II 

116TH CONGRESS 

1ST SESSION S. 2235 

To discharge the qualified loan amounts of each individual, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 23, 2019 

Ms. WARREN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To discharge the qualified loan amounts of each individual, 

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 ‘‘Student Loan Debt 

5 Relief Act of 2019’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—LOAN DISCHARGE AND FORBEARANCE 

Sec. 101. Loan discharge. 

Sec. 102. Automatic administrative forbearance; halting of wage garnishment. 


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Sec. 103. Staying and prohibition on commencement of actions for collection. 

Sec. 104. Ineligibility for Treasury Offset. 

TITLE II—REFINANCING PROGRAMS 

Sec. 201. Refinancing programs. 

TITLE III—DISCHARGEABILITY OF STUDENT LOANS IN 

BANKRUPTCY 

Sec. 301. Dischargeability of student loans in bankruptcy. 

TITLE IV—GENERAL PROVISIONS 

Sec. 401. Report on progress of implementation. 

Sec. 402. Notification to borrowers. 

Sec. 403. Inapplicability of title IV negotiated rulemaking and master calendar 

exception. 

Sec. 404. Definitions. 

1 TITLE I—LOAN DISCHARGE AND 

2 FORBEARANCE 

3 SEC. 101. LOAN DISCHARGE. 

4 (a) IN GENERAL.—Subject to subsection (f), not later 

5 than the date that is 12 months after the date of enact6 ment of this Act, the Secretary of Education shall dis7 charge the qualified loan amount of each individual, with8 out regard to the repayment status of the loan or whether 

9 the loan is in default. 

10 (b) QUALIFIED LOAN AMOUNT.— 

11 (1) IN GENERAL.—The qualified loan amount 

12 of an individual is an amount equal to the lesser 

13 of— 

14 (A) $50,000; and 

15 (B) the aggregate loan obligation on the el16 igible Federal loans of the taxpayer that is out17 standing on the date of enactment of this Act 


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1 or, in the case of such loans issued under sec2 tion 460B of the Higher Education Act of 

3 1965, as added by title II of this Act, on the 

4 date on which such loans are issued under such 

5 section 460B. 

6 (2) LIMITATION BASED ON ADJUSTED GROSS

7 INCOME.—The amount discharged under subsection 

8 (a) with respect to an individual shall be reduced 

9 (but not below zero) by $1 for each $3 (or fraction 

10 thereof) by which the taxpayer’s adjusted gross in11 come exceeds $100,000 (twice such amount in the 

12 case of a joint return) for the most recent taxable 

13 year ending before the date of the enactment of this 

14 Act. 

15 (c) METHOD OF LOAN DISCHARGE.— 

16 (1) IN GENERAL.—To provide the loan dis17 charge required under subsection (a), the Secretary 

18 is authorized to carry out a program— 

19 (A) through the holder of the loan, to as20 sume the obligation to repay the qualified loan 

21 amount for a loan made, insured, or guaranteed 

22 under part B of title IV of the Higher Edu23 cation Act of 1965 (20 U.S.C. 1071 et seq.); 

24 (B) to cancel the qualified loan amount for 

25 a loan made under part D of title IV of the 


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

2 1087a et seq.), or assigned, referred, or trans3 ferred to, or purchased by, the Secretary under 

4 such title IV (20 U.S.C. 1070 et seq.), includ5 ing a Federal Direct Stafford Loan issued 

6 under section 460B of the Higher Education 

7 Act of 1965, as added by title II of this Act; 

8 and 

9 (C) through the institution of higher edu10 cation that made the loan from its student loan 

11 fund established under part E of such title (20 

12 U.S.C. 1087aa et seq.), to assume the obliga13 tion to repay the qualified loan amount for such 

14 loan. 

15 (2) ORDER OF LOAN DISCHARGE.—With re16 spect to an individual with at least 2 eligible Federal 

17 loans, the Secretary shall discharge the loans of the 

18 individual as follows (except as otherwise indicated 

19 by the individual): 

20 (A) In the case in which the individual has 

21 loans with different rates of interest, the loans 

22 should be discharged in descending order by 

23 rate of interest. 

24 (B) In the case in which the individual has 

25 loans with the same rates of interest, the loans 


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1 should be discharged in descending order by 

2 amount of outstanding principal. 

