days if, before the end of such 30-day pe9 riod, the covered lender, servicer, or as10 signee notifies the borrower of the exten11 sion and the reasons for the delay in re12 sponding. 

13 ‘‘(ii) REPORTS TO BUREAU.—Each 

14 covered lender, servicer, or assignee shall, 

15 on an annual basis, report to the Bureau 

16 the aggregate number of extensions sought 

17 by the such covered lender, servicer, or as18 signee under clause (i). 

19 ‘‘(2) PROTECTION AGAINST NEGATIVE CON20 SEQUENCES.—During the 60-day period beginning 

21 on the date on which a covered lender, servicer, or 

22 assignee receives a qualified written request from a 

23 borrower relating to a dispute regarding payments 

24 by the borrower, a covered lender, servicer, or as25 signee may not impose any negative consequences on 


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1 the borrower relating to the subject of the qualified 

2 written request or to such period including— 

3 ‘‘(A) providing negative credit information 

4 to any consumer reporting agency (as defined 

5 in section 603 of the Fair Credit Reporting 

6 Act); 

7 ‘‘(B) lost eligibility for a borrower benefit; 

8 ‘‘(C) late fees; 

9 ‘‘(D) interest capitalization; or 

10 ‘‘(E) other financial injury. 

11 ‘‘(j) REPAYMENT SPECIALISTS FOR AT-RISK BOR12 ROWERS.— 

13 ‘‘(1) AT-RISK BORROWERS.—A covered lender, 

14 servicer, or assignee shall designate an office or 

15 other unit to act as a repayment specialist regarding 

16 postsecondary education loans for— 

17 ‘‘(A) any borrower who— 

18 ‘‘(i) becomes 30 calendar days or 

19 more delinquent under the postsecondary 

20 education loan; or 

21 ‘‘(ii) notifies the covered lender, 

22 servicer, or assignee that the borrower is 

23 having difficulty making payment; 

24 ‘‘(B) any borrower who requests informa25 tion related to options to reduce or suspend the 


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1 borrower’s monthly payment, or otherwise indi2 cates that the borrower is experiencing or is 

3 about to experience financial hardship or dis4 tress; 

5 ‘‘(C) any borrower who has not completed 

6 the program of study for which the borrower re7 ceived the loans; 

8 ‘‘(D) any borrower who is enrolled in dis9 cretionary forbearance for more than nine of 

10 the previous 12 months; 

11 ‘‘(E) any borrower who has rehabilitated 

12 or consolidated one or more postsecondary edu13 cation loans out of default within the prior 24 

14 months; 

15 ‘‘(F) a borrower who seeks information re16 garding, seeks to enter an agreement for, or 

17 seeks to resolve an issue under a repayment op18 tion that requires subsequent submission of 

19 supporting documentation; 

20 ‘‘(G) a borrower who seeks to modify the 

21 terms of the repayment of the postsecondary 

22 education loan because of hardship; and 

23 ‘‘(H) any borrower or segment of bor24 rowers determined by the Bureau, in consultaVerDate Sep 11 2014 21:09 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H5294.IH H5294

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1 tion with the Secretary of Education, to be at 

2 risk. 

3 ‘‘(2) TRAINING.—Staff of the repayment spe4 cialist office or unit designated under paragraph (1) 

5 shall— 

6 ‘‘(A) receive rigorous, ongoing training re7 lated to available repayment plans, loan forgive8 ness, and cancellation and discharge options; 

9 and 

10 ‘‘(B) be trained to— 

11 ‘‘(i) assess the borrower’s long-term 

12 and short-term financial situation in dis13 cussing alternative repayment options with 

14 borrowers; 

15 ‘‘(ii) inform borrowers, when there is 

16 sufficient information to determine that a 

17 borrower may be eligible, about closed18 school discharge, discharge under defense 

19 to repayment, or total and permanent dis20 ability discharge prior to informing the 

21 borrower about any other options for re22 payment; and 

23 ‘‘(iii) inform borrowers about alter24 native repayment options, prior to dis25 cussing forbearance and deferment. 


