II 

115TH CONGRESS 

1ST SESSION S. 2180 

To establish additional protections and disclosures for students and co-signers 

with respect to student loans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 30, 2017 

Mr. MENENDEZ (for himself, Ms. WARREN, Mr. BOOKER, and Mrs. GILLIBRAND) introduced the following bill; which was read twice and referred 

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

A BILL 

To establish additional protections and disclosures for students and co-signers with respect to student loans, 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; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Christopher Bryski Student Loan Protection Act’’ or 

6 ‘‘Christopher’s Law’’. 

7 (b) FINDINGS.—Congress finds the following: 


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1 (1) The Bureau of Consumer Financial Protec2 tion (referred to in this section as the ‘‘CFPB’’) 

3 Student Loan Ombudsman stated the following: 

4 (A) ‘‘The CFPB received more than 7,700 

5 private student loan complaints and approxi6 mately 2,300 debt collection complaints related 

7 to student loans between September 1, 2016, 

8 and August 31, 2017.’’. 

9 (B) ‘‘Co-signers complain that information 

10 about discharge or alternative arrangements in 

11 the case of death of the primary borrower is not 

12 readily available and that decisions are made on 

13 a case-by-case basis, giving co-signers little un14 derstanding of how the process works, or if they 

15 will be successful.’’. 

16 (C) ‘‘The complaints and input received by 

17 the CFPB resemble many of the same issues 

18 experienced by mortgage borrowers, such as im19 proper application of payments, untimeliness in 

20 error resolution, and inability to contact appro21 priate personnel in times of hardship.’’. 

22 (D) ‘‘The difference between Federal and 

23 private student loans in periods of disability 

24 was not well-understood.’’. 


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1 (2) An estimated 2,500,000 individuals sustain 

2 a traumatic brain injury each year and older adoles3 cents between 15 and 19 years of age are more like4 ly to sustain a traumatic brain injury than individ5 uals in other age groups. 

6 (3) It has been estimated that the annual inci7 dence of spinal cord injury, not including those indi8 viduals who die at the scene of an accident, is ap9 proximately 54 cases per 1,000,000 individuals in 

10 the United States, or approximately 17,000 new 

11 cases each year. These injuries can lead to perma12 nent disability or loss of movement and can prohibit 

13 the victim from engaging in any substantial gainful 

14 activity. 

15 (4) According to the CFPB, more than 90 per16 cent of new private student loans are co-signed. 

17 (5) According to the CFPB, private student 

18 loan companies provide co-signer release to less than 

19 1 percent of eligible borrowers. 

20 SEC. 2. ADDITIONAL STUDENT LOAN PROTECTIONS. 

21 (a) IN GENERAL.—Section 140 of the Truth in Lend22 ing Act (15 U.S.C. 1650) is amended by adding at the 

23 end the following: 


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1 ‘‘(g) ADDITIONAL PROTECTIONS RELATING TO BOR2 ROWER OR CO-SIGNER OF A PRIVATE EDUCATION

3 LOAN.— 

4 ‘‘(1) CLEAR AND CONSPICUOUS DESCRIPTION

5 OF OBLIGATION OF BORROWER AND CO-SIGNER.—In 

6 the case of any private educational lender that pro7 vides a private education loan, the lender shall clear8 ly and conspicuously describe, in writing, the obliga9 tions of a co-signer with respect to the loan, includ10 ing the effect that the death, disability, or inability 

11 to engage in any substantial gainful activity of the 

12 borrower or any co-signer would have on any such 

13 obligation, in language that the Bureau determines 

14 would give a reasonable person a reasonable under15 standing of the obligation being assumed by becom16 ing a co-signer for the loan. 

17 ‘‘(2) PROHIBITION ON AUTOMATIC DEFAULT

18 WITH RESPECT TO A PERFORMING LOAN.— 

19 ‘‘(A) DEATH, DISABILITY, OR BANKRUPTCY

20 OF CO-SIGNER.—If a private education loan in21 cludes a co-signer, a private educational lender 

22 may not take any adverse action (including de23 claring a default, accelerating any loan obliga24 tion, increasing the interest rate, or altering 

25 any obligations under the private education loan 


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1 in a way that is adverse to the borrower) 

2 against the borrower based on— 

3 ‘‘(i) the death, disability, or inability 

4 to engage in any substantial gainful activ5 ity of the co-signer; or 

6 ‘‘(ii) the bankruptcy of the co-signer. 

7 ‘‘(B) DEATH, DISABILITY, OR BANK8 RUPTCY OF BORROWER.—If a private education 

9 loan includes a co-signer, a private educational 

10 lender may not take any adverse action (includ11 ing declaring a default, accelerating any loan 

12 obligation, increasing the interest rate, or alter13 ing any obligations under the private education 

14 loan in a way that is adverse to any co-signer) 

15 against the co-signer based on— 

16 ‘‘(i) the death, disability, or inability 

17 to engage in any substantial gainful activ18 ity of the borrower; or 

19 ‘‘(ii) the bankruptcy of the borrower. 

