I 

111TH CONGRESS 

2D SESSION H. R. 5458 

To amend the Truth in Lending Act and the Higher Education Act of 

1965 to require additional disclosures and protections for students and 

cosigners with respect to student loans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 28, 2010 

Mr. ADLER of New Jersey (for himself, Mr. PASCRELL, Mr. CUMMINGS, and 

Mr. ROTHMAN of New Jersey) introduced the following bill; which was 

referred to the Committee on Financial Services, and in addition to the 

Committee on Education and Labor, 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 amend the Truth in Lending Act and the Higher Education Act of 1965 to require additional disclosures and 

protections for students and cosigners with respect to 

student 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; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Christopher Bryski Student Loan Protection Act’’ and 

6 ‘‘Christopher’s Law’’. 


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1 (b) FINDINGS.—The Congress finds the following: 

2 (1) There is no requirement for Federal or pri3 vate education lenders to provide information with 

4 respect to, and discuss the benefit of, creating an 

5 advance directive (such as durable power of attor6 ney, living will, etc.) for financial, legal, and medical 

7 decisionmaking in accordance with State law to be 

8 used in the event of the death, incapacitation, or dis9 ability of the student or such cosigner (if any). 

10 (2) In harsh contrast to existing comprehensive 

11 policies of the Secretary of Education, no require12 ment exists for private education lenders to provide 

13 information with respect to, and discuss the benefit 

14 of, credit insurance in connection with private edu15 cation loans that would protect the signer, and any 

16 such cosigner, in the event of their death, incapaci17 tation, or disability. 

18 (3) No requirement exists for private education 

19 lenders’ master promissory notes to include the same 

20 clear and concise wording in regards to the respon21 sible party in the event the signer or cosigner be22 comes disabled, incapacitated, or dies. A clear and 

23 concise definition would provide standard terms and 

24 conditions within private education lenders’ master 

25 promissory notes with respect to signer and cosigner 


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1 obligations. Not requiring clear and concise obliga2 tions allows for a very unclear delineation of respon3 sibility on the part of the private education lender, 

4 which is a great example of the freedom large pri5 vate education lenders currently have. 

6 (4) No standard forms exist for defining dis7 ability, incapacity or death of a private education 

8 loan signer, or cosigner. 

9 (5) No requirement exists for eligible lending 

10 institutions, as defined with the Higher Education 

11 Act of 1965, to disclose to the borrower, information 

12 on the conditions required to discharge the loan due 

13 to the disability, incapacity or death of the signer or 

14 cosigner (if any). 

15 (6) Congress modeled the definition of disability 

16 in the Americans with Disabilities Act of 1990 on 

17 the definition in section 504 of the Rehabilitation 

18 Act of 1973, which, through the time of the enact19 ment of the Americans with Disabilities Act of 1990, 

20 had been construed broadly to encompass both ac21 tual and perceived limitations, and limitations im22 posed by society. 

23 (7) Of the 1,400,000 people who sustain a trau24 matic brain injury each year in the United States, 

25 50,000 die; 235,000 are hospitalized; and 1,100,000 


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1 are treated and released from an emergency depart2 ment. 

3 (8) It is estimated that the annual incidence of 

4 spinal cord injury, not including those who die at the 

5 scene of the accident, is approximately 40 cases per 

6 1,000,000 people in the United States or approxi7 mately 12,000 new cases each year. Since there have 

8 not been any overall incidence studies of spinal cord 

9 injuries in the United States since the 1970s, it is 

10 not known if incidence has changed in recent years. 

11 (9) The number of disabled veterans has 

12 jumped by 25 percent since 2001 to 2,900,000. To13 day’s veterans, disabled or not, number nearly 

14 24,000,000. 

15 (10) In the 2007–2008 academic year, 13 per16 cent of students attending a 4-year public school, 

17 and 26.2 percent of students attending a 4-year pri18 vate school, borrowed monies from private loan pro19 viders. 

20 (11) According to Sallie Mae, in 2009, the 

21 number of cosigned private educational loans in22 creased from 66 percent to 84 percent of all private 

23 educational loans. 


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1 SEC. 2. ADDITIONAL STUDENT LOAN PROTECTIONS. 