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1 ‘‘(3) TOLL-FREE TELEPHONE NUMBER.—Each 

2 covered lender, servicer, or assignee shall maintain a 

3 toll-free telephone number that shall— 

4 ‘‘(A) connect directly to the repayment 

5 specialist office or unit designated under para6 graph (1); 

7 ‘‘(B) be made available on the primary 

8 internet website of the covered lender, servicer, 

9 or assignee, on monthly billing statements, and 

10 any required disclosures; and 

11 ‘‘(C) not subject borrowers to unreasonable 

12 call wait times. 

13 ‘‘(4) COMPENSATION.—Staff of the repayment 

14 specialist office or unit designated under paragraph 

15 (1) shall not be compensated on the basis of the vol16 ume of calls or accounts handled, dollar amounts 

17 collected, brevity of calls, or in any other manner 

18 that may encourage undue haste and lack of dili19 gence or quality customer service. 

20 ‘‘(k) ACTIONS WHEN BORROWER IS HAVING DIF21 FICULTY MAKING PAYMENT OR IS 60 DAYS DELIN22 QUENT.— 

23 ‘‘(1) IN GENERAL.—Not more than 5 days after 

24 a borrower notifies a covered lender, servicer, or as25 signee that the borrower is having difficulty making 


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•HR 5294 IH

1 payment or a borrower becomes 60 days delinquent 

2 on a postsecondary education loan, the repayment 

3 specialist office or unit designated under subsection 

4 (j) shall— 

5 ‘‘(A) complete a full review of the bor6 rower’s postsecondary education loan and make 

7 a reasonable effort to obtain the information 

8 necessary to determine— 

9 ‘‘(i) if the borrower is eligible for an 

10 alternative repayment option, including 

11 Federal Direct Consolidation Loans under 

12 part D of title IV of the Higher Education 

13 Act of 1965 (20 U.S.C. 1087a et seq.), as 

14 applicable; 

15 ‘‘(ii) if the borrower is eligible for 

16 servicemember or veteran benefits under 

17 the Servicemembers Civil Relief Act (50 

18 U.S.C. App. 501 et seq.) or other Federal 

19 or State law related to postsecondary edu20 cation loans; and 

21 ‘‘(iii) if the postsecondary education 

22 loan is eligible for discharge by the Sec23 retary of Education; 

24 ‘‘(B) make a good faith effort to establish 

25 live contact with the borrower to provide the 


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1 borrower information about alternative repay2 ment options and benefits for which the bor3 rower is eligible, including all terms, conditions, 

4 and fees or costs associated with such repay5 ment plan; 

6 ‘‘(C) provide to the borrower in writing, in 

7 simple and understandable terms, such informa8 tion required by subparagraph (B); 

9 ‘‘(D) allow the borrower not less than 30 

10 days to apply for an alternative repayment op11 tion or benefits, if eligible; 

12 ‘‘(E) notify the borrower that a service13 member and veterans liaison designated under 

14 subsection (l) is available to answer inquiries 

15 about servicemember and veteran benefits re16 lated to postsecondary education loans, includ17 ing the toll-free telephone number to contact 

18 the liaison; and 

19 ‘‘(F) notify the borrower that a repayment 

20 specialist office or unit designated under sub21 section (j) is available to answer inquiries re22 lated to alternative repayment options, includ23 ing the toll-free telephone number to contact 

24 the specialist. 


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1 ‘‘(2) FORBEARANCE OR DEFERMENT.—If, after 

2 receiving information about alternative repayment 

3 options from the repayment specialist, a borrower 

4 notifies the covered lender, servicer, or assignee that 

5 a long-term alternative repayment option is not ap6 propriate, the covered lender, servicer, or assignee 

7 may comply with this subsection by providing the 

8 borrower, in writing, in simple and understandable 

9 terms, information about short-term options to ad10 dress an anticipated short-term difficulty in making 

11 payments, such as forbearance or deferment options, 

12 including all terms, conditions, and fees or costs as13 sociated with such options. 

14 ‘‘(3) NOTIFICATION PROCESS.— 

15 ‘‘(A) IN GENERAL.—Each covered lender, 

16 servicer, or assignee shall establish a process, in 

17 accordance with paragraph (1), for a borrower 

18 to notify the covered lender, servicer, or as19 signee that— 

20 ‘‘(i) the borrower is having difficulty 

21 making payments on a postsecondary edu22 cation loan; and 

23 ‘‘(ii) a long-term alternative repay24 ment option is not appropriate. 


