I 

116TH CONGRESS 

1ST SESSION H. R. 3887 

To discharge the qualified loan amounts of each individual, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 23, 2019 

Mr. CLYBURN (for himself, Ms. SCHAKOWSKY, Mr. KHANNA, and Ms. CLARKE

of New York) introduced the following bill; which was referred to the 

Committee on Education and Labor, and in addition to the Committees 

on Ways and Means, and the Judiciary, 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 discharge the qualified loan amounts of each individual, 

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 Debt 

5 Relief Act of 2019’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 


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TITLE I—LOAN DISCHARGE AND FORBEARANCE 

Sec. 101. Loan discharge. 

Sec. 102. Automatic administrative forbearance; halting of wage garnishment. 

Sec. 103. Staying and prohibition on commencement of actions for collection. 

Sec. 104. Ineligibility for Treasury Offset. 

TITLE II—REFINANCING PROGRAMS 

Sec. 201. Refinancing programs. 

TITLE III—DISCHARGEABILITY OF STUDENT LOANS IN 

BANKRUPTCY 

Sec. 301. Dischargeability of student loans in bankruptcy. 

TITLE IV—GENERAL PROVISIONS 

Sec. 401. Report on progress of implementation. 

Sec. 402. Notification to borrowers. 

Sec. 403. Inapplicability of title IV negotiated rulemaking and master calendar 

exception. 

Sec. 404. Definitions. 

1 TITLE I—LOAN DISCHARGE AND 

2 FORBEARANCE 

3 SEC. 101. LOAN DISCHARGE. 

4 (a) IN GENERAL.—Subject to subsection (f), not later 

5 than the date that is 12 months after the date of enact6 ment of this Act, the Secretary of Education shall dis7 charge the qualified loan amount of each individual, with8 out regard to the repayment status of the loan or whether 

9 the loan is in default. 

10 (b) QUALIFIED LOAN AMOUNT.— 

11 (1) IN GENERAL.—The qualified loan amount 

12 of an individual is an amount equal to the lesser 

13 of— 

14 (A) $50,000; and 


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1 (B) the aggregate loan obligation on the el2 igible Federal loans of the taxpayer that is out3 standing on the date of enactment of this Act 

4 or, in the case of such loans issued under sec5 tion 460B of the Higher Education Act of 

6 1965, as added by title II of this Act, on the 

7 date on which such loans are issued under such 

8 section 460B. 

9 (2) LIMITATION BASED ON ADJUSTED GROSS

10 INCOME.—The amount discharged under subsection 

11 (a) with respect to an individual shall be reduced 

12 (but not below zero) by $1 for each $3 (or fraction 

13 thereof) by which the taxpayer’s adjusted gross in14 come exceeds $100,000 (twice such amount in the 

15 case of a joint return) for the most recent taxable 

16 year ending before the date of the enactment of this 

17 Act. 

18 (c) METHOD OF LOAN DISCHARGE.— 

19 (1) IN GENERAL.—To provide the loan dis20 charge required under subsection (a), the Secretary 

21 is authorized to carry out a program— 

22 (A) through the holder of the loan, to as23 sume the obligation to repay the qualified loan 

24 amount for a loan made, insured, or guaranteed 


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1 under part B of title IV of the Higher Edu2 cation Act of 1965 (20 U.S.C. 1071 et seq.); 

3 (B) to cancel the qualified loan amount for 

4 a loan made under part D of title IV of the 

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

6 1087a et seq.), or assigned, referred, or trans7 ferred to, or purchased by, the Secretary under 

8 such title IV (20 U.S.C. 1070 et seq.), includ9 ing a Federal Direct Stafford Loan issued 

10 under section 460B of the Higher Education 

11 Act of 1965, as added by title II of this Act; 

12 and 

13 (C) through the institution of higher edu14 cation that made the loan from its student loan 

15 fund established under part E of such title (20 

16 U.S.C. 1087aa et seq.), to assume the obliga17 tion to repay the qualified loan amount for such 

18 loan. 

19 (2) ORDER OF LOAN DISCHARGE.—With re20 spect to an individual with at least 2 eligible Federal 

21 loans, the Secretary shall discharge the loans of the 

22 individual as follows (except as otherwise indicated 

23 by the individual): 

24 (A) In the case in which the individual has 

25 loans with different rates of interest, the loans 


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1 should be discharged in descending order by 

2 rate of interest. 

