I 

113TH CONGRESS 

2D SESSION H. R. 4643 

To amend the Truth in Lending Act to establish requirements for releasing 

a cosigner from obligations of a private education loan, for the treatment 

of the loan upon the death or bankruptcy of a cosigner of the loan, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 9, 2014 

Mr. LARSEN of Washington (for himself, Ms. NORTON, Ms. TSONGAS, Ms. 

DELBENE, Mr. PIERLUISI, Mr. HECK of Washington, Mr. CARSON of Indiana, Mr. ENYART, Mr. WELCH, and Mr. MORAN) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to establish requirements for releasing a cosigner from obligations of a 

private education loan, for the treatment of the loan 

upon the death or bankruptcy of a cosigner of the loan, 

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 ‘‘Bereaved Borrowers’ 

5 Bill of Rights Act of 2014’’. 


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1 SEC. 2. REQUIREMENTS FOR PRIVATE EDUCATIONAL 

2 LENDERS. 

3 Section 140 of such Act is further amended by adding 

4 at the end the following new subsection: 

5 ‘‘(g) REQUIREMENTS REGARDING COSIGNERS FOR A

6 PRIVATE EDUCATION LOAN.— 

7 ‘‘(1) COSIGNER RELEASE REQUIREMENTS.—If a 

8 private education loan has a cosigner who is jointly 

9 liable for such loan, a private educational lender 

10 shall include a process for releasing the cosigner 

11 from any obligations on the loan and in such process 

12 the lender— 

13 ‘‘(A) shall make the criteria for obtaining 

14 the release clear, transparent, and easily acces15 sible via the website of the private educational 

16 lender; 

17 ‘‘(B) shall notify the borrower if the bor18 rower is eligible to release a cosigner; 

19 ‘‘(C) shall, if denying a request to release 

20 a cosigner, provide an explanation for the denial 

21 and offer the borrower an opportunity to cor22 rect the request; and 

23 ‘‘(D) may not change the terms of the re24 lease to impose additional duties on the bor25 rower or cosigner over the duration of the pri26 vate education loan. 


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1 ‘‘(2) ADDITIONAL REQUIREMENTS.—Notwith2 standing any provision in a private education loan 

3 agreement that contains a process for releasing a co4 signer from obligations on the loan, a private edu5 cational lender shall, upon receiving notification of 

6 the death or bankruptcy of a cosigner— 

7 ‘‘(A) notify the borrower about the bor8 rower’s rights under the private education loan 

9 agreement regarding the release of the cosigner; 

10 and 

11 ‘‘(B) if the borrower continues to make on12 time payments (in the amount determined prior 

13 to the death or bankruptcy of the cosigner) on 

14 the private education loan, provide a period of 

15 time of not less than 90 days for the borrower 

16 to follow the process for release of the cosigner 

17 before deeming the borrower to be in default, 

18 changing the terms of the loan, accelerating the 

19 repayment terms of the loan, or notifying con20 sumer reporting agencies (as defined in section 

21 603(f)) of a change in the status of the loan. 

22 ‘‘(3) REQUIREMENTS IN CASE OF DEATH OR

23 BANKRUPTCY OF A COSIGNER.—Notwithstanding 

24 any provision in a private education loan agreement, 

25 a private educational lender shall, upon receiving noVerDate Mar 15 2010 03:56 May 17, 2014 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4643.IH H4643

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1 tification of the death or bankruptcy of a cosigner 

2 who is jointly liable for the private education loan— 

3 ‘‘(A) notify the borrower about the bor4 rower’s rights under the private education loan 

5 agreement regarding identifying a new cosigner 

6 or refinancing the loan; and 

7 ‘‘(B) if the borrower continues to make on8 time payments (in the amount determined prior 

9 to the death or bankruptcy of the cosigner) on 

10 the private education loan, provide a period of 

11 time of not less than 90 days for a borrower to 

12 identify a new cosigner or refinance the loan be13 fore deeming the borrower to be in default, 

14 changing the terms of the loan, accelerating the 

15 repayment terms of the loan, or notifying con16 sumer reporting agencies (as defined in section 

17 603(f)) of a change in the status of the loan.’’. 

18 SEC. 3. PROHIBITIONS FOR CONSUMER REPORTING AGEN19 CIES AND FURNISHERS OF INFORMATION TO 

20 CONSUMER REPORTING AGENCIES RELATED 

21 TO PRIVATE EDUCATION LOANS. 

22 (a) PROHIBITION FOR CONSUMER REPORTING AGEN23 CIES.—Subsection (a) of section 605 of the Fair Credit 

24 Reporting Act (15 U.S.C. 1681c(a)) is amended by adding 

25 at the end the following new paragraph: 


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1 ‘‘(7) Default on a private education loan (as de2 fined in section 140(a)) resulting from accelerated 

3 repayment terms of the loan after the death or 

4 bankruptcy of a cosigner who is jointly liable for the 

5 loan.’’. 

6 (b) PROHIBITION FOR FURNISHERS OF INFORMA7 TION TO CONSUMER REPORTING AGENCIES.—Paragraph 

8 (1) of section 623(a) of such Act is amended by adding 

9 the following new subparagraph: 

10 ‘‘(E) REPORTING INFORMATION ON PRI11 VATE EDUCATION LOANS.—A private edu12 cational lender (as defined in section 140(a)) or 

13 the servicer of a private education loan (as de14 fined in such section) shall not furnish any in15 formation relating to the loan to any consumer 

16 reporting agency if the consumer defaulted on 

17 the loan due to accelerated repayment terms of 

18 the loan after the death or bankruptcy of a co19 signer who is jointly liable for the loan.’’. 

Æ 


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