I 

116TH CONGRESS 

1ST SESSION H. R. 3027 

To establish student loan borrowers’ rights to basic consumer protections, 

reasonable and flexible repayment options, access to earned credentials, 

and effective loan cancellation in exchange for public service, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2019 

Ms. WILSON of Florida introduced the following bill; which was referred to 

the Committee on Education and Labor, and in addition to the Committees on Ways and Means, the Judiciary, and Oversight and Reform, 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 student loan borrowers’ rights to basic consumer 

protections, reasonable and flexible repayment options, 

access to earned credentials, and effective loan cancellation in exchange for public service, 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 Loan Bor5 rowers’ Bill of Rights Act of 2019’’. 


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1 TITLE I—BORROWERS’ RIGHT TO 

2 BASIC CONSUMER PROTEC3 TIONS 

4 SEC. 101. DISCHARGEABILITY OF STUDENT LOANS IN 

5 BANKRUPTCY CASES. 

6 Section 523(a) of title 11 of the United States Code 

7 is amended by striking paragraph (8). 

8 SEC. 102. REINSTATEMENT OF THE 6-YEAR STATUTE OF 

9 LIMITATIONS FOR STUDENT LOANS. 

10 Subsection (a) of section 484A of the Higher Edu11 cation Act of 1965 (20 U.S.C. 1091a(a)) is amended to 

12 read as follows: 

13 ‘‘(a) STATUTE OF LIMITATIONS.—Notwithstanding 

14 any Federal or State statutory, regulatory, or administra15 tive limitation on the period within which debts may be 

16 enforced— 

17 ‘‘(1) an institution that receives funds under 

18 this title may file a suit or initiate or take another 

19 action for collection of a refund due from a student 

20 on a grant made, or work assistance awarded, under 

21 this title, during the 6-year period beginning on the 

22 day after the refund first became due (exclusive of 

23 the period during which the State statute of limita24 tions otherwise applicable to a suit under this para25 graph would be tolled under State law); 


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1 ‘‘(2) a guaranty agency that has an agreement 

2 with the Secretary under section 428(c) may file a 

3 suit or initiate or take another action for collection 

4 of the amount due from a borrower on a loan made 

5 under part B during the 6-year period beginning on 

6 the day after such guaranty agency reimburses the 

7 previous holder of the loan for its loss on account of 

8 the default of the borrower (exclusive of the period 

9 during which the State statute of limitations other10 wise applicable to a suit under this paragraph would 

11 be tolled under State law); 

12 ‘‘(3) an institution that has an agreement with 

13 the Secretary pursuant to section 487 may file a suit 

14 or initiate or take another action for collection of the 

15 amount due from a borrower on a loan made under 

16 part D or E after the default of the borrower on 

17 such loan during the 6-year period beginning on the 

18 day after the date of the default of the borrower 

19 with respect to such amount (exclusive of the period 

20 during which the State statute of limitations other21 wise applicable to a suit under this paragraph would 

22 be tolled under State law); or 

23 ‘‘(4) the Secretary, the Attorney General, or the 

24 administrative head of another Federal agency, as 

25 the case may be, may file a suit or initiate or take 


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1 another action for collection of a refund due from a 

2 student on a grant made under this title, or for the 

3 repayment of the amount due from a borrower on a 

4 loan made under this title that has been assigned to 

5 the Secretary under this title, during the 6-year pe6 riod beginning on the day after the refund or the 

7 amount first became due.’’. 