3 (d) EXCLUSION FROM TAXABLE INCOME.—For pur4 poses of the Internal Revenue Code of 1986, in the case 

5 of an individual, gross income does not include any 

6 amount which (but for this subsection) would be includible 

7 in gross income by reason of the discharge (in whole or 

8 in part) of any loan if such discharge was pursuant to 

9 this title. 

10 (e) TAXPAYER INFORMATION.— 

11 (1) IN GENERAL.—The Secretary of the Treas12 ury may, upon written request from the Secretary of 

13 Education, disclose to officers and employees of the 

14 Department of Education return information with 

15 respect to a taxpayer who has received eligible Fed16 eral loans that are outstanding on the date described 

17 in subsection (b)(1)(B). Such return information 

18 shall be limited to— 

19 (A) taxpayer identity information with re20 spect to such taxpayer; 

21 (B) the filing status of such taxpayer; and 

22 (C) the adjusted gross income of such tax23 payer. 

24 (2) RESTRICTION ON USE OF DISCLOSED IN25 FORMATION.—Return information disclosed under 


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1 paragraph (1) may be used by officers and employ2 ees of the Department of Education only for the 

3 purposes of, and to the extent necessary in, estab4 lishing the appropriate qualified loan amount of a 

5 taxpayer. 

6 (f) LONG-TERM SETTLE AND COMPROMISE DIS7 CHARGE AUTHORITY.—Not later than the date that is 24 

8 months after the date of enactment of this Act, the Sec9 retary of Education may use the authority under sections 

10 432(a)(6) and 468(2) of the Higher Education Act of 

11 1965 (20 U.S.C. 1082(a)(6); 1087hh(2)) to discharge 

12 loans under this section beyond the period described in 

13 subsection (a) for— 

14 (1) an individual who, through an appeals proc15 ess established by the Secretary, successfully appeals 

16 a loan discharge determination by the Secretary 

17 under this section; 

18 (2) an individual who, due to special cir19 cumstances, misses a deadline established by the 

20 Secretary in the administration of loan discharges 

21 under this section; or 

22 (3) an individual (or a group of individuals) 

23 who the Secretary determines should have received a 

24 loan discharge or a discharge amount that is dif25 ferent from the amount of loan discharge received 


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1 under this section, except that a loan discharge 

2 amount received under this subsection may not ex3 ceed the qualified loan amount determined for the 

4 individual (or the group of individuals) under sub5 section (b). 

6 (g) PRIVATE STUDENT LOAN DISCHARGE.—Not 

7 later than the date that is 3 months after the date of en8 actment of this Act, the Secretary of Education, in coordi9 nation with the Secretary of the Treasury and the Director 

10 of the Bureau of Consumer Financial Protection, shall un11 dertake a campaign to alert borrowers of private education 

12 loans— 

13 (1) that such borrowers may be eligible to refi14 nance such private loans as Federal Direct Stafford 

15 Loans under section 460B of the Higher Education 

16 Act of 1965, as added by title II of this Act; and 

17 (2) such Federal Direct Stafford Loans may be 

18 eligible for loan discharge under this section. 

19 (h) CREDIT REPORTING.—In the case of a borrower 

20 of an eligible Federal loan that was in default prior to 

21 being discharged under this section and on which, as a 

22 result of such loan discharge, there is no outstanding bal23 ance of principal or interest, the Secretary, guaranty agen24 cy or other holder of the loan shall request any consumer 

25 reporting agency to which the Secretary, guaranty agency 


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1 or holder, as applicable, reported the default of the loan, 

2 to remove the record of the default from the borrower’s 

3 credit history. 

4 (i) MEMBERS OF CONGRESS.—In this section, the 

5 terms ‘‘individual’’ and ‘‘taxpayer’’ do not include a Mem6 ber of Congress. 

7 SEC. 102. AUTOMATIC ADMINISTRATIVE FORBEARANCE; 

8 HALTING OF WAGE GARNISHMENT. 

9 During the period beginning on the date of enactment 

10 of this Act and ending on the date that is 12 months after 

11 such date of enactment, the Secretary of Education— 

12 (1) shall place each borrower of an eligible Fed13 eral loan with an outstanding balance, without any 

14 further action required by the borrower (except that 

15 the borrower may opt-out of this section), on an ad16 ministrative forbearance during which periodic in17 stallments of principal need not be paid, and interest 

18 shall not accrue, on such loan; and 

19 (2) may not issue an order for wage garnish20 ment or withholding under section 488A of the 

21 Higher Education Act of 1965 (20 U.S.C. 1095a) or 

22 section 3720D of title 31, United States Code, ini23 tiate proceedings to collect debt through deductions 

24 from pay under such section 488A or 3720D, or en25 force or otherwise require compliance with a wage 


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1 garnishment or withholding order issued under such 

2 section 488A or 3720D before the date of enactment 

3 of this Act (which shall include staying any related 

4 proceedings). 