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1 ‘‘(B) BUREAU REQUIREMENTS.—The Di2 rector of the Bureau shall, based on consumer 

3 testing and in consultation with the Secretary 

4 of Education, promulgate rules establishing 

5 minimum standards for covered lenders, 

6 servicers, or assignees in carrying out the re7 quirements of this subsection and a model form 

8 for borrowers to notify a covered lender, 

9 servicer, or assignee of the information under 

10 this subsection. 

11 ‘‘(l) SERVICEMEMBERS, VETERANS, AND POSTSEC12 ONDARY EDUCATION LOANS.— 

13 ‘‘(1) SERVICEMEMBER AND VETERANS LIAI14 SON.—Each covered lender, servicer, or assignee 

15 shall designate an employee to act as the service16 member and veterans liaison who is responsible for 

17 answering inquiries from servicemembers and vet18 erans, and is specially trained on servicemember and 

19 veteran benefits under the Servicemembers Civil Re20 lief Act and other Federal or State laws related to 

21 postsecondary education loans. 

22 ‘‘(2) TOLL-FREE TELEPHONE NUMBER.—Each 

23 covered lender, servicer, or assignee shall maintain a 

24 toll-free telephone number that shall— 


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1 ‘‘(A) connect directly to the servicemember 

2 and veterans liaison designated under para3 graph (1); 

4 ‘‘(B) be made available on the primary 

5 internet website of the covered lender, servicer, 

6 or assignee and on monthly billing statements; 

7 and 

8 ‘‘(C) not subject borrowers to unreasonable 

9 call wait times. 

10 ‘‘(3) PROHIBITION ON CHARGE OFFS AND DE11 FAULT.—A covered lender, servicer, or assignee may 

12 not charge off or report a postsecondary education 

13 loan as delinquent, assigned to collection (internally 

14 or by referral to a third party), in default, or 

15 charged off to a credit reporting agency if the bor16 rower is on active duty in the Armed Forces (as de17 fined in section 101(d)(1) of title 10, United States 

18 Code) serving in a combat zone (as designated by 

19 the President under section 112(c) of the Internal 

20 Revenue Code of 1986). 

21 ‘‘(4) ADDITIONAL LIAISONS.—The Director, in 

22 consultation with the Secretary, shall determine ad23 ditional entities with whom borrowers interact, in24 cluding guaranty agencies, that shall designate an 

25 employee to act as the servicemember and veterans 


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1 liaison who is responsible for answering inquiries 

2 from servicemembers and veterans and is specially 

3 trained on servicemembers and veteran benefits and 

4 option under the Servicemembers Civil Relief Act. 

5 ‘‘(m) BORROWER’S LOAN HISTORY.— 

6 ‘‘(1) IN GENERAL.—A covered lender, servicer, 

7 or assignee shall make available in a secure elec8 tronic form usable by borrowers, or in writing upon 

9 request, the loan history of each borrower for each 

10 postsecondary education loan, separately desig11 nating— 

12 ‘‘(A) payment history, including repayment 

13 plan and payments— 

14 ‘‘(i) made on such loan to previous 

15 covered lender, servicer, or assignee; and 

16 ‘‘(ii) qualifying toward a loan forgive17 ness program and designating such pro18 gram; 

19 ‘‘(B) loan history, including any forbear20 ances, deferrals, delinquencies, assignment to 

21 collection, and charge offs; 

22 ‘‘(C) annual percentage rate history; 

23 ‘‘(D) key loan terms, including application 

24 of payments to interest, principal, and fees, 

25 origination date, principal, capitalized interest, 


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1 annual percentage rate, including any cap, loan 

2 term, and any contractual incentives; 

3 ‘‘(E) amount due to pay off the out4 standing balance; and 

5 ‘‘(F) any other items determined appro6 priate by rule of the Bureau. 

7 ‘‘(2) ORIGINAL DOCUMENTATION.—A covered 

8 lender, servicer, or assignee shall make available to 

9 the borrower, if requested, at no charge, copies of 

10 the original loan documents and the promissory note 

11 for each postsecondary education loan. 