8 SEC. 103. PROHIBITION OF COLLECTION OF STUDENT 

9 LOANS THROUGH CERTAIN OFFSETS OR 

10 THROUGH WAGE GARNISHMENT. 

11 (a) PROHIBITION ON OFFSET OF SOCIAL SECURITY

12 BENEFITS.—Section 3716(c)(3)(A) of title 31, United 

13 States Code, is amended— 

14 (1) in clause (i), by striking ‘‘except as provided 

15 in clause (ii)’’ and inserting ‘‘except as provided in 

16 clauses (ii) and (iii)’’; and 

17 (2) by adding at the end the following new 

18 clause: 

19 ‘‘(iii) Notwithstanding clause (i), any payments due 

20 to an individual under Federal benefits programs cited 

21 under clause (i) shall not be subject to offset under this 

22 subsection if the offset is for payments certified by the 

23 Department of Education under a program administered 

24 by the Secretary of Education under title IV of the Higher 

25 Education Act of 1965 (20 U.S.C. 1070 et seq.).’’. 


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1 (b) PROHIBITION ON OFFSET OF TAX REFUND.— 

2 Section 3720A(a) of title 31, United States Code, is 

3 amended— 

4 (1) by striking ‘‘Any Federal agency’’ and in5 serting ‘‘(1) Except as provided in paragraph (2), 

6 any Federal agency’’; and 

7 (2) by adding at the end the following new 

8 paragraph: 

9 ‘‘(2) Any past-due legally enforceable debt owed by 

10 an individual to the Department of Education under a 

11 program administered by the Secretary of Education 

12 under title IV of the Higher Education Act of 1965 (20 

13 U.S.C. 1070 et seq.) shall not be subject to notification 

14 under paragraph (1), and any refund of Federal taxes 

15 paid by the individual shall not be subject to reduction 

16 under subsection (c) for such debt.’’. 

17 (c) PROHIBITION ON WAGE GARNISHMENT.—Section 

18 3720D(a) of title 31, United States Code, is amended— 

19 (1) by striking ‘‘Notwithstanding’’ and insert20 ing: ‘‘(1) Except as provided in paragraph (2) and 

21 notwithstanding’’; and 

22 (2) by adding at the end the following new 

23 paragraph: 

24 ‘‘(2) Any delinquent nontax debt owed by an indi25 vidual to the Department of Education under a program 


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1 administered by the Secretary of Education under title IV 

2 of the Higher Education Act of 1965 (20 U.S.C. 1070 

3 et seq.) shall not be subject to collection under this section 

4 through garnishment of disposable pay of the individual.’’. 

5 TITLE II—BORROWER’S RIGHT 

6 TO REASONABLE AND FLEXI7 BLE REPAYMENT OPTIONS 

8 SEC. 201. EXCLUSION FROM GROSS INCOME FOR DIS9 CHARGE OF STUDENT LOAN INDEBTEDNESS. 

10 (a) IN GENERAL.—Section 108(f)(1) of the Internal 

11 Revenue Code of 1986 is amended by striking ‘‘if such 

12 discharge’’ and all that follows and inserting a period. 

13 (b) STUDENT LOANS.—Section 108(f)(2) of such 

14 Code is amended by striking ‘‘made by—’’ and all that 

15 follows and inserting the following: ‘‘. Such term includes 

16 indebtedness used to refinance indebtedness which quali17 fies as a student loan under the preceding sentence.’’. 

18 (c) CONFORMING AMENDMENTS.—Section 108(f) of 

19 such Code is amended by striking paragraphs (3) and (4). 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to discharges of indebtedness after 

22 the date of the enactment of this Act. 


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1 SEC. 202. 529 PLAN DISTRIBUTION FOR STUDENT LOAN 

2 PAYMENTS. 

3 (a) IN GENERAL.—Section 529(e)(3)(A) is amended 

4 by striking clause (iii) and inserting the following new 

5 clause: 

6 ‘‘(iii) interest or principal paid with 

7 respect to a qualified education loan (as 

8 defined in section 221) with respect to a 

9 designated beneficiary.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 529(e)(3)(A) of such Code is 

12 amended by striking the second sentence. 

13 (2) Section 72(t)(7)(A) of such Code is amend14 ed by inserting ‘‘, determined without regard to sub15 paragraph (A)(iii) thereof’’ after ‘‘section 

16 529(e)(3)’’. 