3 (B) In the case in which the individual has 

4 loans with the same rates of interest, the loans 

5 should be discharged in descending order by 

6 amount of outstanding principal. 

7 (d) EXCLUSION FROM TAXABLE INCOME.—For pur8 poses of the Internal Revenue Code of 1986, in the case 

9 of an individual, gross income does not include any 

10 amount which (but for this subsection) would be includible 

11 in gross income by reason of the discharge (in whole or 

12 in part) of any loan if such discharge was pursuant to 

13 this title. 

14 (e) TAXPAYER INFORMATION.— 

15 (1) IN GENERAL.—The Secretary of the Treas16 ury may, upon written request from the Secretary of 

17 Education, disclose to officers and employees of the 

18 Department of Education return information with 

19 respect to a taxpayer who has received eligible Fed20 eral loans that are outstanding on the date described 

21 in subsection (b)(1)(B). Such return information 

22 shall be limited to— 

23 (A) taxpayer identity information with re24 spect to such taxpayer; 

25 (B) the filing status of such taxpayer; and 


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1 (C) the adjusted gross income of such tax2 payer. 

3 (2) RESTRICTION ON USE OF DISCLOSED IN4 FORMATION.—Return information disclosed under 

5 paragraph (1) may be used by officers and employ6 ees of the Department of Education only for the 

7 purposes of, and to the extent necessary in, estab8 lishing the appropriate qualified loan amount of a 

9 taxpayer. 

10 (f) LONG-TERM SETTLE AND COMPROMISE DIS11 CHARGE AUTHORITY.—Not later than the date that is 24 

12 months after the date of enactment of this Act, the Sec13 retary of Education may use the authority under sections 

14 432(a)(6) and 468(2) of the Higher Education Act of 

15 1965 (20 U.S.C. 1082(a)(6); 1087hh(2)) to discharge 

16 loans under this section beyond the period described in 

17 subsection (a) for— 

18 (1) an individual who, through an appeals proc19 ess established by the Secretary, successfully appeals 

20 a loan discharge determination by the Secretary 

21 under this section; 

22 (2) an individual who, due to special cir23 cumstances, misses a deadline established by the 

24 Secretary in the administration of loan discharges 

25 under this section; or 


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1 (3) an individual (or a group of individuals) 

2 who the Secretary determines should have received a 

3 loan discharge or a discharge amount that is dif4 ferent from the amount of loan discharge received 

5 under this section, except that a loan discharge 

6 amount received under this subsection may not ex7 ceed the qualified loan amount determined for the 

8 individual (or the group of individuals) under sub9 section (b). 

10 (g) PRIVATE STUDENT LOAN DISCHARGE.—Not 

11 later than the date that is 3 months after the date of en12 actment of this Act, the Secretary of Education, in coordi13 nation with the Secretary of the Treasury and the Director 

14 of the Bureau of Consumer Financial Protection, shall un15 dertake a campaign to alert borrowers of private education 

16 loans— 

17 (1) that such borrowers may be eligible to refi18 nance such private loans as Federal Direct Stafford 

19 Loans under section 460B of the Higher Education 

20 Act of 1965, as added by title II of this Act; and 

21 (2) such Federal Direct Stafford Loans may be 

22 eligible for loan discharge under this section. 

23 (h) CREDIT REPORTING.—In the case of a borrower 

24 of an eligible Federal loan that was in default prior to 

25 being discharged under this section and on which, as a 


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1 result of such loan discharge, there is no outstanding bal2 ance of principal or interest, the Secretary, guaranty agen3 cy or other holder of the loan shall request any consumer 

4 reporting agency to which the Secretary, guaranty agency 

5 or holder, as applicable, reported the default of the loan, 

6 to remove the record of the default from the borrower’s 

7 credit history. 

8 (i) MEMBERS OF CONGRESS.—In this section, the 

9 terms ‘‘individual’’ and ‘‘taxpayer’’ do not include a Mem10 ber of Congress. 

11 SEC. 102. AUTOMATIC ADMINISTRATIVE FORBEARANCE; 

12 HALTING OF WAGE GARNISHMENT. 

13 During the period beginning on the date of enactment 

14 of this Act and ending on the date that is 12 months after 

15 such date of enactment, the Secretary of Education— 

16 (1) shall place each borrower of an eligible Fed17 eral loan with an outstanding balance, without any 

18 further action required by the borrower (except that 

19 the borrower may opt-out of this section), on an ad20 ministrative forbearance during which periodic in21 stallments of principal need not be paid, and interest 

22 shall not accrue, on such loan; and 

23 (2) may not issue an order for wage garnish24 ment or withholding under section 488A of the 

25 Higher Education Act of 1965 (20 U.S.C. 1095a) or 


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1 section 3720D of title 31, United States Code, ini2 tiate proceedings to collect debt through deductions 

3 from pay under such section 488A or 3720D, or en4 force or otherwise require compliance with a wage 

5 garnishment or withholding order issued under such 

6 section 488A or 3720D before the date of enactment 

7 of this Act (which shall include staying any related 

8 proceedings). 

