I 

114TH CONGRESS 

2D SESSION H. R. 6446 

To amend the Truth in Lending Act to provide private education loan forgiveness for certain borrowers, to require disclosures related to private education loan default rates, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 6, 2016 

Mr. PALLONE (for himself, Mr. COHEN, Ms. MOORE, Mr. PAYNE, and Mrs. 

WATSON COLEMAN) introduced the following bill; which was referred to 

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

on Ways and Means, 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 provide private 

education loan forgiveness for certain borrowers, to require disclosures related to private education loan default 

rates, 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 ‘‘Student Borrower 

5 Higher Education Lending Protection Act of 2016’’ or the 

6 ‘‘Student Borrower HELP Act of 2016’’. 


smartinez on DSK3GLQ082PROD with BILLS
2 

•HR 6446 IH

1 SEC. 2. PRIVATE EDUCATION LOAN FORGIVENESS FOR DE2 CEASED OR DISABLED STUDENTS. 

3 (a) AMENDMENTS TO TILA.—Section 140 of the 

4 Truth in Lending Act (15 U.S.C. 1650) is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(g) DEFERMENT OR DISCHARGE OF PRIVATE EDU7 CATION LOAN.— 

8 ‘‘(1) TEMPORARY DISABILITY.—A student bor9 rower of a private education loan shall not be obli10 gated to make payments on the loan, and interest 

11 shall not accrue on the loan, during the period in 

12 which the student borrower is determined to be 

13 under a disability (as defined in section 216(i) or 

14 223(d) of the Social Security Act (42 U.S.C. 

15 416(i))). 

16 ‘‘(2) DEATH OR TOTAL AND PERMANENT DIS17 ABILITY.—If a student borrower of a private edu18 cation loan dies or becomes totally or permanently 

19 disabled (as determined by the Secretary of Edu20 cation in accordance with section 437(a)(1) of the 

21 Higher Education Act of 1965 (20 U.S.C. 

22 1087(a)(1))), any outstanding balance on the loan 

23 shall be deemed to be discharged, and the student 

24 borrower, any cosignor on the loan, or the estate of 

25 either the student borrower or the cosignor shall not 


smartinez on DSK3GLQ082PROD with BILLS
3 

•HR 6446 IH

1 be obligated to make any additional payments on the 

2 loan.’’. 

3 (b) EXCLUSION FROM GROSS INCOME.—Section 

4 108(f)(1) of the Internal Revenue Code of 1986 is amend5 ed— 

6 (1) by striking the period at the end and insert7 ing ‘‘, or’’, 

8 (2) by striking ‘‘if such discharge was pursuant 

9 to a provision’’ and inserting the following: ‘‘if such 

10 discharge was pursuant to— 

11 ‘‘(A) a provision’’, and 

12 (3) by adding at the end the following: 

13 ‘‘(B) section 140(g)(2) of the Truth in 

14 Lending Act.’’. 

15 SEC. 3. REQUIRED DISCLOSURES OF DEFAULT RATES FOR 

16 PRIVATE EDUCATION LOANS. 

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

18 U.S.C. 1638(e)) is amended— 

19 (1) in paragraph (1)— 

20 (A) in subparagraph (Q), by striking 

21 ‘‘and’’ at the end; 

22 (B) by redesignating subparagraph (R) as 

23 subparagraph (S); and 

24 (C) by inserting after subparagraph (Q) 

25 the following new subparagraph: 


smartinez on DSK3GLQ082PROD with BILLS
4 

•HR 6446 IH

1 ‘‘(R) the number of private education loans 

2 offered by the private educational lender and 

3 the number and rate of default on such loans 

4 made by the lender; and’’; 

5 (2) in paragraph (2)— 

6 (A) in subparagraph (O), by striking 

7 ‘‘and’’ at the end; 

8 (B) by redesignating subparagraph (P) as 

9 subparagraph (Q); and 

10 (C) by inserting after subparagraph (O) 

11 the following new subparagraph: 

12 ‘‘(P) the number of private education loans 

13 offered by the private educational lender and 

14 the number and rate of default on such loans 

15 made by the lender; and’’; and 

16 (3) in paragraph (4), by striking ‘‘(M) through 

17 (P)’’ and inserting ‘‘(M) through (Q)’’. 

18 SEC. 4. EFFECTIVE DATE; APPLICABILITY. 

19 This Act and the amendments made by this Act— 

20 (1) shall take effect on the date that is 1 year 

21 after the date of the enactment of this Act; and 

22 (2) shall only apply to private education loans 

23 (as defined in section 140(a) of the Truth in LendVerDate Sep 11 2014 04:22 Dec 07, 2016 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6446.IH H6446

smartinez on DSK3GLQ082PROD with BILLS
5 

•HR 6446 IH

1 ing Act (15 U.S.C. 1650(a))) entered into on or 

2 after the effective date described in paragraph (1). 

Æ 


smartinez on DSK3GLQ082PROD with BILLS