17 (3) Section 530(b)(2)(A)(i) of such Code is 

18 amended by inserting ‘‘, determined without regard 

19 to subparagraph (A)(iii) thereof’’ after ‘‘section 

20 529(e)(3)’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to distributions made after the 

23 date of the enactment of this Act. 


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1 SEC. 203. INCLUSION OF PARENT PLUS LOANS IN REPAY2 MENT PROGRAMS. 

3 (a) INCOME CONTINGENT REPAYMENT PLAN.—Sec4 tion 455(d)(1)(D) of the Higher Education Act of 1965 

5 (20 U.S.C. 1087e(d)(1)(D)) is amended by striking ‘‘, ex6 cept that the plan described in this subparagraph shall 

7 not be available to the borrower of a Federal Direct PLUS 

8 loan made on behalf of a dependent student;’’. 

9 (b) INCOME-BASED REPAYMENT.— 

10 (1) PART B LOANS.— 

11 (A) REPAYMENT PLANS.—Section 

12 428(b)(9)(A)(v) of the Higher Education Act of 

13 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended 

14 by striking ‘‘, except that the plan described in 

15 this clause shall not be available to a borrower 

16 for a loan under section 428B made on behalf 

17 of a dependent student or for a consolidation 

18 loan under section 428C, if the proceeds of such 

19 loan were used to discharge the liability of a 

20 loan under section 428B made on behalf of a 

21 dependent student’’. 

22 (B) CONSOLIDATION LOANS.—Section 

23 428C(c)(3) of such Act (20 U.S.C. 1078– 

24 3(c)(3)) is amended— 

25 (i) in subparagraph (A), by inserting 

26 ‘‘and’’ at the end; 


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1 (ii) in subparagraph (B), by striking 

2 ‘‘and’’ at the end and inserting a period; 

3 and 

4 (iii) by striking subparagraph (C). 

5 (2) PART D LOANS.—Section 455(d)(1)(E) of 

6 such Act (20 U.S.C. 1087e(d)(1)(D)) is amended by 

7 striking ‘‘, except that the plan described in this 

8 subparagraph shall not be available to the borrower 

9 of a Federal Direct PLUS Loan made on behalf of 

10 a dependent student or a Federal Direct Consolida11 tion Loan, if the proceeds of such loan were used to 

12 discharge the liability on such Federal Direct PLUS 

13 Loan or a loan under section 428B made on behalf 

14 of a dependent student’’. 

15 (3) IBR.—Section 493C of such Act (20 U.S.C. 

16 1098e) is amended— 

17 (A) in subsection (a)— 

18 (i) by striking ‘‘this section’’ and all 

19 that follows through ‘‘hardship’’ and in20 serting ‘‘In this section, the term ‘partial 

21 financial hardship’ ’’; and 

22 (ii) by striking, ‘‘(other than an ex23 cepted PLUS loan or excepted consolida24 tion loan)’’; 

25 (B) in subsection (b)— 


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1 (i) in paragraph (1), by striking 

2 ‘‘(other than an excepted PLUS loan or 

3 excepted consolidation loan)’’; 

4 (ii) in paragraph (6)(A), by striking 

5 ‘‘(other than an excepted PLUS loan or 

6 excepted consolidation loan)’’; and 

7 (iii) in paragraph (7), by striking 

8 ‘‘other than a loan under section 428B or 

9 a Federal Direct PLUS Loan’’; and 

10 (C) in subsection (c), by striking ‘‘(other 

11 than an excepted PLUS loan or excepted con12 solidation loan),’’. 

13 (c) LOAN FORGIVENESS FOR SERVICE IN AREAS OF

14 NATIONAL NEED.—Section 428K(a)(2) of such Act (20 

15 U.S.C. 1078–11(a)(2)) is amended— 

16 (1) in subparagraph (A), by striking ‘‘(other 

17 than an excepted PLUS loan or an excepted consoli18 dation loan (as such terms are defined in section 

19 493C(a)))’’; and 

20 (2) in subparagraph (B), by striking ‘‘(other 

21 than an excepted PLUS loan or an excepted consoli22 dation loan)’’. 

