I 

116TH CONGRESS 

1ST SESSION H. R. 4545 

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 

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. 

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’’. 


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1 SEC. 2. PROTECTIONS FOR OBLIGORS AND COSIGNERS IN 

2 CASES OF DEATH OR TOTAL AND PERMA3 NENT DISABILITY. 

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

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

6 (1) in paragraph (2)— 

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

8 OF DEATH OF BORROWER’’; 

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

10 ‘‘of the death’’, the following: ‘‘or total and per11 manent disability’’; and 

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

13 ‘‘of the death’’, the following: ‘‘or total and per14 manent disability’’; and 

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

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

17 AND PERMANENT DISABILITY OF BORROWER.—The 

18 holder of a private education loan shall, when noti19 fied of the death or total and permanent disability 

20 of a student obligor, discharge the liability of the 

21 student obligor on the loan and may not, after such 

22 notification— 

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

24 liability of the student obligor; and 

25 ‘‘(B) in the case of total and permanent 

26 disability, monitor the disability status of the 


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1 student obligor at any point after the date of 

2 discharge. 

3 ‘‘(4) TOTAL AND PERMANENT DISABILITY DE4 FINED.—For the purposes of this subsection and 

5 with respect to an individual, the term ‘total and 

6 permanent disability’ means the individual is totally 

7 and permanently disabled, as such term is defined in 

8 section 685.102(b) of title 34 of the Code of Federal 

9 Regulations. 

10 ‘‘(5) PRIVATE DISCHARGE IN CASES OF CER11 TAIN DISCHARGE FOR DEATH OR DISABILITY.—The 

12 holder of a private education loan shall, when noti13 fied of the discharge of liability of a student obligor 

14 on a loan described under section 108(f)(5)(A) of 

15 the Internal Revenue Code of 1986, discharge any li16 ability of the student obligor (and any cosigner) on 

17 any private education loan which the private edu18 cation loan holder holds and may not, after such no19 tification— 

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

21 liability of the student obligor; and 

22 ‘‘(B) in the case of total and permanent 

23 disability, monitor the disability status of the 

24 student obligor at any point after the date of 

25 discharge.’’. 


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1 (b) TAX LIABILITY.—Section 108(f)(5)(A) of the In2 ternal Revenue Code of 1986 (26 U.S.C. 108(f)(5)(A)) is 

3 amended— 

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

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

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

7 and 

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

9 ‘‘(iii) pursuant to paragraph (3) or 

10 (5) of section 140(g) of the Truth in Lend11 ing Act, or’’. 

12 (c) RULEMAKING.—The Director of the Bureau of 

13 Consumer Financial Protection may issue rules to imple14 ment the amendments made by subsection (a) as the Di15 rector determines appropriate. 

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

17 this section shall take effect 1 year after the date of the 

18 enactment of this Act. 

Æ 


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