2 (a) IN GENERAL.—Section 140 of the Truth in Lend3 ing Act (15 U.S.C. 1650) is amended by adding at the 

4 end the following new subsection: 

5 ‘‘(f) ADDITIONAL PROTECTIONS RELATING TO

6 DEATH OR DISABILITY OF SIGNER OR COSIGNER OF A

7 PRIVATE EDUCATION LOAN.— 

8 ‘‘(1) OBLIGATION TO DISCUSS ADVANCE DIREC9 TIVES.—In conjunction with— 

10 ‘‘(A) any student loan counseling provided 

11 by a covered educational institution to any new 

12 signer and cosigner (if any) at the time of any 

13 loan origination, loan reapplication, or loan con14 solidation, or at the time the cosigner assumes 

15 responsibility for repayment, the institution 

16 shall provide information with respect to, and 

17 discuss the benefit of, creating an advance di18 rective (such as a durable power of attorney, 

19 living will, etc.) for financial, legal, and medical 

20 decisionmaking, in accordance with State law, 

21 in the event of the death, incapacitation, or dis22 ability of the signer or cosigner (if any); and 

23 ‘‘(B) any negotiation or other discussion 

24 with respect to any private education loan, the 

25 private educational lender involved in such loan 

26 shall discuss with the signer, and cosigner (if 


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1 any), the benefit of creating an advance direc2 tive (such as a durable power of attorney, living 

3 will, etc.) for financial, legal, and medical deci4 sionmaking, in accordance with State law, with 

5 respect to such loan, in the event of the death, 

6 incapacitation, or disability of the student or 

7 such cosigner (if any). 

8 ‘‘(2) CLEAR AND COMPLETE DESCRIPTION OF

9 COSIGNER’S OBLIGATION.—In the case of any pri10 vate education lender who extends a private edu11 cation loan for which any cosigner is jointly liable, 

12 the lender shall define, clearly and concisely, the 

13 terms of such person’s obligations with respect to 

14 the loan, including the effect the death, incapacita15 tion, or disability of the signer or cosigner (if any) 

16 would have on any such obligation, in language that 

17 the Board determines would give a reasonable per18 son a reasonable apprehension of the obligation 

19 being assumed by becoming a cosigner for the loan. 

20 ‘‘(3) CREDIT INSURANCE.—In the case of any 

21 private education loan for which there is a cosigner, 

22 the private educational lender involved in such 

23 loan— 

24 ‘‘(A) shall provide information with respect 

25 to, and discuss the benefit of credit insurance 


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1 with the signer, and the cosigner, in connection 

2 with such loan that would protect the signer 

3 and any cosigner in the event of the death, in4 capacitation, or disability of the signer or any 

5 such cosigner; 

6 ‘‘(B) shall discuss with the student and the 

7 cosigner the benefit of credit insurance in con8 nection with such loan that would protect the 

9 student and any cosigner in the event of the 

10 death or disability of the student or any such 

11 cosigner; 

12 ‘‘(C) may provide or make arrangements 

13 for the provision of any credit insurance re14 ferred to in subparagraph (A) in conjunction 

15 with the loan; and 

16 ‘‘(D) may not— 

17 ‘‘(i) establish any condition or require18 ment that the signer and cosigner (if any) 

19 has or has not obtained any such consumer 

20 credit insurance from the private edu21 cational lender, and affiliate of the private 

22 education lender or any other consumer 

23 credit insurance provider; or 

24 ‘‘(ii) extend or deny a loan, or fix or 

25 vary the terms of the loan, on the basis 


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1 that the signer and cosigner (if any) has or 

2 has not obtained any such consumer credit 

3 insurance from the private educational 

4 lender, and affiliate of the private edu5 cation lender, or any other consumer credit 

6 insurance provider. 

7 ‘‘(4) MODEL FORMS.—The Board shall publish 

8 model forms under section 105 for describing a co9 signer’s obligation for purposes of paragraph (2). 

10 ‘‘(5) REGULATIONS DEFINING DEATH OR DIS11 ABILITY.— 

12 ‘‘(A) IN GENERAL.—The Board shall— 

13 ‘‘(i) prescribe regulations defining the 

14 manner and standards for establishing that 

15 a private education loan signer, or 

16 consigner (if any), has died or become in17 capacitated or disabled; and 

18 ‘‘(ii) implement and enforce such reg19 ulations in connection with any private 

20 education loan. 

21 ‘‘(B) COORDINATION WITH SECRETARY OF

22 EDUCATION.—In prescribing regulations under 

23 subparagraph (A), the Board shall— 

24 ‘‘(i) consult with the Secretary of 

25 Education; and 


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1 ‘‘(ii) conform such regulations with 

2 the regulations prescribed by such Sec3 retary under section 437(a)(1) of the 

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

5 1087(a)(1)) to the fullest extent prac6 ticable, including safeguards to prevent 

7 fraud and abuse. 

8 ‘‘(C) DETERMINATION BY THE SECRETARY

9 OF VETERANS AFFAIRS.—The regulations pre10 scribed under subparagraph (A) shall provide 

11 that a determination described in section 

12 437(a)(2) of the Higher Education Act of 1965 

13 (20 U.S.C. 1087(a)(2)) by the Secretary of Vet14 erans Affairs with respect to any person shall 

15 be dispositive for such person for purposes of 

16 this subsection and any agreement covered by 

17 this subsection.’’. 

