II 

114TH CONGRESS 

1ST SESSION S. 1958 

IN THE SENATE OF THE UNITED STATES 

AUGUST 5, 2015 

Mr. MENENDEZ (for himself, Mr. BOOKER, Mrs. GILLIBRAND, Mr. FRANKEN, 

and Ms. WARREN) 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: 

8 (1) According to the Bureau of Consumer Fi9 nancial Protection (hereafter referred to as the 

10 ‘‘CFPB’’) Student Loan Ombudsman: 


emcdonald on DSK67QTVN1PROD with BILLS
2 

•S 1958 IH

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

2 private student loan complaints and approxi3 mately 1,100 debt collection complaints related 

4 to student loans between October 1, 2014, and 

5 March 31, 2015.’’. 

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

7 about discharge or alternative arrangements in 

8 the case of death of the primary borrower is not 

9 readily available and that decisions are made on 

10 a case-by-case basis, giving co-signers little un11 derstanding of how the process works, or if they 

12 will be successful.’’. 

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

14 the CFPB resemble many of the same issues 

15 experienced by mortgage borrowers, such as im16 proper application of payments, untimeliness in 

17 error resolution, and inability to contact appro18 priate personnel in times of hardship.’’. 

19 (D) ‘‘The difference between federal and 

20 private student loans in periods of disability 

21 was not well-understood.’’. 

22 (2) An estimated 1,700,000 people sustain a 

23 traumatic brain injury each year, with older adoles24 cents aged 15 to 19 years old more likely to sustain 

25 a traumatic brain injury than other age groups. 


emcdonald on DSK67QTVN1PROD with BILLS
3 

•S 1958 IH

1 (3) It has been estimated that the annual inci2 dence of spinal cord injury, not including those who 

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

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

5 approximately 12,000 new cases each year. These in6 juries can lead to permanent disability or loss of 

7 movement and can prohibit the victim from engaging 

8 in any substantial gainful activity. 

9 (4) According to the CFPB, more than 90 per10 cent of new private student loans are co-signed. 

11 (5) According to the CFPB, private student 

12 loan companies provide co-signer release to less than 

13 1 percent of eligible borrowers. 

14 SEC. 2. ADDITIONAL STUDENT LOAN PROTECTIONS. 

15 (a) IN GENERAL.—Section 140 of the Truth in Lend16 ing Act (15 U.S.C. 1650) is amended by adding at the 

17 end the following: 

18 ‘‘(g) ADDITIONAL PROTECTIONS RELATING TO BOR19 ROWER OR CO-SIGNER OF A PRIVATE EDUCATION

20 LOAN.— 

21 ‘‘(1) CLEAR AND CONSPICUOUS DESCRIPTION

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

23 the case of any private educational lender who ex24 tends a private education loan, the lender shall 

25 clearly and conspicuously describe, in writing, the 


emcdonald on DSK67QTVN1PROD with BILLS
4 

•S 1958 IH

1 co-signer’s obligations with respect to the loan, in2 cluding the effect the death, disability, or inability to 

3 engage in any substantial gainful activity of the bor4 rower or any co-signer would have on any such obli5 gation, in language that the Bureau determines 

6 would give a reasonable person a reasonable under7 standing of the obligation being assumed by becom8 ing a co-signer for the loan. 

9 ‘‘(2) PROHIBITION ON AUTOMATIC DEFAULT

10 WITH RESPECT TO A PERFORMING LOAN.— 

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

12 OF CO-SIGNER.—If a private education loan in13 cludes a co-signer, a private educational lender 

14 may not take any adverse action (including de15 claring a default, accelerating any loan obliga16 tion, increasing the interest rate, or altering 

17 any obligations under the private education loan 

18 in a way that is adverse to the borrower) 

19 against the borrower based on the death, dis20 ability, or inability to engage in any substantial 

21 gainful activity or bankruptcy of a co-signer. 

22 ‘‘(B) DEATH, DISABILITY, OR BANK23 RUPTCY OF BORROWER.—If a private education 

24 loan includes a co-signer, a private educational 

25 lender may not take any adverse action (includVerDate Sep 11 2014 00:19 Aug 12, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1958.IS S1958

emcdonald on DSK67QTVN1PROD with BILLS
5 

•S 1958 IH

1 ing declaring a default, accelerating any loan 

2 obligation, increasing the interest rate, or alter3 ing any obligations under the private education 

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

5 against the co-signer based on the death, dis6 ability, or inability to engage in any substantial 

7 gainful activity, or bankruptcy of the borrower. 