5 SEC. 103. STAYING AND PROHIBITION ON COMMENCEMENT 

6 OF ACTIONS FOR COLLECTION. 

7 Until 12 months after the date of enactment of this 

8 Act, no eligible Federal loan may be referred to the Attor9 ney General for any action seeking collection of any 

10 amount owed on that loan and any action pending as of 

11 the date of enactment of this Act shall be stayed. 

12 SEC. 104. INELIGIBILITY FOR TREASURY OFFSET. 

13 Until 12 months after the date of enactment of this 

14 Act, no claim pertaining to an eligible Federal loan may 

15 be certified under section 3716(c)(1) of title 31, United 

16 States Code. 

17 TITLE II—REFINANCING 

18 PROGRAMS 

19 SEC. 201. REFINANCING PROGRAMS. 

20 (a) PROGRAM AUTHORITY.—Section 451(a) of the 

21 Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 

22 amended— 

23 (1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 

24 and 


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1 (2) by inserting ‘‘; and (3) to make loans under 

2 section 460A and section 460B’’ after ‘‘section 

3 459A’’. 

4 (b) REFINANCING PROGRAM.—Part D of title IV of 

5 the Higher Education Act of 1965 (20 U.S.C. 1087a et 

6 seq.) is amended by adding at the end the following: 

7 ‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 

8 LOANS. 

9 ‘‘(a) IN GENERAL.—Beginning not later than 12 

10 months after the date of enactment of the Student Loan 

11 Debt Relief Act of 2019, the Secretary shall establish a 

12 program under which the Secretary automatically refi13 nances loans made under this part in accordance with the 

14 provisions of this section, in order to lower the rate of 

15 interest on such loans. 

16 ‘‘(b) REFINANCING DIRECT LOANS.— 

17 ‘‘(1) FEDERAL DIRECT LOANS.—With respect 

18 to each Federal Direct Stafford Loan, Federal Di19 rect Unsubsidized Stafford Loan, Federal Direct 

20 PLUS Loan, and Federal Direct Consolidation 

21 Loan, for which the first disbursement was made to 

22 a borrower, or the application for the consolidation 

23 loan was received from a borrower, on or before the 

24 date of enactment of the Student Loan Debt Relief 

25 Act of 2019, the Secretary shall, without any further 


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1 action by the borrower (other than under subpara2 graph (C))— 

3 ‘‘(A) discharge the liability on such Fed4 eral Direct Stafford Loan, Federal Direct Un5 subsidized Stafford Loan, Federal Direct PLUS 

6 Loan, or Federal Direct Consolidation Loan; 

7 ‘‘(B) issue to the borrower a new Federal 

8 Direct Stafford Loan, Federal Direct Unsub9 sidized Stafford Loan, Federal Direct PLUS 

10 Loan, or Federal Direct Consolidation Loan, re11 spectively— 

12 ‘‘(i) in an amount equal to the sum of 

13 the unpaid principal, accrued unpaid inter14 est, and late charges of the loan for which 

15 the liability is being discharged under sub16 paragraph (A); and 

17 ‘‘(ii) which has the same terms and 

18 conditions as the original loan, except that 

19 the rate of interest shall be determined 

20 under subsection (c); and 

21 ‘‘(C) provide the borrower an opportunity 

22 to opt-out of the refinancing under this para23 graph. 

24 ‘‘(2) REFINANCING FFEL PROGRAM LOANS AS

25 REFINANCED FEDERAL DIRECT LOANS.— 


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1 ‘‘(A) IN GENERAL.—With respect to each 

2 loan that was made, insured, or guaranteed 

3 under part B and for which the first disburse4 ment was made to a borrower, or the applica5 tion for the consolidation loan was received 

6 from a borrower, before July 1, 2010, the Sec7 retary shall, without any further action by the 

8 borrower (other than to provide the borrower an 

9 opportunity to opt-out of the refinancing under 

10 this paragraph), issue to the borrower a loan 

11 made under this part— 

12 ‘‘(i) in an amount equal to the sum of 

13 the unpaid principal, accrued unpaid inter14 est, and late charges of the loan selected to 

15 be so refinanced; 

16 ‘‘(ii) the proceeds of which shall be 

17 paid to the holder of the loan selected to 

18 be so refinanced to discharge the liability 

19 on such loan; and 

20 ‘‘(iii) which has a rate of interest de21 termined under subsection (c). 