12 ‘‘(n) ADDITIONAL SERVICING STANDARDS.— 

13 ‘‘(1) PROHIBITIONS.—A covered lender, servi14 cer, or assignee may not— 

15 ‘‘(A) charge a fee for responding to a 

16 qualified written request under this paragraph; 

17 ‘‘(B) fail to take timely action to respond 

18 to a qualified written request from a borrower 

19 to correct an error relating to an allocation of 

20 payment or the payoff amount of the postsec21 ondary education loan; 

22 ‘‘(C) fail to take reasonable steps to avail 

23 the borrower of all possible alternative repay24 ment arrangements to avoid default; 


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1 ‘‘(D) fail to perform the obligations re2 quired under title IV of the Higher Education 

3 Act of 1965; 

4 ‘‘(E) fail to respond within 10 business 

5 days to a request from a borrower to provide 

6 the name, address, and other relevant contact 

7 information of the loan holder of the borrower’s 

8 postsecondary education loan or, for a Federal 

9 Direct Loan or a Federal Perkins Loan, the 

10 Secretary of Education, or the institution of 

11 higher education who made the loan, respec12 tively; 

13 ‘‘(F) fail to comply with any applicable re14 quirement of the Servicemembers Civil Relief 

15 Act; 

16 ‘‘(G) charge a convenience, processing, or 

17 any other fee for payments made electronically 

18 or by telephone; 

19 ‘‘(H) fail to comply with any other obliga20 tion that the Bureau, by regulation, has deter21 mined to be appropriate to carry out the con22 sumer protection purposes of this paragraph; or 

23 ‘‘(I) fail to perform other standard serv24 icing duties and functions. 


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1 ‘‘(2) BUSINESS HOURS.—Covered lenders, servi2 cers, or assignees shall be open for borrower inquir3 ies and outreach— 

4 ‘‘(A) during normal business hours, Mon5 day through Friday; 

6 ‘‘(B) after business hours, Monday through 

7 Friday, including for not less than 3 hours 

8 after 5:00 p.m. in all continental United States 

9 time zones; 

10 ‘‘(C) for not less than 6 hours on Satur11 day; and 

12 ‘‘(D) for not less than 6 hours on Sunday. 

13 ‘‘(3) ADDITIONAL STANDARDS.—The Bureau 

14 may issue rules establishing additional servicing 

15 standards to reduce delinquencies, assignment to col16 lections, defaults, and charge offs, and to ensure 

17 borrowers understand their rights and obligations 

18 related to their postsecondary education loans. 

19 ‘‘(o) PROHIBITION ON LIMITING BORROWER LEGAL

20 ACTION BY COVERED LENDER, SERVICER, OR AS21 SIGNEE.— 

22 ‘‘(1) WAIVER OF RIGHTS AND REMEDIES.—Any 

23 rights and remedies available to borrowers against 

24 covered lenders, servicers, or assignees may not be 

25 waived by any agreement, policy, or form, including 


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1 by a mandatory predispute arbitration agreement or 

2 class action waiver. 

3 ‘‘(2) PREDISPUTE ARBITRATION AGREE4 MENTS.—No limitation or restriction on the ability 

5 of a borrower to pursue a claim in court with respect 

6 to a postsecondary education loan, including manda7 tory predispute arbitration agreements and class ac8 tion waivers, shall be valid or enforceable by a cov9 ered lender, servicer, or assignee, including as a 

10 third-party beneficiary or by estoppel. 

11 ‘‘(p) PREEMPTION.—Nothing in this paragraph may 

12 be construed to preempt any provision of State law regard13 ing postsecondary education loans where the State law 

14 provides stronger consumer protections. 

15 ‘‘(q) CIVIL LIABILITY.—A covered lender, servicer, or 

16 assignee that fails to comply with any requirement im17 posed under this paragraph shall be deemed a creditor 

18 that has failed to comply with a requirement under this 

19 chapter for purposes of liability under section 130 and 

20 such covered lender, servicer, or assignee shall be subject 

21 to the liability provisions under such section, including the 

22 provisions under paragraphs (1), (2)(A)(i), (2)(B), and 

23 (3) of section 130(a). 