8 ‘‘(3) CO-SIGNER RELEASE.— 

9 ‘‘(A) REQUIREMENTS FOR AUTOMATIC RE10 LEASE OF CO-SIGNER.— 

11 ‘‘(i) CRITERIA ESTABLISHED BY THE

12 BUREAU.—Not later than 180 days after 

13 the date of enactment of this subsection, 

14 the Bureau shall establish criteria, which if 

15 met by the borrower of a private education 

16 loan, the private educational lender or 

17 servicer of the private education loan shall 

18 promptly release any co-signer from the 

19 obligations of the co-signer under the loan 

20 without requiring any action on behalf of 

21 the borrower. 

22 ‘‘(ii) CRITERIA ESTABLISHED BY

23 LENDER.—A private educational lender 

24 may establish criteria for automatic release 

25 that are different from the criteria deVerDate Sep 11 2014 00:19 Aug 12, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1958.IS S1958

emcdonald on DSK67QTVN1PROD with BILLS
6 

•S 1958 IH

1 scribed in clause (i) if the criteria estab2 lished by the lender are not more restric3 tive with respect to the borrower or any co4 signer of the private education loan than 

5 the criteria established under clause (i). 

6 ‘‘(B) DISCLOSURE OF CRITERIA FOR CO7 SIGNER RELEASE.—A private educational lend8 er shall— 

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

10 a private education loan the criteria under 

11 which a co-signer may be released from the 

12 obligation of the co-signer under a private 

13 education loan under this subparagraph; 

14 and 

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

16 co-signer at the time the private education 

17 loan is consummated, clearly and conspicu18 ously, the criteria under which a co-signer 

19 may be released from the obligation of the 

20 co-signer under a private education loan. 

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

22 private educational lender, or servicer of a pri23 vate education loan, as applicable, may not 

24 modify the criteria under which a co-signer may 

25 be released from the obligation of the co-signer 


emcdonald on DSK67QTVN1PROD with BILLS
7 

•S 1958 IH

1 under a private education loan if the modifica2 tion would be adverse to the borrower without 

3 the consent of the borrower and applicable co4 signer. 

5 ‘‘(D) NOTIFICATION ON RELEASE.—A pri6 vate educational lender, or servicer, as applica7 ble, shall promptly notify the borrower and any 

8 co-signers for a private education loan if a co9 signer is released from the obligations of the co10 signer under the private education loan under 

11 this subparagraph. 

12 ‘‘(E) MODIFICATION OF EVALUATION OF

13 CREDITWORTHINESS, CREDIT STANDING, OR

14 CREDIT CAPACITY.—In determining whether the 

15 criteria for a co-signer release are met, a pri16 vate educational lender or servicer of a private 

17 education loan, as applicable, may not evaluate 

18 the creditworthiness, credit standing, or credit 

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

20 private education loan using a standard that 

21 would be more adverse to the borrower or co22 signer, as applicable, than the standard the pri23 vate educational lender used to evaluate the 

24 creditworthiness, credit standing, or credit ca25 pacity of the borrower or co-signer on the date 


emcdonald on DSK67QTVN1PROD with BILLS
8 

•S 1958 IH

1 on which the private education loan was con2 summated. 

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

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

5 private educational lender who extends a private 

6 education loan, the lender shall provide the borrower 

7 an option to designate an individual to have the 

8 legal authority to act on behalf of the borrower with 

9 respect to the private education loan in the event of 

10 the borrower’s death, disability, or inability to en11 gage in any substantial gainful activity. 

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

13 educational lender who extends a private education 

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

15 any co-signer, receives comprehensive information on 

16 the terms and conditions of the loan and of the re17 sponsibilities the borrower has with respect to such 

18 loan, including the information described under sub19 paragraphs (H), (I), (K), (L), (M), and (N) of sec20 tion 485(l)(2) of the Higher Education Act of 1965 

21 (20 U.S.C. 1092(l)(2)). 