9 SEC. 103. STAYING AND PROHIBITION ON COMMENCEMENT 

10 OF ACTIONS FOR COLLECTION. 

11 Until 12 months after the date of enactment of this 

12 Act, no eligible Federal loan may be referred to the Attor13 ney General for any action seeking collection of any 

14 amount owed on that loan and any action pending as of 

15 the date of enactment of this Act shall be stayed. 

16 SEC. 104. INELIGIBILITY FOR TREASURY OFFSET. 

17 Until 12 months after the date of enactment of this 

18 Act, no claim pertaining to an eligible Federal loan may 

19 be certified under section 3716(c)(1) of title 31, United 

20 States Code. 


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1 TITLE II—REFINANCING 

2 PROGRAMS 

3 SEC. 201. REFINANCING PROGRAMS. 

4 (a) PROGRAM AUTHORITY.—Section 451(a) of the 

5 Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 

6 amended— 

7 (1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 

8 and 

9 (2) by inserting ‘‘; and (3) to make loans under 

10 section 460A and section 460B’’ after ‘‘section 

11 459A’’. 

12 (b) REFINANCING PROGRAM.—Part D of title IV of 

13 the Higher Education Act of 1965 (20 U.S.C. 1087a et 

14 seq.) is amended by adding at the end the following: 

15 ‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 

16 LOANS. 

17 ‘‘(a) IN GENERAL.—Beginning not later than 12 

18 months after the date of enactment of the Student Loan 

19 Debt Relief Act of 2019, the Secretary shall establish a 

20 program under which the Secretary automatically refi21 nances loans made under this part in accordance with the 

22 provisions of this section, in order to lower the rate of 

23 interest on such loans. 

24 ‘‘(b) REFINANCING DIRECT LOANS.— 


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1 ‘‘(1) FEDERAL DIRECT LOANS.—With respect 

2 to each Federal Direct Stafford Loan, Federal Di3 rect Unsubsidized Stafford Loan, Federal Direct 

4 PLUS Loan, and Federal Direct Consolidation 

5 Loan, for which the first disbursement was made to 

6 a borrower, or the application for the consolidation 

7 loan was received from a borrower, on or before the 

8 date of enactment of the Student Loan Debt Relief 

9 Act of 2019, the Secretary shall, without any further 

10 action by the borrower (other than under subpara11 graph (C))— 

12 ‘‘(A) discharge the liability on such Fed13 eral Direct Stafford Loan, Federal Direct Un14 subsidized Stafford Loan, Federal Direct PLUS 

15 Loan, or Federal Direct Consolidation Loan; 

16 ‘‘(B) issue to the borrower a new Federal 

17 Direct Stafford Loan, Federal Direct Unsub18 sidized Stafford Loan, Federal Direct PLUS 

19 Loan, or Federal Direct Consolidation Loan, re20 spectively— 

21 ‘‘(i) in an amount equal to the sum of 

22 the unpaid principal, accrued unpaid inter23 est, and late charges of the loan for which 

24 the liability is being discharged under sub25 paragraph (A); and 


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1 ‘‘(ii) which has the same terms and 

2 conditions as the original loan, except that 

3 the rate of interest shall be determined 

4 under subsection (c); and 

5 ‘‘(C) provide the borrower an opportunity 

6 to opt-out of the refinancing under this para7 graph. 

8 ‘‘(2) REFINANCING FFEL PROGRAM LOANS AS

9 REFINANCED FEDERAL DIRECT LOANS.— 

10 ‘‘(A) IN GENERAL.—With respect to each 

11 loan that was made, insured, or guaranteed 

12 under part B and for which the first disburse13 ment was made to a borrower, or the applica14 tion for the consolidation loan was received 

15 from a borrower, before July 1, 2010, the Sec16 retary shall, without any further action by the 

17 borrower (other than to provide the borrower an 

18 opportunity to opt-out of the refinancing under 

19 this paragraph), issue to the borrower a loan 

20 made under this part— 

21 ‘‘(i) in an amount equal to the sum of 

22 the unpaid principal, accrued unpaid inter23 est, and late charges of the loan selected to 

24 be so refinanced; 


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1 ‘‘(ii) the proceeds of which shall be 

2 paid to the holder of the loan selected to 

3 be so refinanced to discharge the liability 

4 on such loan; and 

5 ‘‘(iii) which has a rate of interest de6 termined under subsection (c). 