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1 ‘‘(r) ELIGIBILITY FOR DISCHARGE.—The Bureau 

2 shall issue rules requiring covered lender, servicer, or as3 signee to— 

4 ‘‘(1) identify and contact borrowers who may be 

5 eligible for student loan discharge by the Secretary, 

6 including under section 437 of the Higher Education 

7 Act of 1965; and 

8 ‘‘(2) provide the borrower, in writing, in simple 

9 and understandable terms, information about obtain10 ing such discharge. 

11 ‘‘(s) MODEL DISCLOSURE FORM FOR ALTERNATIVE

12 REPAYMENT OPTIONS, FORBEARANCE, AND DEFERMENT

13 OPTIONS.—Not later than 2 years after the date of enact14 ment of this section, the Director of the Bureau shall, 

15 based on consumer testing and in consultation with the 

16 Secretary of Education, develop and issue, pursuant to a 

17 formal rulemaking, model forms to allow borrowers to 

18 compare alternative repayment options, forbearance, and 

19 deferment options with the borrower’s existing repayment 

20 plan with respect to a postsecondary education loan. In 

21 developing such forms, the Director shall consider and 

22 evaluate the following for inclusion: 

23 ‘‘(1) The total amount to be paid over the life 

24 of the loan. 


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1 ‘‘(2) The total amount in interest to be paid 

2 over the life of the loan. 

3 ‘‘(3) The monthly payment amount. 

4 ‘‘(4) The expected pay-off date. 

5 ‘‘(5) Other related fees and costs, as applicable. 

6 ‘‘(6) Eligibility requirements, and how the bor7 rower can apply for an alternative repayment option, 

8 forbearance, or deferment option. 

9 ‘‘(7) Any relevant consequences due to action or 

10 inaction, such as default, including any actions that 

11 would result in the loss of eligibility for alternative 

12 repayment options, forbearance, or deferment op13 tions. 

14 ‘‘(t) STUDENT LOAN SERVICING INTERAGENCY

15 WORKING GROUP.— 

16 ‘‘(1) IN GENERAL.—Not later than 30 days 

17 after the date of enactment of this section, the Di18 rector of the Bureau shall establish a student loan 

19 servicing interagency working group co-chaired by 

20 the Director and the Secretary of Education and in21 cluding the Chief Operating Officer of the Office of 

22 Federal Student Aid of the Department of Edu23 cation, the Director of the Office of Management 

24 and Budget, the Secretary of the Treasury, and the 


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1 heads of any other relevant Federal departments or 

2 agencies. 

3 ‘‘(2) ADVISORY REPORT ON RULEMAKING.— 

4 ‘‘(A) IN GENERAL.—Not later than 120 

5 days after the date the working group under 

6 paragraph (1) is established, the working group 

7 shall publish an advisory report making rec8 ommendations to the Director of the Bureau re9 lated to the promulgation of regulations under 

10 this section with respect to entities with which 

11 the Secretary has entered into a contract under 

12 section 456 of the Higher Education Act of 

13 1965. 

14 ‘‘(B) PUBLIC FEEDBACK.—Following the 

15 publication of the advisory report required 

16 under subparagraph (A), the working group 

17 shall accept, for not less than 60 days, from the 

18 public specific feedback on the recommenda19 tions included in the report. 

20 ‘‘(3) PUBLICATION OF FINAL RECOMMENDA21 TIONS.—Not later than 30 days following the con22 clusion of the public feedback process described in 

23 paragraph (2)(B), the working group shall publish 

24 final recommendations for the Director of the BuVerDate Sep 11 2014 21:09 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H5294.IH H5294

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1 reau related to the promulgation of regulations 

2 under this section. 

3 ‘‘(4) POLICY DIRECTION TO FEDERAL STUDENT

4 AID.—The working group shall develop and propose 

5 policy direction for the Secretary of Education to 

6 issue to the Office of Federal Student Aid, through 

7 which the Office of Federal Student Aid shall incor8 porate, into contracts awarded under section 456 of 

9 the Higher Education Act of 1965, applicable re10 quirements and standards promulgated under this 

11 section. 

