I 

114TH CONGRESS 

1ST SESSION H. R. 3474 

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

with respect to student loans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 10, 2015 

Mr. PASCRELL introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Education and the Workforce, 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 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) According to the Bureau of Consumer Fi2 nancial Protection (hereafter referred to as the 

3 ‘‘CFPB’’) Student Loan Ombudsman: 

4 (A) ‘‘The CFPB received more than 3,100 

5 private student loan complaints and approxi6 mately 1,100 debt collection complaints related 

7 to student loans between October 1, 2014, and 

8 March 31, 2015.’’. 

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 1,700,000 people sustain a 

2 traumatic brain injury each year, with older adoles3 cents aged 15 to 19 years old more likely to sustain 

4 a traumatic brain injury than other age groups. 

5 (3) It has been estimated that the annual inci6 dence of spinal cord injury, not including those who 

7 die at the scene of an accident, is approximately 40 

8 cases per 1,000,000 people in the United States or 

9 approximately 12,000 new cases each year. These in10 juries can lead to permanent disability or loss of 

11 movement and can prohibit the victim from engaging 

12 in any substantial gainful activity. 

13 (4) According to the CFPB, more than 90 per14 cent of new private student loans are co-signed. 

15 (5) According to the CFPB, private student 

16 loan companies provide co-signer release to less than 

17 1 percent of eligible borrowers. 

18 SEC. 2. ADDITIONAL STUDENT LOAN PROTECTIONS. 

19 (a) IN GENERAL.—Section 140 of the Truth in Lend20 ing Act (15 U.S.C. 1650) is amended by adding at the 

21 end the following: 

22 ‘‘(g) ADDITIONAL PROTECTIONS RELATING TO BOR23 ROWER OR CO-SIGNER OF A PRIVATE EDUCATION

24 LOAN.— 


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1 ‘‘(1) CLEAR AND CONSPICUOUS DESCRIPTION

2 OF BORROWER’S AND CO-SIGNER’S OBLIGATION.—In 

3 the case of any private educational lender who ex4 tends a private education loan, the lender shall 

5 clearly and conspicuously describe, in writing, the 

6 co-signer’s obligations with respect to the loan, in7 cluding the effect the death, disability, or inability to 

8 engage in any substantial gainful activity of the bor9 rower or any co-signer would have on any such obli10 gation, in language that the Bureau determines 

11 would give a reasonable person a reasonable under12 standing of the obligation being assumed by becom13 ing a co-signer for the loan. 

14 ‘‘(2) PROHIBITION ON AUTOMATIC DEFAULT

15 WITH RESPECT TO A PERFORMING LOAN.— 

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

17 OF CO-SIGNER.—If a private education loan in18 cludes a co-signer, a private educational lender 

19 may not take any adverse action (including de20 claring a default, accelerating any loan obliga21 tion, increasing the interest rate, or altering 

22 any obligations under the private education loan 

23 in a way that is adverse to the borrower) 

24 against the borrower based on the death, disVerDate Sep 11 2014 04:28 Sep 12, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3474.IH H3474

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1 ability, or inability to engage in any substantial 

2 gainful activity or bankruptcy of a co-signer. 

3 ‘‘(B) DEATH, DISABILITY, OR BANK4 RUPTCY OF BORROWER.—If a private education 

5 loan includes a co-signer, a private educational 

6 lender may not take any adverse action (includ7 ing declaring a default, accelerating any loan 

8 obligation, increasing the interest rate, or alter9 ing any obligations under the private education 

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

11 against the co-signer based on the death, dis12 ability, or inability to engage in any substantial 

13 gainful activity, or bankruptcy of the borrower. 

14 ‘‘(3) CO-SIGNER RELEASE.— 

15 ‘‘(A) REQUIREMENTS FOR AUTOMATIC RE16 LEASE OF CO-SIGNER.— 

17 ‘‘(i) CRITERIA ESTABLISHED BY THE

18 BUREAU.—Not later than 180 days after 

19 the date of enactment of this subsection, 

20 the Bureau shall establish criteria, which if 

21 met by the borrower of a private education 

22 loan, the private educational lender or 

23 servicer of the private education loan shall 

24 promptly release any co-signer from the 

25 obligations of the co-signer under the loan 


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1 without requiring any action on behalf of 

2 the borrower. 

3 ‘‘(ii) CRITERIA ESTABLISHED BY

4 LENDER.—A private educational lender 

5 may establish criteria for automatic release 

6 that are different from the criteria de7 scribed in clause (i) if the criteria estab8 lished by the lender are not more restric9 tive with respect to the borrower or any co10 signer of the private education loan than 

11 the criteria established under clause (i). 

12 ‘‘(B) DISCLOSURE OF CRITERIA FOR CO13 SIGNER RELEASE.—A private educational lend14 er shall— 

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

16 a private education loan the criteria under 

17 which a co-signer may be released from the 

18 obligation of the co-signer under a private 

19 education loan under this subparagraph; 

20 and 

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

22 co-signer at the time the private education 

23 loan is consummated, clearly and conspicu24 ously, the criteria under which a co-signer 


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1 may be released from the obligation of the 

2 co-signer under a private education loan. 

3 ‘‘(C) MODIFICATIONS TO CRITERIA.—The 

4 private educational lender, or servicer of a pri5 vate education loan, as applicable, may not 

6 modify the criteria under which a co-signer may 

7 be released from the obligation of the co-signer 

8 under a private education loan if the modifica9 tion would be adverse to the borrower without 

10 the consent of the borrower and applicable co11 signer. 