7 ‘‘(B) DESIGNATION OF LOANS.—A loan 

8 issued under this section the proceeds of which 

9 is discharging the liability on a loan made, in10 sured, or guaranteed— 

11 ‘‘(i) under section 428 shall be a Fed12 eral Direct Stafford Loan; 

13 ‘‘(ii) under section 428B shall be a 

14 Federal Direct PLUS Loan; 

15 ‘‘(iii) under section 428H shall be a 

16 Federal Direct Unsubsidized Stafford 

17 Loan; and 

18 ‘‘(iv) under section 428C shall be a 

19 Federal Direct Consolidation Loan. 

20 ‘‘(c) INTEREST RATES.— 

21 ‘‘(1) IN GENERAL.—The interest rate for Fed22 eral Direct Stafford Loans, Federal Direct Unsub23 sidized Stafford Loans, Federal Direct PLUS 

24 Loans, and Federal Direct Consolidation Loans 

25 issued under this section, shall be a rate equal to— 


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1 ‘‘(A) in a case in which the original loan 

2 is a loan under section 428 or 428H, a Federal 

3 Direct Stafford loan, or a Federal Direct Un4 subsidized Stafford Loan, that was issued to an 

5 undergraduate student, the rate for Federal Di6 rect Stafford Loans and Federal Direct Unsub7 sidized Stafford Loans issued to undergraduate 

8 students for the 12-month period beginning on 

9 July 1, 2016, and ending on June 30, 2017; 

10 ‘‘(B) in a case in which the original loan 

11 is a loan under section 428 or 428H, a Federal 

12 Direct Stafford Loan, or a Federal Direct Un13 subsidized Stafford Loan, that was issued to a 

14 graduate or professional student, the rate for 

15 Federal Direct Unsubsidized Stafford Loans 

16 issued to graduate or professional students for 

17 the 12-month period beginning on July 1, 2016, 

18 and ending on June 30, 2017; 

19 ‘‘(C) in an case in which the original loan 

20 is a loan under section 428B or a Federal Di21 rect PLUS Loan, the rate for Federal Direct 

22 PLUS Loans for the 12-month period begin23 ning on July 1, 2016, and ending on June 30, 

24 2017; and 


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1 ‘‘(D) in a case in which the original loan 

2 is a loan under section 428C or a Federal Di3 rect Consolidation Loan, a rate calculated in ac4 cordance with paragraph (2). 

5 ‘‘(2) INTEREST RATES FOR CONSOLIDATION

6 LOANS.— 

7 ‘‘(A) METHOD OF CALCULATION.—To de8 termine the interest rate for a Federal Direct 

9 Federal Consolidation Loan issued under this 

10 section, the Secretary shall— 

11 ‘‘(i) determine each original loan for 

12 which the liability was discharged by the 

13 proceeds of a loan under section 428C or 

14 a Federal Direct Consolidation Loan, and 

15 calculate the proportion of the unpaid prin16 cipal balance of the loan under section 

17 428C or the Federal Direct Consolidation 

18 Loan that is applicable to each such origi19 nal loan; 

20 ‘‘(ii) use the proportions determined 

21 in accordance with clause (i) and the inter22 est rate applicable for each original loan, 

23 as determined under subparagraph (B), to 

24 calculate the weighted average of the inter25 est rates on the loans consolidated into the 


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1 loan under section 428C or the Federal Di2 rect Consolidation Loan; and 

3 ‘‘(iii) apply the weighted average cal4 culated under clause (ii) as the interest 

5 rate for the Federal Direct Consolidation 

6 Loan made under this section and for 

7 which the interest rate is being determined 

8 under this paragraph. 