22 ‘‘(B) DESIGNATION OF LOANS.—A loan 

23 issued under this section the proceeds of which 

24 is discharging the liability on a loan made, in25 sured, or guaranteed— 


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1 ‘‘(i) under section 428 shall be a Fed2 eral Direct Stafford Loan; 

3 ‘‘(ii) under section 428B shall be a 

4 Federal Direct PLUS Loan; 

5 ‘‘(iii) under section 428H shall be a 

6 Federal Direct Unsubsidized Stafford 

7 Loan; and 

8 ‘‘(iv) under section 428C shall be a 

9 Federal Direct Consolidation Loan. 

10 ‘‘(c) INTEREST RATES.— 

11 ‘‘(1) IN GENERAL.—The interest rate for Fed12 eral Direct Stafford Loans, Federal Direct Unsub13 sidized Stafford Loans, Federal Direct PLUS 

14 Loans, and Federal Direct Consolidation Loans 

15 issued under this section, shall be a rate equal to— 

16 ‘‘(A) in a case in which the original loan 

17 is a loan under section 428 or 428H, a Federal 

18 Direct Stafford loan, or a Federal Direct Un19 subsidized Stafford Loan, that was issued to an 

20 undergraduate student, the rate for Federal Di21 rect Stafford Loans and Federal Direct Unsub22 sidized Stafford Loans issued to undergraduate 

23 students for the 12-month period beginning on 

24 July 1, 2016, and ending on June 30, 2017; 


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1 ‘‘(B) in a case in which the original loan 

2 is a loan under section 428 or 428H, a Federal 

3 Direct Stafford Loan, or a Federal Direct Un4 subsidized Stafford Loan, that was issued to a 

5 graduate or professional student, the rate for 

6 Federal Direct Unsubsidized Stafford Loans 

7 issued to graduate or professional students for 

8 the 12-month period beginning on July 1, 2016, 

9 and ending on June 30, 2017; 

10 ‘‘(C) in an case in which the original loan 

11 is a loan under section 428B or a Federal Di12 rect PLUS Loan, the rate for Federal Direct 

13 PLUS Loans for the 12-month period begin14 ning on July 1, 2016, and ending on June 30, 

15 2017; and 

16 ‘‘(D) in a case in which the original loan 

17 is a loan under section 428C or a Federal Di18 rect Consolidation Loan, a rate calculated in ac19 cordance with paragraph (2). 

20 ‘‘(2) INTEREST RATES FOR CONSOLIDATION

21 LOANS.— 

22 ‘‘(A) METHOD OF CALCULATION.—To de23 termine the interest rate for a Federal Direct 

24 Federal Consolidation Loan issued under this 

25 section, the Secretary shall— 


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1 ‘‘(i) determine each original loan for 

2 which the liability was discharged by the 

3 proceeds of a loan under section 428C or 

4 a Federal Direct Consolidation Loan, and 

5 calculate the proportion of the unpaid prin6 cipal balance of the loan under section 

7 428C or the Federal Direct Consolidation 

8 Loan that is applicable to each such origi9 nal loan; 

10 ‘‘(ii) use the proportions determined 

11 in accordance with clause (i) and the inter12 est rate applicable for each original loan, 

13 as determined under subparagraph (B), to 

14 calculate the weighted average of the inter15 est rates on the loans consolidated into the 

16 loan under section 428C or the Federal Di17 rect Consolidation Loan; and 

18 ‘‘(iii) apply the weighted average cal19 culated under clause (ii) as the interest 

20 rate for the Federal Direct Consolidation 

21 Loan made under this section and for 

22 which the interest rate is being determined 

23 under this paragraph. 