20 ‘‘(3) CO-SIGNER RELEASE.— 

21 ‘‘(A) REQUIREMENTS FOR AUTOMATIC RE22 LEASE OF CO-SIGNER.— 

23 ‘‘(i) CRITERIA ESTABLISHED BY THE

24 BUREAU.—Not later than 180 days after 

25 the date of enactment of this subsection, 


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1 the Bureau shall establish criteria, which, 

2 if met by the borrower of a private edu3 cation loan, shall require the private edu4 cational lender with respect to, or servicer 

5 of, the private education loan, as applica6 ble, to promptly release any co-signer from 

7 the obligations of the co-signer under the 

8 loan without requiring any action on behalf 

9 of the borrower. 

10 ‘‘(ii) CRITERIA ESTABLISHED BY

11 LENDER.—A private educational lender 

12 may establish criteria for automatic release 

13 that are different from the criteria de14 scribed in clause (i) if the criteria estab15 lished by the lender are not more restric16 tive with respect to the borrower or any co17 signer of the private education loan than 

18 the criteria established under clause (i). 

19 ‘‘(B) DISCLOSURE OF CRITERIA FOR CO20 SIGNER RELEASE.—A private educational lend21 er shall— 

22 ‘‘(i) include in the promissory note of 

23 a private education loan the criteria under 

24 which a co-signer may be released from the 


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1 obligation of the co-signer under a private 

2 education loan under this paragraph; and 

3 ‘‘(ii) disclose to the borrower and any 

4 co-signer at the time the private education 

5 loan is consummated, clearly and conspicu6 ously, the criteria under which a co-signer 

7 may be released from the obligation of the 

8 co-signer under a private education loan. 

9 ‘‘(C) MODIFICATIONS TO CRITERIA.—If a 

10 private education loan has a co-signer, the pri11 vate educational lender with respect to, or 

12 servicer of, the private education loan, as appli13 cable, may not modify the criteria under which 

14 the co-signer may be released from the obliga15 tion of the co-signer under the private edu16 cation loan without the consent of the borrower 

17 and the co-signer if the modification would be 

18 adverse to the borrower. 

19 ‘‘(D) NOTIFICATION ON RELEASE.—A pri20 vate educational lender with respect to, or 

21 servicer of, a private education loan, as applica22 ble, shall promptly notify the borrower and any 

23 co-signers for the private education loan if a co24 signer is released from the obligations of the coVerDate Sep 11 2014 04:23 Dec 01, 2017 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2180.IS S2180

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1 signer under the private education loan under 

2 this paragraph. 

3 ‘‘(E) MODIFICATION OF EVALUATION OF

4 CREDITWORTHINESS, CREDIT STANDING, OR

5 CREDIT CAPACITY.—In determining whether the 

6 criteria for a co-signer release are met, a pri7 vate educational lender with respect to, or 

8 servicer of, a private education loan, as applica9 ble, may not evaluate the creditworthiness, 

10 credit standing, or credit capacity of the bor11 rower or a co-signer of the private education 

12 loan using a standard that would be more ad13 verse to the borrower or co-signer, as applica14 ble, than the standard the private educational 

15 lender used to evaluate the creditworthiness, 

16 credit standing, or credit capacity of the bor17 rower or co-signer on the date on which the pri18 vate education loan was consummated. 

19 ‘‘(4) DESIGNATION OF INDIVIDUAL TO ACT ON

20 BEHALF OF THE BORROWER.—In the case of any 

21 private educational lender that extends a private 

22 education loan, the lender shall provide the borrower 

23 an option to designate an individual to have the 

24 legal authority to act on behalf of the borrower with 

25 respect to the private education loan in the event of 


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1 the death, disability, or inability to engage in any 

2 substantial gainful activity of the borrower. 

3 ‘‘(5) COUNSELING.—In the case of any private 

4 educational lender that extends a private education 

5 loan, the lender shall ensure that the borrower, and 

6 any co-signer, receives comprehensive information on 

7 the terms and conditions of the loan and of the re8 sponsibilities the borrower has with respect to the 

9 loan, including the information required under sub10 paragraphs (H), (I), (K), (L), (M), and (N) of sec11 tion 485(l)(2) of the Higher Education Act of 1965 

12 (20 U.S.C. 1092(l)(2)). 

13 ‘‘(6) MODEL FORM.—The Bureau shall publish 

14 a model form under section 105 for describing the 

15 obligation of a co-signer for the purposes of para16 graph (1). 