12 ‘‘(5) MEETINGS.—After the working group pub13 lishes final recommendations under paragraph (3), 

14 the working group shall meet not less often than 

15 once per year including to— 

16 ‘‘(A) evaluate the application of regulations 

17 promulgated under this section on entities with 

18 which the Secretary has entered into a contract 

19 under section 456 of the Higher Education Act 

20 of 1965; 

21 ‘‘(B) evaluate the Office of Federal Stu22 dent Aid’s implementation of policy direction 

23 developed pursuant to paragraph (4); 

24 ‘‘(C) develop and implement an oversight 

25 plan to ensure compliance by entities with 


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1 which the Secretary has entered into a contract 

2 under section 456 of the Higher Education Act 

3 of 1965 with policy direction developed under 

4 paragraph (4) and regulations promulgated 

5 under this section; and 

6 ‘‘(D) undertake other activities to improve 

7 coordination among the members of the work8 ing group as it relates to the Secretary’s admin9 istration of the Federal Direct Loan Program. 

10 ‘‘(6) RULE OF CONSTRUCTION.—Nothing in 

11 this subsection may be construed to alter, limit, or 

12 restrict the Bureau’s obligations under chapter 5 of 

13 title 5, United States Code (commonly known as the 

14 ‘Administrative Procedures Act’), including the Di15 rector’s obligation to provide notice, solicit public 

16 comment, and respond to such comment when 

17 issuing regulations.’’; and 

18 (3) in the table of contents, by striking the item 

19 relating to section 140A and inserting the following: 

‘‘140A. Postsecondary education loan borrower bill of rights. 

‘‘140B. Procedure for timely settlement of estates of decedent obligors.’’. 

20 SEC. 3. STANDARDS FOR REPORTING STUDENT LOAN IN21 FORMATION TO CONSUMER REPORTING 

22 AGENCIES. 

23 Section 623 of the Fair Credit Reporting Act (15 

24 U.S.C. 1681s–2) is amended— 


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1 (1) by adding at the end the following: 

2 ‘‘(f) REPORTING INFORMATION RELATED TO STU3 DENT LOANS.— 

4 ‘‘(1) STANDARDS FOR REPORTING.—The Bu5 reau, in consultation with the Secretary of Edu6 cation, shall issue rules to establish standards for 

7 the furnishing of information related to student 

8 loans to a consumer reporting agency and any fur9 nisher of such information shall comply with such 

10 rules. 

11 ‘‘(2) SPECIFIC STANDARDS.—In issuing rules 

12 under paragraph (1), the Bureau shall specifically 

13 establish standards for the furnishing of information 

14 related to— 

15 ‘‘(A) the transfer of the servicing of a stu16 dent loan to a new servicer; 

17 ‘‘(B) the loan term or duration of a stu18 dent loan; or 

19 ‘‘(C) a student loan being placed in for20 bearance. 

21 ‘‘(3) RESPONSIBILITIES OF THE PRIVATE EDU22 CATION LOAN OMBUDSMAN.— 

23 ‘‘(A) MONITORING CONSUMER COM24 PLAINTS.—The Private Education Loan Om25 budsman of the Bureau (in this subsection reVerDate Sep 11 2014 21:09 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H5294.IH H5294

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1 ferred to as the ‘Ombudsman’) shall monitor 

2 complaints from consumers to assess compli3 ance with the rules issued under paragraph (1) 

4 and, if the Ombudsman determines it appro5 priate, recommend supervisory or enforcement 

6 actions to the Director of the Bureau with re7 spect to a person the Ombudsman determines 

8 may be in violation of such rules. 

9 ‘‘(B) RECOMMENDATIONS ON DISPUTE

10 PROCESS.—The Ombudsman shall issue peri11 odic recommendations to the Director of the 

12 Bureau and the Congress on regulatory and 

13 statutory changes that the Ombudsman believes 

14 would improve the process under this section 

15 for disputing information related to student 

16 loans that has been furnished to a consumer re17 porting agency. 

18 ‘‘(4) MONITORING COMPLIANCE.—The Director 

19 of the Bureau shall monitor compliance with the 

20 rules issued under paragraph (1) and, if the Direc21 tor determines that a person may be in violation of 

22 such rules, take such supervisory or enforcement ac23 tions as the Director determines appropriate. 