9 ‘‘(B) INTEREST RATES FOR COMPONENT

10 LOANS.—The interest rate for each original 

11 loan for which the liability is discharged by the 

12 proceeds of loan made under section 428C or a 

13 Federal Direct Consolidation Loan shall be the 

14 following: 

15 ‘‘(i) The interest rate for any such 

16 original loan made, insured or guaranteed 

17 under section 428 or 428H, or that is a 

18 Federal Direct Stafford Loan or Federal 

19 Direct Unsubsidized Stafford Loan, issued 

20 to an undergraduate student shall be a 

21 rate equal to the lesser of— 

22 ‘‘(I) the rate for Federal Direct 

23 Stafford Loans and Federal Direct 

24 Unsubsidized Stafford Loans issued 

25 to undergraduate students for the 12- 


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1 month period beginning on July 1, 

2 2016, and ending on June 30, 2017; 

3 or 

4 ‘‘(II) the interest rate on such 

5 original loan. 

6 ‘‘(ii) The interest rate for any such 

7 original loan made, insured or guaranteed 

8 under section 428 or 428H, or that is a 

9 Federal Direct Stafford Loan, or Federal 

10 Direct Unsubsidized Stafford Loan, issued 

11 to a graduate or professional student shall 

12 be a rate equal to the lesser of— 

13 ‘‘(I) the rate for Federal Direct 

14 Unsubsidized Stafford Loans issued 

15 to graduate or professional students 

16 for the 12-month period beginning on 

17 July 1, 2016, and ending on June 30, 

18 2017; or 

19 ‘‘(II) the interest rate on the 

20 original loan. 

21 ‘‘(iii) The interest rate for any such 

22 original loan made, insured or guaranteed 

23 under section 428B or that is a Federal 

24 Direct PLUS Loan shall be a rate equal to 

25 the lesser of— 


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1 ‘‘(I) the rate for Federal Direct 

2 PLUS Loans for the 12-month period 

3 beginning on July 1, 2016, and end4 ing on June 30, 2017; or 

5 ‘‘(II) the interest rate on the 

6 original loan. 

7 ‘‘(iv) The interest rate for any such 

8 original loan that is a loan under section 

9 428C or a Federal Direct Consolidation 

10 Loan shall be the weighted average of the 

11 interest rates determined under this sub12 paragraph for each loan for which the li13 ability is discharged by the proceeds of 

14 such consolidation loan. 

15 ‘‘(v) The interest rate for any original 

16 loan for which the liability was discharged 

17 with the proceeds of a loan made under 

18 section 428C or a Federal Direct Consoli19 dation Loan and is not described in clauses 

20 (i) through (iv) shall be the interest rate 

21 on such original loan. 

22 ‘‘(3) FIXED RATE.—The applicable rate of in23 terest determined under paragraph (1) for a loan 

24 issued under this section shall be fixed for the period 

25 of the loan. 


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1 ‘‘(d) REPAYMENT PERIODS.—A loan issued under 

2 this section shall not result in the extension of the dura3 tion of the repayment period of the original loan, and the 

4 borrower shall retain the same repayment term that was 

5 in effect on the original loan. Nothing in this paragraph 

6 shall be construed to prevent a borrower from electing a 

7 different repayment plan at any time in accordance with 

8 section 455(d)(3). 

9 ‘‘(e) ORIGINAL LOAN DEFINED.—In this section, the 

10 term ‘original loan’ means a loan for which the liability 

11 is discharged with the proceeds of a loan issued under this 

12 section. 

13 ‘‘SEC. 460B. REFINANCING OF PRIVATE EDUCATION LOANS. 

14 ‘‘(a) PROGRAM AUTHORIZED.— 

15 ‘‘(1) IN GENERAL.—During the period begin16 ning on the date that is 6 months after the date of 

17 enactment of the Student Loan Debt Relief Act of 

18 2019, and ending on the date that is 9 months after 

19 such date of enactment, the Secretary, in consulta20 tion with the Secretary of the Treasury, shall carry 

21 out a program under which the Secretary, upon re22 ceiving an application from a borrower who has a 

23 loan obligation on an eligible private education loan, 

24 shall issue such borrower a loan under this section 

25 in accordance with the following: 


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1 ‘‘(A) The loan issued under this section 

2 shall be in an amount equal to the sum of the 

3 unpaid principal, accrued unpaid interest, and 

4 late charges of the private education loan. 

5 ‘‘(B) The Secretary shall pay the proceeds 

6 of the loan issued under this section to the pri7 vate educational lender (or subsequent holder) 

8 of the private education loan, in order to dis9 charge the borrower and any cosigners from 

10 any remaining obligation to the lender with re11 spect to the private education loan. 