24 ‘‘(B) INTEREST RATES FOR COMPONENT

25 LOANS.—The interest rate for each original 


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1 loan for which the liability is discharged by the 

2 proceeds of loan made under section 428C or a 

3 Federal Direct Consolidation Loan shall be the 

4 following: 

5 ‘‘(i) The interest rate for any such 

6 original loan made, insured or guaranteed 

7 under section 428 or 428H, or that is a 

8 Federal Direct Stafford Loan or Federal 

9 Direct Unsubsidized Stafford Loan, issued 

10 to an undergraduate student shall be a 

11 rate equal to the lesser of— 

12 ‘‘(I) the rate for Federal Direct 

13 Stafford Loans and Federal Direct 

14 Unsubsidized Stafford Loans issued 

15 to undergraduate students for the 12- 

16 month period beginning on July 1, 

17 2016, and ending on June 30, 2017; 

18 or 

19 ‘‘(II) the interest rate on such 

20 original loan. 

21 ‘‘(ii) The interest rate for any such 

22 original loan made, insured or guaranteed 

23 under section 428 or 428H, or that is a 

24 Federal Direct Stafford Loan, or Federal 

25 Direct Unsubsidized Stafford Loan, issued 


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1 to a graduate or professional student shall 

2 be a rate equal to the lesser of— 

3 ‘‘(I) the rate for Federal Direct 

4 Unsubsidized Stafford Loans issued 

5 to graduate or professional students 

6 for the 12-month period beginning on 

7 July 1, 2016, and ending on June 30, 

8 2017; or 

9 ‘‘(II) the interest rate on the 

10 original loan. 

11 ‘‘(iii) The interest rate for any such 

12 original loan made, insured or guaranteed 

13 under section 428B or that is a Federal 

14 Direct PLUS Loan shall be a rate equal to 

15 the lesser of— 

16 ‘‘(I) the rate for Federal Direct 

17 PLUS Loans for the 12-month period 

18 beginning on July 1, 2016, and end19 ing on June 30, 2017; or 

20 ‘‘(II) the interest rate on the 

21 original loan. 

22 ‘‘(iv) The interest rate for any such 

23 original loan that is a loan under section 

24 428C or a Federal Direct Consolidation 

25 Loan shall be the weighted average of the 


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1 interest rates determined under this sub2 paragraph for each loan for which the li3 ability is discharged by the proceeds of 

4 such consolidation loan. 

5 ‘‘(v) The interest rate for any original 

6 loan for which the liability was discharged 

7 with the proceeds of a loan made under 

8 section 428C or a Federal Direct Consoli9 dation Loan and is not described in clauses 

10 (i) through (iv) shall be the interest rate 

11 on such original loan. 

12 ‘‘(3) FIXED RATE.—The applicable rate of in13 terest determined under paragraph (1) for a loan 

14 issued under this section shall be fixed for the period 

15 of the loan. 

16 ‘‘(d) REPAYMENT PERIODS.—A loan issued under 

17 this section shall not result in the extension of the dura18 tion of the repayment period of the original loan, and the 

19 borrower shall retain the same repayment term that was 

20 in effect on the original loan. Nothing in this paragraph 

21 shall be construed to prevent a borrower from electing a 

22 different repayment plan at any time in accordance with 

23 section 455(d)(3). 

24 ‘‘(e) ORIGINAL LOAN DEFINED.—In this section, the 

25 term ‘original loan’ means a loan for which the liability 


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1 is discharged with the proceeds of a loan issued under this 

2 section. 

3 ‘‘SEC. 460B. REFINANCING OF PRIVATE EDUCATION LOANS. 

4 ‘‘(a) PROGRAM AUTHORIZED.— 

5 ‘‘(1) IN GENERAL.—During the period begin6 ning on the date that is 6 months after the date of 

7 enactment of the Student Loan Debt Relief Act of 

8 2019, and ending on the date that is 9 months after 

9 such date of enactment, the Secretary, in consulta10 tion with the Secretary of the Treasury, shall carry 

11 out a program under which the Secretary, upon re12 ceiving an application from a borrower who has a 

13 loan obligation on an eligible private education loan, 

14 shall issue such borrower a loan under this section 

15 in accordance with the following: 

16 ‘‘(A) The loan issued under this section 

17 shall be in an amount equal to the sum of the 

18 unpaid principal, accrued unpaid interest, and 

19 late charges of the private education loan. 

20 ‘‘(B) The Secretary shall pay the proceeds 

21 of the loan issued under this section to the pri22 vate educational lender (or subsequent holder) 

23 of the private education loan, in order to dis24 charge the borrower and any cosigners from 


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1 any remaining obligation to the lender with re2 spect to the private education loan. 