24 ‘‘(5) STUDENT LOAN DEFINED.—In this sub25 section, the term ‘student loan’ means— 


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1 ‘‘(A) a private education loan, as defined 

2 in section 140(a) of the Truth in Lending Act; 

3 and 

4 ‘‘(B) a loan made, insured, or guaranteed 

5 under title IV of the Higher Education Act of 

6 1965.’’; and 

7 (2) in subsection (c)(2), by striking ‘‘subsection 

8 (b) of this section’’ and inserting ‘‘subsection (b) or 

9 (f) of this section (including any regulations issued 

10 thereunder)’’. 

11 SEC. 4. INSTITUTIONAL CERTIFICATION. 

12 (a) IN GENERAL.—Section 128(e) of the Truth in 

13 Lending Act (15 U.S.C. 1638(e)) is amended— 

14 (1) by striking paragraph (3) and inserting the 

15 following: 

16 ‘‘(3) PRIVATE LOAN CERTIFICATION RE17 QUIRED.— 

18 ‘‘(A) IN GENERAL.—Except as provided in 

19 subparagraph (B), a private educational lender 

20 shall, before consummating any loan with re21 spect to a student attending an institution of 

22 higher education, obtain, from the institution of 

23 higher education the student intends to attend, 

24 a private loan certification as described in sub25 paragraph (E). 


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1 ‘‘(B) EXCEPTION.—A private educational 

2 lender may consummate a private education 

3 loan with respect to a student attending an in4 stitution of higher education without obtaining 

5 a private loan certification as required in sub6 paragraph (A) if, in, before the end of the 15- 

7 day period following the date on which the pri8 vate educational lender requests a certification 

9 from such institution, such institution does 

10 not— 

11 ‘‘(i) notify the private educational 

12 lender of the refusal of the institution to 

13 provide such certification; or 

14 ‘‘(ii) notify the private educational 

15 lender that more time will be needed to 

16 comply with the request for the private 

17 loan certification. 

18 ‘‘(C) PRIVATE LOAN CERTIFICATION CON19 TENTS.—Any private loan certification provided 

20 by an institution of higher education pursuant 

21 to subparagraph (A) shall include— 

22 ‘‘(i) the enrollment status of the stu23 dent; 

24 ‘‘(ii) the cost of attendance at the in25 stitution for the student as determined by 


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1 the institution under part F of title IV of 

2 the Higher Education Act of 1965; and 

3 ‘‘(iii) the difference between— 

4 ‘‘(I) such cost of attendance; and 

5 ‘‘(II) the total estimated amount 

6 of financial assistance for such stu7 dent, including assistance received 

8 under title IV of the Higher Edu9 cation Act of 1965. 

10 ‘‘(D) CONSUMMATION OF LOAN WITHOUT

11 CERTIFICATION.—If a private educational lend12 er consummates a loan in violation of this sub13 section, such private education lender shall re14 port the consummation of such loan in a man15 ner determined by the Bureau. 

16 ‘‘(E) INSTITUTION PROVISION OF CERTIFI17 CATION.—If a private educational lender sub18 mits a request to an institution of higher edu19 cation for a private loan certificate, such insti20 tution of higher education shall, not later than 

21 the end of the 15-day period beginning on the 

22 date such institution receives such request— 

23 ‘‘(i) provide such certification; 


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1 ‘‘(ii) notify the private educational 

2 lender that the institution refuses to pro3 vide such certification; or 

4 ‘‘(iii) notify the private educational 

5 lender that more time will be needed to 

6 comply with the request for the private 

7 loan certification. 

8 ‘‘(F) INSTITUTION DISCLOSURES TO BOR9 ROWER.—Before providing a private loan cer10 tification to a private educational lender, an in11 stitution of higher education shall provide to 

12 the borrower notice of— 

13 ‘‘(i) the amount of any Federal stu14 dent assistance under title IV of the High15 er Education Act of 1965 for which the 

16 borrower is eligible; 

17 ‘‘(ii) the advantages of Federal stu18 dent assistance under title IV of the High19 er Education Act of 1965, including disclo20 sure of the fixed interest rates, deferments, 

21 flexible repayment options, loan forgiveness 

22 programs, and other protections; 

23 ‘‘(iii) the right of the borrower to 

24 choose a private educational lender of their 

25 choice; 


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1 ‘‘(iv) the impact the private education 

2 loan for which the institution of higher 

3 education is submitting a private loan cer4 tification would have on the eligibility of 