12 ‘‘(D) NOTIFICATION ON RELEASE.—A pri13 vate educational lender, or servicer, as applica14 ble, shall promptly notify the borrower and any 

15 co-signers for a private education loan if a co16 signer is released from the obligations of the co17 signer under the private education loan under 

18 this subparagraph. 

19 ‘‘(E) MODIFICATION OF EVALUATION OF

20 CREDITWORTHINESS, CREDIT STANDING, OR

21 CREDIT CAPACITY.—In determining whether the 

22 criteria for a co-signer release are met, a pri23 vate educational lender or servicer of a private 

24 education loan, as applicable, may not evaluate 

25 the creditworthiness, credit standing, or credit 


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1 capacity of the borrower or a co-signer of the 

2 private education loan using a standard that 

3 would be more adverse to the borrower or co4 signer, as applicable, than the standard the pri5 vate educational lender used to evaluate the 

6 creditworthiness, credit standing, or credit ca7 pacity of the borrower or co-signer on the date 

8 on which the private education loan was con9 summated. 

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

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

12 private educational lender who extends a private 

13 education loan, the lender shall provide the borrower 

14 an option to designate an individual to have the 

15 legal authority to act on behalf of the borrower with 

16 respect to the private education loan in the event of 

17 the borrower’s death, disability, or inability to en18 gage in any substantial gainful activity. 

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

20 educational lender who extends a private education 

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

22 any co-signer, receives comprehensive information on 

23 the terms and conditions of the loan and of the re24 sponsibilities the borrower has with respect to such 

25 loan, including the information described under subVerDate Sep 11 2014 04:28 Sep 12, 2015 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3474.IH H3474

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1 paragraphs (H), (I), (K), (L), (M), and (N) of sec2 tion 485(l)(2) of the Higher Education Act of 1965 

3 (20 U.S.C. 1092(l)(2)). 

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

5 a model form under section 105 for describing a co6 signer’s obligation for purposes of paragraph (1). 

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

8 INABILITY TO ENGAGE IN ANY SUBSTANTIAL GAIN9 FUL ACTIVITY.—For the purposes of this subsection 

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

11 ‘death, disability, or inability to engage in any sub12 stantial gainful activity’— 

13 ‘‘(A) means any condition described in sec14 tion 437(a) of the Higher Education Act of 

15 1965 (20 U.S.C. 1087(a)); and 

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

17 such a manner as to conform with the regula18 tions prescribed by the Secretary of Education 

19 under section 437(a) of such Act (20 U.S.C. 

20 1087(a)) to the fullest extent practicable, in21 cluding safeguards to prevent fraud and 

22 abuse.’’. 

23 (b) DEFINITIONS.—Subsection (a) of section 140 of 

24 the Truth in Lending Act (15 U.S.C. 1650(a)) is amend25 ed— 


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1 (1) by redesignating paragraphs (1) through 

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

3 (2) by inserting before paragraph (2) (as redes4 ignated by paragraph (1)) the following: 

5 ‘‘(1) the term ‘co-signer’— 

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

7 the obligation of another without compensation, 

8 regardless of how designated in the contract or 

9 instrument; 

10 ‘‘(B) includes any person whose signature 

11 is requested as condition to grant credit or to 

12 forbear on collection; and 

13 ‘‘(C) does not include a spouse of an indi14 vidual referred to in subparagraph (A) whose 

15 signature is needed to perfect the security inter16 est in the loan;’’. 

17 (c) RULEMAKING.—Not later than the end of the 1- 

18 year period following the date of the enactment of this 

19 Act, the Bureau of Consumer Financial Protection shall 

20 issue regulations to carry out section 140(g) of the Truth 

21 in Lending Act. 

22 SEC. 3. FEDERAL STUDENT LOANS. 

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

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

25 1092(l)(2)) is amended by adding at the end the following: 


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1 ‘‘(L) Information on the conditions re2 quired to discharge the loan due to the death, 

3 disability, or inability to engage in any substan4 tial gainful activity of the borrower in accord5 ance with section 437(a). 

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

7 forbearance, or forgiveness opportunities avail8 able to the borrower, or co-signer, in the event 

9 of either individual’s death, disability, or inabil10 ity to engage in any substantial gainful activity. 

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

12 or inability to engage in any substantial gainful 

13 activity of the borrower would have on the obli14 gations of the borrower and any co-signer of the 

15 loan.’’. 

16 (b) DESIGNATION OF INDIVIDUAL TO ACT ON BE17 HALF OF THE BORROWER.—Section 484 of the Higher 

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

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

20 and inserting the following: 

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

22 original financial aid application process, a certifi23 cation, which need not be notarized, but which— 

24 ‘‘(A) shall include— 


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1 ‘‘(i) a statement of educational pur2 pose stating that the money attributable to 

3 such grant, loan, or loan guarantee will be 

4 used solely for expenses related to attend5 ance or continued attendance at such insti6 tution; and 

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

8 number; and 

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

10 student of an individual who shall have the 

11 legal authority to act on behalf of the student 

12 with respect to any loan to the student under 

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

14 disability, or inability to engage in any substan15 tial gainful activity;’’; and 

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

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

18 BEHALF OF THE BORROWER IN CLEAR AND CON19 SPICUOUS MANNER.—The option for a student to make 

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

21 provided in a clear and conspicuous manner to the stu22 dent.’’. 

23 SEC. 4. RULE OF CONSTRUCTION. 

24 Nothing in this Act, or an amendment made by this 

25 Act, shall be construed to adversely affect the eligibility 


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

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

3 Act of 1965 (42 U.S.C. 2751 et seq. and 20 U.S.C. 1088 

4 et seq.) based on a designation, or lack thereof, under sec5 tion 484(a)(4)(B) of that Act, as added by section 3(b) 

6 of this Act. 

Æ 


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