12 ‘‘(C) The Secretary shall require that the 

13 borrower undergo loan counseling that provides 

14 all of the information and counseling required 

15 under clauses (i) through (viii) of section 

16 485(b)(1)(A) before the carrying out subpara17 graphs (A) and (B) with respect to such bor18 rower. 

19 ‘‘(D) The Secretary shall issue the loan as 

20 a Federal Direct Stafford Loan with a rate of 

21 interest determined under subsection (b). 

22 ‘‘(b) INTEREST RATE.— 

23 ‘‘(1) IN GENERAL.—The interest rate for a 

24 Federal Direct Stafford Loan issued under this sec25 tion shall be— 


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1 ‘‘(A) in the case of a Federal Direct Staf2 ford Loan discharging the liability on a private 

3 education loan issued for undergraduate post4 secondary educational expenses, a rate equal to 

5 the rate for Federal Direct Stafford Loans and 

6 Federal Direct Unsubsidized Stafford Loans 

7 issued to undergraduate students for the 12- 

8 month period beginning on July 1, 2016, and 

9 ending on June 30, 2017; and 

10 ‘‘(B) in the case of a Federal Direct Staf11 ford Loan discharging the liability on a private 

12 education loan issued for graduate or profes13 sional degree postsecondary educational ex14 penses, a rate equal to the rate for Federal Di15 rect Unsubsidized Stafford Loans issued to 

16 graduate or professional students for the 12- 

17 month period beginning on July 1, 2016, and 

18 ending on June 30, 2017. 

19 ‘‘(2) COMBINED UNDERGRADUATE AND GRAD20 UATE STUDY LOANS.—In the case of a Federal Di21 rect Stafford Loan discharging the liability on a pri22 vate education loan issued for both undergraduate 

23 and graduate or professional postsecondary edu24 cational expenses, the interest rate shall be a rate 

25 equal to the rate for Federal Direct PLUS Loans 


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1 for the 12-month period beginning on July 1, 2016, 

2 and ending on June 30, 2017. 

3 ‘‘(3) FIXED RATE.—The applicable rate of in4 terest determined under this subsection for a Fed5 eral Direct Stafford Loan issued under this section 

6 shall be fixed for the period of the loan. 

7 ‘‘(c) NO INCLUSION IN AGGREGATE LIMITS.—The 

8 amount of a Federal Direct Stafford Loan issued under 

9 this section, or a Federal Direct Consolidated Loan to the 

10 extent such loan is used to repay such a Federal Direct 

11 Stafford Loan, shall not be included in calculating a bor12 rower’s annual or aggregate loan limits under section 428 

13 or 428H. 

14 ‘‘(d) PRIVATE EDUCATIONAL LENDER REPORTING

15 REQUIREMENT.— 

16 ‘‘(1) REPORTING REQUIRED.—Not later than 6 

17 months after the date of enactment of the Student 

18 Loan Debt Relief Act of 2019, the Secretary, in con19 sultation with the Secretary of the Treasury and the 

20 Director of the Bureau of Consumer Financial Pro21 tection, shall establish a requirement that private 

22 educational lenders report the data described in 

23 paragraph (2) to the Secretary, to Congress, to the 

24 Secretary of the Treasury, and to the Director of the 

25 Bureau of Consumer Financial Protection, in order 


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1 to allow for an assessment of the private education 

2 loan market. 

3 ‘‘(2) CONTENTS OF REPORTING.—The data 

4 that private educational lenders shall report in ac5 cordance with paragraph (1) shall include each of 

6 the following about private education loans (as de7 fined in section 140(a) of the Truth in Lending Act 

8 (15 U.S.C. 1650(a))): 

9 ‘‘(A) The total amount of private education 

10 loan debt the lender holds. 

11 ‘‘(B) The total number of private edu12 cation loan borrowers the lender serves. 

13 ‘‘(C) The average interest rate on the out14 standing private education loan debt held by the 

15 lender. 

16 ‘‘(D) The proportion of private education 

17 loan borrowers who are in default on a loan 

18 held by the lender. 

19 ‘‘(E) The proportion of the outstanding 

20 private education loan volume held by the lend21 er that is in default. 

22 ‘‘(F) The proportions of outstanding pri23 vate education loan borrowers who are 30, 60, 

24 and 90 days delinquent. 


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1 ‘‘(G) The proportions of outstanding pri2 vate education loan volume that is 30, 60, and 

3 90 days delinquent. 