5 the borrower for other financial assistance 

6 including Federal assistance under title IV 

7 of the Higher Education Act of 1965; 

8 ‘‘(v) the right of the borrower to ac9 cept or reject a private education loan 

10 within the 30-day period following a pri11 vate educational lender’s approval of the 

12 borrower’s application for a private edu13 cation loan; and 

14 ‘‘(vi) the right of the borrower to can15 cel any private educational loan within 3 

16 days of the consummation of such loan.’’; 

17 (2) by redesignating paragraphs (9), (10), and 

18 (11) as paragraphs (12), (13), and (14), respec19 tively; and— 

20 (A) by inserting after paragraph (8) the 

21 following: 

22 ‘‘(9) LOAN STATEMENTS FOR BORROWERS.— 

23 ‘‘(A) IN GENERAL.—A private educational 

24 lender that consummates a private education 

25 loan with respect to a student attending an inVerDate Sep 11 2014 21:09 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H5294.IH H5294

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1 stitution of higher education shall provide a 

2 loan statement to the borrower not less than 

3 once every 3 months during the period during 

4 which the student attends the institution of 

5 higher education. 

6 ‘‘(B) CONTENTS OF LOAN STATEMENT.— 

7 Any loan statement provided to a borrower pur8 suant to subparagraph (A) shall— 

9 ‘‘(i) report the amount of the bor10 rower’s total remaining debt with the pri11 vate educational lender, including any ac12 crued but unpaid interest and capitalized 

13 interest; and 

14 ‘‘(ii) report the amount of any in15 crease in the borrower’s total debt with the 

16 private educational lender in the period fol17 lowing the most recent loan statement was 

18 provided to the borrower. 

19 ‘‘(10) NOTIFICATION OF PRIVATE EDU20 CATIONAL LOAN.—Not later than 3 days after a pri21 vate educational lender consummates a private edu22 cation loan with respect to a student attending an 

23 institution of higher education, such private edu24 cational lender shall notify the institution of higher 

25 education the student is to attend of the amount of 


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1 the private education loan the private educational 

2 lender has extended to such student. 

3 ‘‘(11) ANNUAL REPORT.—Each private edu4 cational lender shall, each year, submit to the Bu5 reau information about the private education loans 

6 such private educational lender has entered.’’. 

7 (b) DEFINITION OF PRIVATE EDUCATION LOAN.— 

8 Section 140(a)(8)(A) of the Truth in Lending Act (15 

9 U.S.C. 1650(a)(8)(A)) is amended— 

10 (1) by redesignating clause (ii) as clause (iii); 

11 (2) in clause (i), by striking ‘‘and’’ after the 

12 semicolon; and 

13 (3) by inserting after clause (i) the following: 

14 ‘‘(ii) is not made, insured, or guaran15 teed under title VII or title VIII of the 

16 Public Health Service Act (42 U.S.C. 292 

17 et seq. and 296 et seq.); and’’. 

18 (c) REGULATIONS.—Not later than 365 days after 

19 the date of enactment of this Act, the Director of the Bu20 reau of Consumer Financial Protection shall issue rules 

21 in final form to implement paragraphs (3), (9), and (11) 

22 of section 128(e) of the Truth in Lending Act, as amended 

23 by this section. Such regulations shall become effective not 

24 later than 6 months after their date of issuance. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 subsections (a) and (b) shall take effect 1 year after the 

3 date of the enactment of this section. 

4 (e) REPORT.— 

5 (1) IN GENERAL.—Not later than 24 months 

6 after issuing rules under subsection (c), the Director 

7 of the Bureau of Consumer Financial Protection 

8 shall submit to the Congress a report about the com9 pliance of private educational lenders and institu10 tions of higher education with section 128(e) of the 

11 Truth in Lending Act, as amended by this section. 

12 (2) CONTENTS.—Any report submitted to Con13 gress pursuant to paragraph (1) shall include infor14 mation about the degree to which institutions of 

15 higher education, in making disclosures to borrowers 

16 pursuant to section 128(e)(3)(F) of the Truth in 

17 Lending Act, effectively encourage borrowers to ex18 haust Federal assistance under title IV of the High19 er Education Act of 1965 before entering a private 

20 educational loan. 

Æ 


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