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

23 a model form under section 105 for describing a co24 signer’s obligation for purposes of paragraph (1). 


emcdonald on DSK67QTVN1PROD with BILLS
9 

•S 1958 IH

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

2 INABILITY TO ENGAGE IN ANY SUBSTANTIAL GAIN3 FUL ACTIVITY.—For the purposes of this subsection 

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

5 ‘death, disability, or inability to engage in any sub6 stantial gainful activity’— 

7 ‘‘(A) means any condition described in sec8 tion 437(a) of the Higher Education Act of 

9 1965 (20 U.S.C. 1087(a)); and 

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

11 such a manner as to conform with the regula12 tions prescribed by the Secretary of Education 

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

14 1087(a)) to the fullest extent practicable, in15 cluding safeguards to prevent fraud and 

16 abuse.’’. 

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

18 the Truth in Lending Act (15 U.S.C. 1650(a)) is amend19 ed— 

20 (1) by redesignating paragraphs (1) through 

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

22 (2) by inserting before paragraph (2) (as redes23 ignated by paragraph (1)) the following: 

24 ‘‘(1) the term ‘co-signer’— 


emcdonald on DSK67QTVN1PROD with BILLS
10 

•S 1958 IH

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

2 the obligation of another without compensation, 

3 regardless of how designated in the contract or 

4 instrument; 

5 ‘‘(B) includes any person whose signature 

6 is requested as condition to grant credit or to 

7 forbear on collection; and 

8 ‘‘(C) does not include a spouse of an indi9 vidual referred to in subparagraph (A) whose 

10 signature is needed to perfect the security inter11 est in the loan;’’. 

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

13 year period following the date of the enactment of this 

14 Act, the Bureau of Consumer Financial Protection shall 

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

16 in Lending Act. 

17 SEC. 3. FEDERAL STUDENT LOANS. 

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

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

20 1092(l)(2)) is amended by adding at the end the following: 

21 ‘‘(L) Information on the conditions re22 quired to discharge the loan due to the death, 

23 disability, or inability to engage in any substan24 tial gainful activity of the borrower in accord25 ance with section 437(a). 


emcdonald on DSK67QTVN1PROD with BILLS
11 

•S 1958 IH

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

2 forbearance, or forgiveness opportunities avail3 able to the borrower, or co-signer, in the event 

4 of either individual’s death, disability, or inabil5 ity to engage in any substantial gainful activity. 

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

7 or inability to engage in any substantial gainful 

8 activity of the borrower would have on the obli9 gations of the borrower and any co-signer of the 

10 loan.’’. 

11 (b) DESIGNATION OF INDIVIDUAL TO ACT ON BE12 HALF OF THE BORROWER.—Section 484 of the Higher 

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

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

15 and inserting the following: 

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

17 original financial aid application process, a certifi18 cation, which need not be notarized, but which— 

19 ‘‘(A) shall include— 

20 ‘‘(i) a statement of educational pur21 pose stating that the money attributable to 

22 such grant, loan, or loan guarantee will be 

23 used solely for expenses related to attend24 ance or continued attendance at such insti25 tution; and 


emcdonald on DSK67QTVN1PROD with BILLS
12 

•S 1958 IH

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

2 number; and 

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

4 student of an individual who shall have the 

5 legal authority to act on behalf of the student 

6 with respect to any loan to the student under 

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

8 disability, or inability to engage in any substan9 tial gainful activity;’’; and 

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

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

12 BEHALF OF THE BORROWER IN CLEAR AND CON13 SPICUOUS MANNER.—The option for a student to make 

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

15 provided in a clear and conspicuous manner to the stu16 dent.’’. 

17 SEC. 4. RULE OF CONSTRUCTION. 

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

19 Act, shall be construed to adversely affect the eligibility 

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

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

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

23 et seq.) based on a designation, or lack thereof, under secVerDate Sep 11 2014 00:19 Aug 12, 2015 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1958.IS S1958

emcdonald on DSK67QTVN1PROD with BILLS
13 

•S 1958 IH

1 tion 484(a)(4)(B) of that Act, as added by section 3(b) 

2 of this Act. 

Æ 


emcdonald on DSK67QTVN1PROD with BILLS