4 ‘‘(e) SUNSET.—The authority to issue loans under 

5 this section shall expire on the date that is 8 months after 

6 the date of enactment of the Student Loan Debt Relief 

7 Act of 2019. 

8 ‘‘(f) DEFINITIONS.—In this section: 

9 ‘‘(1) PRIVATE EDUCATIONAL LENDER.—The 

10 term ‘private educational lender’ has the meaning 

11 given the term in section 140(a) of the Truth in 

12 Lending Act (15 U.S.C. 1650(a)). 

13 ‘‘(2) ELIGIBLE PRIVATE EDUCATION LOAN.— 

14 The term ‘eligible private education loan’ means a 

15 private education loan, as defined in section 140(a) 

16 of the Truth in Lending Act (15 U.S.C. 1650(a)), 

17 that— 

18 ‘‘(A) was disbursed to the borrower on or 

19 before the date of enactment of the Student 

20 Loan Debt Relief Act of 2019; and 

21 ‘‘(B) was for the borrower’s own postsec22 ondary educational expenses for an eligible pro23 gram at an institution of higher education par24 ticipating in the loan program under this part, 

25 as of the date that the loan was disbursed.’’. 


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1 (c) INCOME-CONTINGENT REPAYMENT.—Section 

2 455(d)(1)(D) of the Higher Education Act of 1965 (20 

3 U.S.C. 1087e(d)(1)(D)) is amended by inserting before 

4 the semicolon at the end the following: ‘‘, and in calcu5 lating the period of time during which a borrower of a 

6 loan issued under section 460A has made monthly pay7 ments on such loan for purposes of the plan described in 

8 this subparagraph, the Secretary shall treat each monthly 

9 payment that otherwise meets the requirements of such 

10 plan and that was made on a loan for which the liability 

11 is discharged by the proceeds of such loan issued under 

12 section 460A, as a monthly payment made on such loan 

13 issued under section 460A’’. 

14 (d) PUBLIC SERVICE LOAN FORGIVENESS.—Section 

15 455(m) of the Higher Education Act of 1965 (20 U.S.C. 

16 1087e(m)) is amended— 

17 (1) by redesignating paragraphs (3) and (4) as 

18 paragraphs (4) and (5), respectively; and 

19 (2) by inserting after paragraph (2) the fol20 lowing: 

21 ‘‘(3) TREATMENT OF LOANS ISSUED UNDER

22 SECTION 460A.—Notwithstanding paragraph (1), in 

23 determining the number of monthly payments made 

24 under paragraph (1) on an eligible Federal Direct 

25 Loan issued under section 460A the proceeds of 


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1 which discharges the liability on a loan made under 

2 this part, the Secretary shall treat each monthly 

3 payment made under paragraph (1) on the loan be4 fore the liability on such loan was so discharged as 

5 a monthly payment made on such eligible Federal 

6 Direct Loan.’’; 

7 (e) INCOME-BASED REPAYMENT.—Section 493C of 

8 the Higher Education Act of 1965 (20 U.S.C. 1098e) is 

9 amended by adding at the end the following: 

10 ‘‘(f) TREATMENT OF REFINANCED LOANS.—In cal11 culating the period of time during which a borrower of 

12 a loan issued under section 460A has made monthly pay13 ments on such loan for purposes of subsection (b)(7), the 

14 Secretary shall treat each monthly payment that otherwise 

15 meets the requirements of this section and that was made 

16 on a loan for which the liability is discharged by the pro17 ceeds of such loan issued under section 460A, as a month18 ly payment made on such loan issued under section 

19 460A.’’. 


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1 TITLE III—DISCHARGEABILITY 

2 OF STUDENT LOANS IN BANK3 RUPTCY 

4 SEC. 301. DISCHARGEABILITY OF STUDENT LOANS IN 

5 BANKRUPTCY. 

6 (1) EXCEPTION TO DISCHARGE.—Section 

7 523(a) of title 11 of the United States Code is 

8 amended by striking paragraph (8). 

9 (2) CONFORMING AMENDMENT.—Section 

10 1328(a)(2) of title 11 of the United States Code is 

11 amended by striking ‘‘(8),’’. 

12 TITLE IV—GENERAL 

13 PROVISIONS 

14 SEC. 401. REPORT ON PROGRESS OF IMPLEMENTATION. 

15 Not later than the date that is 6 months after the 

16 date of enactment of this Act, the Secretary of Education 

17 and the Secretary of the Treasury shall, jointly, submit 

18 to Congress a report on the progress of the implementa19 tion of the provisions of titles I and II. 

