II 

113TH CONGRESS 

1ST SESSION S. 1773 

To amend the Truth in Lending Act to provide for the discharge of student 

loan obligations upon the death or disability of the student borrower, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 21, 2013 

Mr. SCHUMER introduced the following bill; which was read twice and referred 

to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend the Truth in Lending Act to provide for the 

discharge of student loan obligations upon the death 

or disability of the student borrower, and for other purposes. 

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 ‘‘Andrew Prior Act’’ 

5 or ‘‘Andrew’s Law’’. 


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•S 1773 IS

1 SEC. 2. DISCHARGE OF PRIVATE STUDENT LOANS. 

2 Section 128(e) of the Truth in Lending Act (15 

3 U.S.C. 1638(e)) is amended by adding at the end the fol4 lowing: 

5 ‘‘(12) DISCHARGE OF PRIVATE EDUCATIONAL

6 LOANS IN THE EVENT OF THE DEATH OF THE BOR7 ROWER.— 

8 ‘‘(A) DEFINITIONS.—As used in this para9 graph— 

10 ‘‘(i) the term ‘cosigner’— 

11 ‘‘(I) means any individual who is 

12 liable for the obligation of another 

13 without compensation, regardless of 

14 how designated in the contract or in15 strument relating to the obligation; 

16 ‘‘(II) includes any person whose 

17 signature is requested as a condition 

18 to grant credit or to forbear on collec19 tion; and 

20 ‘‘(III) does not include a spouse 

21 of an individual referred to in sub22 clause (I) whose signature is needed 

23 to perfect the security interest in the 

24 loan; 


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•S 1773 IS

1 ‘‘(ii) the term ‘private educational 

2 lender’ has the same meaning as in section 

3 140; 

4 ‘‘(iii) the term ‘private education loan’ 

5 has the same meaning as in section 140; 

6 and 

7 ‘‘(iv) the term ‘totally and perma8 nently disabled’ means— 

9 ‘‘(I) with respect to a person 

10 other than a veteran, that the person 

11 is unable to engage in any substantial 

12 gainful activity because of a medically 

13 determinable physical or mental im14 pairment that— 

15 ‘‘(aa) can be expected to re16 sult in death; 

17 ‘‘(bb) has lasted for a con18 tinuous period of not less than 

19 60 months; or 

20 ‘‘(cc) can be expected to last 

21 for a continuous period of not 

22 less than 60 months; and 

23 ‘‘(II) in the case of a veteran (as 

24 that term is defined in section 101 of 

25 title 38, United States Code), a deterVerDate Mar 15 2010 02:16 Nov 27, 2013 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1773.IS S1773

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•S 1773 IS

1 mination from the Secretary of Vet2 erans Affairs that— 

3 ‘‘(aa) such person has a 

4 service-connected disability or 

5 service-connected disabilities that 

6 are 100 percent disabling; or 

7 ‘‘(bb) such person is totally 

8 disabled, based on an Individual 

9 Unemployability determination by 

10 the Secretary of Veterans Affairs. 

11 ‘‘(B) PRIVATE EDUCATIONAL LOANS DIS12 CHARGED.—In the event of the death of a bor13 rower of a private educational loan, or if the 

14 borrower of a private educational loan is totally 

15 and permanently disabled, neither the estate of 

16 the borrower nor any cosigner of such private 

17 educational loan shall be obligated to repay the 

18 outstanding principal or interest on the loan. 

19 ‘‘(C) LIMITATIONS.—The Bureau— 

20 ‘‘(i) shall develop such safeguards as 

21 may be necessary and appropriate to pre22 vent fraud and abuse in the discharge of li23 ability under this subsection; and 

24 ‘‘(ii) notwithstanding any other provi25 sion of this subsection, may promulgate 


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•S 1773 IS

1 regulations to reinstate the obligation of 

2 loans discharged under this subsection in 

3 any case in which the Director determines 

4 necessary to protect the public interest.’’. 

5 SEC. 3. REGULATIONS. 

6 The Director of the Bureau of Consumer Financial 

7 Protection may issue such regulations as may be necessary 

8 and appropriate to carry out this Act. 

Æ 


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