IB 

Union Calendar No. 565 

116TH CONGRESS 

2D SESSION H. R. 4545 

[Report No. 116–682, Part I] 

To provide for the discharge of a private education loan in the case of 

death or total and permanent disability of a student obligor, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 27, 2019 

Ms. DEAN 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 

DECEMBER 21, 2020 

Additional sponsors: Mr. CASTEN of Illinois, Mr. SHERMAN, Mr. PALLONE, 

and Mr. KILDEE

DECEMBER 21, 2020 

Reported from the Committee on Financial Services with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

DECEMBER 21, 2020 

Committee on Ways and Means discharged; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on September 27, 2019] 


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•HR 4545 RH

A BILL 

To provide for the discharge of a private education loan 

in the case of death or total and permanent disability 

of a student obligor, and for other purposes. 


pbinns on DSKJLVW7X2PROD with BILLS
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•HR 4545 RH

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 ‘‘Private Loan Disability 

5 Discharge Act of 2019’’. 

6 SEC. 2. PROTECTIONS FOR OBLIGORS AND COSIGNERS IN 

7 CASE OF DEATH OR TOTAL AND PERMANENT 

8 DISABILITY. 

9 (a) IN GENERAL.—Section 140(g) of the Truth in 

10 Lending Act (15 U.S.C. 1650(g)) is amended— 

11 (1) in paragraph (2)— 

12 (A) in the heading, by striking ‘‘IN CASE OF

13 DEATH OF BORROWER’’; 

14 (B) in subparagraph (A), by inserting after 

15 ‘‘of the death’’, the following: ‘‘or total and per16 manent disability’’; and 

17 (C) in subparagraph (C), by inserting after 

18 ‘‘of the death’’, the following: ‘‘or total and per19 manent disability’’; and 

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

21 ‘‘(3) DISCHARGE IN CASE OF DEATH OR TOTAL

22 AND PERMANENT DISABILITY OF BORROWER.—The 

23 holder of a private education loan shall, when notified 

24 of the death or total and permanent disability of a 

25 student obligor, discharge the liability of the student 


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•HR 4545 RH

1 obligor on the loan and may not, after such notifica2 tion— 

3 ‘‘(A) attempt to collect on the outstanding 

4 liability of the student obligor; and 

5 ‘‘(B) in the case of total and permanent dis6 ability, monitor the disability status of the stu7 dent obligor at any point after the date of dis8 charge. 

9 ‘‘(4) TOTAL AND PERMANENT DISABILITY DE10 FINED.—For the purposes of this subsection and with 

11 respect to an individual, the term ‘total and perma12 nent disability’ means the individual is totally and 

13 permanently disabled, as such term is defined in sec14 tion 685.102(b) of title 34 of the Code of Federal Reg15 ulations. 

16 ‘‘(5) PRIVATE DISCHARGE IN CASES OF CERTAIN

17 DISCHARGE FOR DEATH OR DISABILITY.—The holder 

18 of a private education loan shall, when notified of the 

19 discharge of liability of a student obligor on a loan 

20 described under section 108(f)(5)(A) of the Internal 

21 Revenue Code of 1986, discharge any liability of the 

22 student obligor (and any cosigner) on any private 

23 education loan which the private education loan hold24 er holds and may not, after such notification— 


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•HR 4545 RH

1 ‘‘(A) attempt to collect on the outstanding 

2 liability of the student obligor; and 

3 ‘‘(B) in the case of total and permanent dis4 ability, monitor the disability status of the stu5 dent obligor at any point after the date of dis6 charge.’’. 

7 (b) TAX LIABILITY.—Section 108(f)(5)(A) of the Inter8 nal Revenue Code of 1986 (26 U.S.C. 108(f)(5)(A)) is 

9 amended— 

10 (1) by striking ‘‘, and before January 1, 2026’’; 

11 (2) in clause (ii), by striking ‘‘or’’; 

12 (3) by redesignating clause (iii) as clause (iv); 

13 and 

14 (4) by inserting after clause (ii) the following: 

15 ‘‘(iii) pursuant to paragraph (3) or (5) 

16 of section 140(g) of the Truth in Lending 

17 Act, or’’. 

18 (c) RULEMAKING.—The Director of the Bureau of Con19 sumer Financial Protection may issue rules to implement 

20 the amendments made by subsection (a) as the Director de21 termines appropriate. 

22 (d) EFFECTIVE DATE.—The amendments made by this 

23 section shall take effect 1 year after the date of the enact24 ment of this Act. 


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Union Calendar No. 565 

116TH CONGRESS 

2D SESSION H. R. 4545 

[Report No. 116–682, Part I] 

A BILL 

To provide for the discharge of a private education 

poses. disability of a student obligor, and for other purloan in the case of death or total and permanent 

DECEMBER 21, 2020 

Reported from the Committee on Financial Services with 

an amendment 

DECEMBER 21, 2020 

Committee on Ways and Means discharged; committed to 

Union and ordered to be printed the Committee of the Whole House on the State of the 


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