20 SEC. 402. NOTIFICATION TO BORROWERS. 

21 (a) IN GENERAL.—Not later than the date that is 

22 3 months after the date of enactment of this Act— 

23 (1) the Secretary of Education— 

24 (A) shall take such steps as may be nec25 essary to notify borrowers of an eligible Federal 


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1 loan of the loan discharge available under title 

2 I, including the applicable deadlines; 

3 (B) in coordination with the Secretary of 

4 the Treasury and the Director of the Bureau of 

5 Consumer Financial Protection, shall undertake 

6 a campaign to notify borrowers of loans made, 

7 insured, or guaranteed under part B or D of 

8 title IV of the Higher Education Act of 1965 

9 that such borrowers may be eligible to refinance 

10 such loans at a lower rate of interest under sec11 tion 460A of the Higher Education Act of 

12 1965, as added by title II of this Act, which 

13 campaign shall include— 

14 (i) developing consumer information 

15 materials about the availability of such re16 financing; and 

17 (ii) requiring servicers of such loans 

18 to provide such consumer information to 

19 borrowers in a manner determined appro20 priate by the Secretary, in consultation 

21 with the Director of the Bureau of Con22 sumer Financial Protection; and 

23 (C) in coordination with the Secretary of 

24 the Treasury and the Director of the Bureau of 

25 Consumer Financial Protection, shall undertake 


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1 a campaign to alert borrowers of private edu2 cation loans— 

3 (i) that such borrowers may be eligible 

4 to refinance such private loans as Federal 

5 Direct Stafford Loans under section 460B 

6 of the Higher Education Act of 1965, as 

7 added by title II of this Act; and 

8 (ii) such Federal Direct Stafford 

9 Loans may be eligible for loan discharge 

10 under title I of this Act; and 

11 (2) the Secretary of Health and Human Serv12 ices, in consultation with the Secretary of Edu13 cation, shall take such steps as may be necessary to 

14 inform borrowers of a loan made, insured, or guar15 anteed by the Department of Health and Human 

16 Services that is eligible for consolidation under sec17 tion 455(g) of the Higher Education Act of 1965 

18 (20 U.S.C. 1087e(g)), that the— 

19 (A) borrower may be eligible for a Federal 

20 Direct Consolidation Loan under such section 

21 455(g); and 

22 (B) such Federal Direct Consolidation 

23 Loan may be eligible for loan discharge under 

24 title I of this Act. 


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1 (b) NOTIFICATION BY PRIVATE EDUCATION LOAN

2 HOLDERS.—Each holder of a private education loan shall, 

3 not later than the date that is 3 months after the date 

4 of enactment of this Act, notify the borrower of such pri5 vate education loan that the borrower may be eligible to 

6 refinance the private education loan as a Federal Direct 

7 Stafford Loan under section 460B of the Higher Edu8 cation Act of 1965, and such Federal Direct Stafford 

9 Loan may be eligible for loan discharge under title I of 

10 this Act. 

11 SEC. 403. INAPPLICABILITY OF TITLE IV NEGOTIATED 

12 RULEMAKING AND MASTER CALENDAR EX13 CEPTION. 

14 Sections 482(c) and 492 of the Higher Education Act 

15 of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to 

16 this Act or any amendments made by this Act, or to any 

17 regulations promulgated under this Act or under such 

18 amendments. 

19 SEC. 404. DEFINITIONS. 

20 In this Act: 

21 (1) ELIGIBLE FEDERAL LOAN.—The term ‘‘eli22 gible Federal loan’’ means— 

23 (A) a loan made, insured, or guaranteed 

24 under title IV of the Higher Education Act of 

25 1965 (20 U.S.C. 1071 et seq.) (other than a 


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1 loan described in subparagraph (B)) on or be2 fore the date of enactment of this Act; or 

3 (B) a Federal Direct Stafford Loan issued 

4 under section 460B of the Higher Education 

5 Act of 1965, as added by title II of this Act, 

6 on a date that is not later than 9 months after 

7 the date of enactment of this Act. 

8 (2) PRIVATE EDUCATION LOAN.—The term 

9 ‘‘private education loan’’ has the meaning given such 

10 term in section 140(a) of the Truth in Lending Act 

11 (15 U.S.C. 1650(a)). 

12 (3) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Education. 

14 (4) TAXPAYER.—The term ‘‘taxpayer’’ has the 

15 meaning given such term in section 7701 of the In16 ternal Revenue Code of 1986. 

Æ 


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