18 (b) DEFINITIONS.—Subsection (a) of section 140 of 

19 the Truth in Lending Act (15 U.S.C. 1650(a)) is amended 

20 by adding at the end the following new paragraphs: 

21 ‘‘(9) ADVANCE DIRECTIVE.—The term ‘advance 

22 directive’ means a written instruction, such as a liv23 ing will or durable power of attorney for health care, 

24 recognized under State law (whether statutory or as 

25 recognized by the courts of the State), relating to 


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1 the provision of health care when the individual is 

2 incapacitated. 

3 ‘‘(10) COSIGNER.—The term ‘cosigner’— 

4 ‘‘(A) means any individual who is liable for 

5 the obligation of another without compensation, 

6 regardless of how designated in the contract or 

7 instrument; 

8 ‘‘(B) includes any person whose signature 

9 is requested as condition to grant credit or to 

10 forebear on collection; and 

11 ‘‘(C) does not include a spouse of an indi12 vidual referred to in subparagraph (A) whose 

13 signature is needed to perfect security interest 

14 individual. 

15 ‘‘(11) CREDIT INSURANCE.—The term ‘credit 

16 insurance’ has the meaning given to such term by 

17 the Board in regulations for purposes of this section. 

18 ‘‘(12) DISABILITY.—The term ‘disability’ has 

19 the meaning given to such term in section 3 of the 

20 Americans with Disabilities Act of 1990. 

21 ‘‘(13) DURABLE POWER OF ATTORNEY.—The 

22 term ‘durable power of attorney’ meaning given to 

23 such term in the Uniform Durable Power of Attor24 ney Act of 1979 and sections 5-501 through 5-505 


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1 of the Uniform Probate Code, as in effect in any 

2 State. 

3 ‘‘(14) INCAPACITY.—The terms ‘incapacity’, ‘in4 capacitated’, or ‘incapacitation’ have the meanings 

5 given to such terms in the Family and Medical 

6 Leave Act of 1968, and regulations prescribed under 

7 such Act.’’. 

8 SEC. 3. FEDERAL STUDENT LOANS. 

9 (a) FEDERAL PLUS LOANS.—Section 428B of the 

10 Higher Education Act of 1965 (20 U.S.C. 1078–2) is 

11 amended by adding at the end the following: 

12 ‘‘(g) DISCLOSURE.—An eligible lender shall disclose 

13 to a prospective borrower, in simple and understandable 

14 terms, at the time the lender provides an application for 

15 a PLUS loan, information with respect to creating a dura16 ble power of attorney to be used in the event of the death 

17 or disability of the borrower (or the student on whose be18 half the loan is borrowed by the parent borrower) includ19 ing the uses and benefits of creating such a power of attor20 ney with respect to student loans and other financial obli21 gations of the borrower.’’. 

22 (b) FEDERAL CONSOLIDATION LOANS.—Section 

23 428C(b)(1)(F) of the Higher Education Act of 1965 (20 

24 U.S.C. 1078–3(b)(1)(F)) is amended— 


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1 (1) by redesignating clauses (vi) and (vii) as 

2 clauses (vii) and (viii), respectively; and 

3 (2) by inserting after clause (v) the following 

4 new clause: 

5 ‘‘(vi) information with respect to cre6 ating an advanced directive (such as a du7 rable power of attorney, living will, etc.) 

8 for financial legal and medical decision9 making in accordance with State law in the 

10 event of the death, incapacitation, or dis11 ability of the borrower, including the uses 

12 and benefits of such an advanced directive 

13 with respect to student loans and other fi14 nancial obligations of the borrower;’’. 

15 (c) ENTRANCE COUNSELING FOR FEDERAL

16 LOANS.—Section 485(l)(2) of the Higher Education Act 

17 of 1965 (20 U.S.C. 1092(l)(2)) is amended by adding at 

18 the end the following: 

19 ‘‘(L) Information on the conditions re20 quired to discharge the loan due to the death, 

21 incapacitation, or disability of the borrower, in 

22 accordance with section 437(a), and an expla23 nation that, in the case of a private education 

24 loan made through a private lender, the bor25 rower, the borrower’s estate, and any consigner 


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1 of a such a private education loan may be obli2 gated to repay the full amount of the loan, re3 gardless of the death, incapacitation, or dis4 ability of the borrower. 

5 ‘‘(M) Information with respect to creating 

6 an advanced directive (such as a durable power 

7 of attorney, living will, etc.) for financial legal 

8 and medical decisionmaking in accordance with 

9 State law a durable power of attorney to be 

10 used in the event of the death, incapacitation, 

11 or disability of the borrower, including an ex12 planation of the uses and benefits of such an 

13 advanced directive with respect to student loans 

14 and other financial obligations of the bor15 rower.’’. 

Æ 


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