23 (d) OTHER REPAYMENT PLANS.—Any plan for the 

24 repayment of loans made under title IV of the Higher 

25 Education Act of 1965 (20 U.S.C. 1070 et seq.), which 


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1 is finalized by the Secretary of Education on or after the 

2 date of enactment of this Act, shall include the repayment 

3 of a loan under section 428B of the Higher Education 

4 Act of 1965, or a Federal Direct PLUS Loan under part 

5 D of title IV of such Act, that is made, insured, or guaran6 teed on behalf of a dependent student. 

7 SEC. 204. DETERMINATION OF ADVERSE CREDIT HISTORY. 

8 Section 428B(a) of the Higher Education Act of 

9 1965 (20 U.S.C. 1078–2(a)) is amended in paragraph 

10 (1)(A), by striking ‘‘regulations promulgated by the Sec11 retary’’ and inserting ‘‘section 685.200(c) of title 34, Code 

12 of Federal Regulations (as in effect on September 30, 

13 2011)’’. 

14 TITLE III—BORROWERS’ RIGHT 

15 TO A MEANINGFUL DEGREE 

16 SEC. 301. PROHIBITION ON SUSPENSIONS OF PROFES17 SIONAL LICENSES FOR LOAN DEFAULT. 

18 No evidence of an individual’s default on the repay19 ment of a loan made, insured, or guaranteed under title 

20 IV of the Higher Education Act of 1965 (20 U.S.C. 1070 

21 et seq.) may be admitted into evidence in a Federal or 

22 State proceeding involving the individual’s professional or 

23 vocational license. 


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1 SEC. 302. PROHIBITION ON LOSS OF ACCESS TO TRAN2 SCRIPTS FOR LOAN DEFAULT. 

3 Section 487(a) of the Higher Education Act of 1965 

4 (20 U.S.C. 1094(a)) (as amended by section 301) is fur5 ther amended by adding at the end the following new para6 graph: 

7 ‘‘(30)(A) The institution will not prohibit a stu8 dent from accessing the student’s transcripts, degree 

9 scrolls, or other certifications of coursework or edu10 cational attainments at the institution because the 

11 student is in default on the repayment of a loan 

12 made, insured, or guaranteed under this title. 

13 ‘‘(B) For purposes of this paragraph, the term 

14 ‘student’ includes former students.’’. 

15 TITLE IV—RIGHT TO EFFECTIVE 

16 LOAN CANCELLATION FOR 

17 BORROWERS ENGAGED IN 

18 PUBLIC SERVICE CAREERS 

19 SEC. 401. EXTENSION OF LOAN CANCELLATION FOR BOR20 ROWERS EMPLOYED IN PUBLIC SERVICE 

21 JOBS FOR 5 YEARS. 

22 Section 455(m) of the Higher Education Act of 1965 

23 (20 U.S.C. 1087e) is amended by adding at the end the 

24 following new paragraph: 

25 ‘‘(5) LOAN CANCELLATION AFTER 5 YEARS.— 

26 The Secretary shall also cancel 50 percent of the 


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1 balance of interest and principal due on any eligible 

2 Federal Direct Loan not in default for any borrower 

3 employed in a public service job for 5 years during 

4 the repayment of such loans— 

5 ‘‘(A) by applying paragraph (1)(A)— 

6 ‘‘(i) by substituting ‘60’ for ‘120’ each 

7 place it appears; and 

8 ‘‘(ii) by substituting ‘October 1, 2007’ 

9 for ‘October 1, 2019’; and 

10 ‘‘(B) by applying paragraph (2), by sub11 stituting ‘50 percent of the balance’ with ‘the 

12 balance’.’’. 

Æ 


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