I 

116TH CONGRESS 

1ST SESSION H. R. 3764 

To amend title 9 of the United States Code to prohibit predispute arbitration 

agreements that force arbitration of disputes arising from private education loans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 15, 2019 

Ms. SCANLON (for herself, Mrs. DAVIS of California, Mr. CICILLINE, and Mr. 

NADLER) introduced the following bill; which was referred to the Committee on the Judiciary 

A BILL 

To amend title 9 of the United States Code to prohibit 

predispute arbitration agreements that force arbitration 

of disputes arising from private education 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. 

4 This Act may be cited as the ‘‘Justice for Student 

5 Borrowers Act’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to— 


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1 (1) prohibit private educational lenders from 

2 using predispute arbitration agreements in their pri3 vate education loans; and 

4 (2) to prohibit private educational lenders from 

5 using predispute joint-action waivers in their private 

6 education loans. 

7 SEC. 3. ARBITRATION OF PRIVATE EDUCATION LOAN DIS8 PUTES. 

9 (a) IN GENERAL.—Title 9 of the United States Code 

10 is amended by adding at the end the following: 

11 ‘‘CHAPTER 4—ARBITRATION OF PRIVATE 

12 EDUCATION LOAN DISPUTES 

‘‘401. Definitions. 

‘‘402. No validity or enforceability. 

13 ‘‘§ 401. Definitions 

14 ‘‘In this chapter— 

15 ‘‘(1) the term ‘private education loan’ has the 

16 meaning given that term under section 140 of the 

17 Truth in Lending Act; 

18 ‘‘(2) the term ‘predispute arbitration agree19 ment’ means an agreement to arbitrate a dispute 

20 that has not yet arisen at the time of the making 

21 of the agreement; and 

22 ‘‘(3) the term ‘predispute joint-action waiver’ 

23 means an agreement, whether or not part of a 

24 predispute arbitration agreement, that would proVerDate Sep 11 2014 21:49 Jul 23, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3764.IH H3764

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1 hibit, or waive the right of, one of the parties to the 

2 agreement to participate in a joint, class, or collec3 tive action in a judicial, arbitral, administrative, or 

4 other forum, concerning a dispute that has not yet 

5 arisen at the time of the making of the agreement. 

6 ‘‘§ 402. No validity or enforceability 

7 ‘‘(a) IN GENERAL.—Notwithstanding any other pro8 vision of this title, no predispute arbitration agreement or 

9 predispute joint-action waiver shall be valid or enforceable 

10 with respect to a dispute relating to a private education 

11 loan. 

12 ‘‘(b) APPLICABILITY.— 

13 ‘‘(1) IN GENERAL.—An issue as to whether this 

14 chapter applies with respect to a dispute shall be de15 termined under Federal law. The applicability of this 

16 chapter to an agreement to arbitrate and the validity 

17 and enforceability of an agreement to which this 

18 chapter applies shall be determined by a court, rath19 er than an arbitrator, irrespective of whether the 

20 party resisting arbitration challenges the arbitration 

21 agreement specifically or in conjunction with other 

22 terms of the contract containing such agreement, 

23 and irrespective of whether the agreement purports 

24 to delegate such determinations to an arbitrator. 


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1 ‘‘(2) COLLECTIVE BARGAINING AGREEMENTS.— 

2 Nothing in this chapter shall apply to any arbitra3 tion provision in a contract between an employer and 

4 a labor organization or between labor organizations, 

5 except that no such arbitration provision shall have 

6 the effect of waiving the right of a worker to seek 

7 judicial enforcement of a right arising under a provi8 sion of the Constitution of the United States, a 

9 State constitution, or a Federal or State statute, or 

10 public policy arising therefrom.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

12 (1) IN GENERAL.—Title 9 of the United States 

13 Code is amended— 

14 (A) in section 1 by striking ‘‘of seamen,’’ 

15 and all that follows through ‘‘interstate com16 merce,’’ and inserting in its place ‘‘of individ17 uals, regardless of whether such individuals are 

18 designated as employees or independent con19 tractors for other purposes’’; 

20 (B) in section 2 by inserting ‘‘or as other21 wise provided in chapter 4’’ before the period at 

22 the end; 

23 (C) in section 208— 

24 (i) in the section heading by striking 

25 ‘‘CHAPTER 1; RESIDUAL APPLICAVerDate Sep 11 2014 21:49 Jul 23, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3764.IH H3764

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1 TION’’ and inserting ‘‘APPLICATION’’; 

2 and 

3 (ii) by adding at the end the fol4 lowing: ‘‘This chapter applies to the extent 

5 that this chapter is not in conflict with 

6 chapter 4.’’; and 

7 (D) in section 307— 

8 (i) in the section heading by striking 

9 ‘‘CHAPTER 1; RESIDUAL APPLICA10 TION’’ and inserting ‘‘APPLICATION’’; 

11 and 

12 (ii) by adding at the end the fol13 lowing: ‘‘This chapter applies to the extent 

14 that this chapter is not in conflict with 

15 chapter 4.’’. 

16 (2) TABLE OF SECTIONS.— 

17 (A) CHAPTER 2.—The table of sections of 

18 chapter 2 of title 9, United States Code, is 

19 amended by striking the item relating to section 

20 208 and inserting the following: 

‘‘208. Application.’’. 

21 (B) CHAPTER 3.—The table of sections of 

22 chapter 3 of title 9, United States Code, is 

23 amended by striking the item relating to section 

24 307 and inserting the following: 

‘‘307. Application.’’. 


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1 (3) TABLE OF CHAPTERS.—The table of chap2 ters of title 9, United States Code, is amended by 

3 adding at the end the following: 

‘‘4. Arbitration of private education loan disputes’’. 

4 SEC. 4. EFFECTIVE DATE. 

5 This Act, and the amendments made by this Act, 

6 shall take effect on the date of enactment of this Act and 

7 shall apply with respect to any dispute or claim that arises 

8 or accrues on or after such date. 

Æ 


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