17 ‘‘(7) DEFINITION OF DEATH, DISABILITY, OR

18 INABILITY TO ENGAGE IN ANY SUBSTANTIAL GAIN19 FUL ACTIVITY.—For the purposes of this subsection 

20 with respect to a borrower or co-signer, the term 

21 ‘death, disability, or inability to engage in any sub22 stantial gainful activity’— 

23 ‘‘(A) means any condition described in sec24 tion 437(a) of the Higher Education Act of 

25 1965 (20 U.S.C. 1087(a)); and 


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1 ‘‘(B) shall be interpreted by the Bureau in 

2 such a manner as to conform with the regula3 tions prescribed by the Secretary of Education 

4 under section 437(a) of the Higher Education 

5 Act of 1965 (20 U.S.C. 1087(a)) to the fullest 

6 extent practicable, including safeguards to pre7 vent fraud and abuse.’’. 

8 (b) DEFINITIONS.—Section 140(a) of the Truth in 

9 Lending Act (15 U.S.C. 1650(a)) is amended— 

10 (1) by redesignating paragraphs (1) through 

11 (8) as paragraphs (2) through (9), respectively; and 

12 (2) by inserting before paragraph (2), as so re13 designated, the following: 

14 ‘‘(1) the term ‘co-signer’— 

15 ‘‘(A) means any individual who is liable for 

16 the obligation of another without compensation, 

17 regardless of how designated in the contract or 

18 instrument with respect to that obligation; 

19 ‘‘(B) includes any person the signature of 

20 which is requested as condition to grant credit 

21 or to forbear on collection; and 

22 ‘‘(C) does not include a spouse of an indi23 vidual described in subparagraph (A), the sig24 nature of whom is needed to perfect the secu25 rity interest in a loan;’’. 


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1 (c) RULEMAKING.—Not later than 1 year after the 

2 date of enactment of this Act, the Bureau of Consumer 

3 Financial Protection shall issue regulations to carry out 

4 subsection (g) of section 140 of the Truth in Lending Act 

5 (15 U.S.C. 1650), as added by paragraph (1). 

6 SEC. 3. FEDERAL STUDENT LOANS. 

7 (a) COUNSELING INFORMATION.—Section 485(l)(2) 

8 of the Higher Education Act of 1965 (20 U.S.C. 

9 1092(l)(2)) is amended by adding at the end the following: 

10 ‘‘(L) Information regarding the conditions 

11 required to discharge the loan due to the death, 

12 disability, or inability to engage in any substan13 tial gainful activity of the borrower in accord14 ance with section 437(a). 

15 ‘‘(M) Any repayment, refinance, deferment, 

16 forbearance, or forgiveness opportunities avail17 able to the borrower or co-signer in the event 

18 of the death, disability, or inability to engage in 

19 any substantial gainful activity of the borrower 

20 or co-signer. 

21 ‘‘(N) The effect that the death, disability, 

22 or inability to engage in any substantial gainful 

23 activity of the borrower would have on the obli24 gations of the borrower and any co-signer of the 

25 loan.’’. 


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1 (b) DESIGNATION OF INDIVIDUAL TO ACT ON BE2 HALF OF THE BORROWER.—Section 484 of the Higher 

3 Education Act of 1965 (20 U.S.C. 1091) is amended— 

4 (1) in subsection (a), by striking paragraph (4) 

5 and inserting the following: 

6 ‘‘(4) file with the Secretary, as part of the 

7 original financial aid application process, a certifi8 cation, which need not be notarized, but which— 

9 ‘‘(A) shall include— 

10 ‘‘(i) a statement of educational pur11 pose stating that the money attributable to 

12 such grant, loan, or loan guarantee will be 

13 used solely for expenses related to attend14 ance or continued attendance at such insti15 tution; and 

16 ‘‘(ii) such student’s social security 

17 number; and 

18 ‘‘(B) may include a designation by such 

19 student of an individual who shall have the 

20 legal authority to act on behalf of the student 

21 with respect to any loan to the student under 

22 this title in the event of the student’s death, 

23 disability, or inability to engage in any substan24 tial gainful activity;’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(u) OPTION TO DESIGNATE INDIVIDUAL TO ACT ON

2 BEHALF OF THE BORROWER IN CLEAR AND CON3 SPICUOUS MANNER.—The option for a student to make 

4 a designation described in subsection (a)(4)(B) shall be 

5 provided in a clear and conspicuous manner to the stu6 dent.’’. 

7 SEC. 4. RULE OF CONSTRUCTION. 

8 Nothing in this Act, or any amendment made by this 

9 Act, may be construed to adversely affect the eligibility 

10 of a student to receive any grant, loan, or work assistance 

11 under part C or part G of title IV of the Higher Education 

12 Act of 1965 (20 U.S.C. 1087–51 et seq. and 20 U.S.C. 

13 1088 et seq.) based on a designation, or the lack of a des14 ignation, under section 484(a)(4)(B) of that Act (20 

15 U.S.C. 1091(a)(4)(B)), as added by section 3(b)(1). 

Æ 


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