3 ‘‘(C) The Secretary shall require that the 

4 borrower undergo loan counseling that provides 

5 all of the information and counseling required 

6 under clauses (i) through (viii) of section 

7 485(b)(1)(A) before the carrying out subpara8 graphs (A) and (B) with respect to such bor9 rower. 

10 ‘‘(D) The Secretary shall issue the loan as 

11 a Federal Direct Stafford Loan with a rate of 

12 interest determined under subsection (b). 

13 ‘‘(b) INTEREST RATE.— 

14 ‘‘(1) IN GENERAL.—The interest rate for a 

15 Federal Direct Stafford Loan issued under this sec16 tion shall be— 

17 ‘‘(A) in the case of a Federal Direct Staf18 ford Loan discharging the liability on a private 

19 education loan issued for undergraduate post20 secondary educational expenses, a rate equal to 

21 the rate for Federal Direct Stafford Loans and 

22 Federal Direct Unsubsidized Stafford Loans 

23 issued to undergraduate students for the 12- 

24 month period beginning on July 1, 2016, and 

25 ending on June 30, 2017; and 


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1 ‘‘(B) in the case of a Federal Direct Staf2 ford Loan discharging the liability on a private 

3 education loan issued for graduate or profes4 sional degree postsecondary educational ex5 penses, a rate equal to the rate for Federal Di6 rect Unsubsidized Stafford Loans issued to 

7 graduate or professional students for the 12- 

8 month period beginning on July 1, 2016, and 

9 ending on June 30, 2017. 

10 ‘‘(2) COMBINED UNDERGRADUATE AND GRAD11 UATE STUDY LOANS.—In the case of a Federal Di12 rect Stafford Loan discharging the liability on a pri13 vate education loan issued for both undergraduate 

14 and graduate or professional postsecondary edu15 cational expenses, the interest rate shall be a rate 

16 equal to the rate for Federal Direct PLUS Loans 

17 for the 12-month period beginning on July 1, 2016, 

18 and ending on June 30, 2017. 

19 ‘‘(3) FIXED RATE.—The applicable rate of in20 terest determined under this subsection for a Fed21 eral Direct Stafford Loan issued under this section 

22 shall be fixed for the period of the loan. 

23 ‘‘(c) NO INCLUSION IN AGGREGATE LIMITS.—The 

24 amount of a Federal Direct Stafford Loan issued under 

25 this section, or a Federal Direct Consolidated Loan to the 


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1 extent such loan is used to repay such a Federal Direct 

2 Stafford Loan, shall not be included in calculating a bor3 rower’s annual or aggregate loan limits under section 428 

4 or 428H. 

5 ‘‘(d) PRIVATE EDUCATIONAL LENDER REPORTING

6 REQUIREMENT.— 

7 ‘‘(1) REPORTING REQUIRED.—Not later than 6 

8 months after the date of enactment of the Student 

9 Loan Debt Relief Act of 2019, the Secretary, in con10 sultation with the Secretary of the Treasury and the 

11 Director of the Bureau of Consumer Financial Pro12 tection, shall establish a requirement that private 

13 educational lenders report the data described in 

14 paragraph (2) to the Secretary, to Congress, to the 

15 Secretary of the Treasury, and to the Director of the 

16 Bureau of Consumer Financial Protection, in order 

17 to allow for an assessment of the private education 

18 loan market. 

19 ‘‘(2) CONTENTS OF REPORTING.—The data 

20 that private educational lenders shall report in ac21 cordance with paragraph (1) shall include each of 

22 the following about private education loans (as de23 fined in section 140(a) of the Truth in Lending Act 

24 (15 U.S.C. 1650(a))): 


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1 ‘‘(A) The total amount of private education 

2 loan debt the lender holds. 

3 ‘‘(B) The total number of private edu4 cation loan borrowers the lender serves. 

5 ‘‘(C) The average interest rate on the out6 standing private education loan debt held by the 

7 lender. 

8 ‘‘(D) The proportion of private education 

9 loan borrowers who are in default on a loan 

10 held by the lender. 

11 ‘‘(E) The proportion of the outstanding 

12 private education loan volume held by the lend13 er that is in default. 

14 ‘‘(F) The proportions of outstanding pri15 vate education loan borrowers who are 30, 60, 

16 and 90 days delinquent. 

17 ‘‘(G) The proportions of outstanding pri18 vate education loan volume that is 30, 60, and 

19 90 days delinquent. 

20 ‘‘(e) SUNSET.—The authority to issue loans under 

21 this section shall expire on the date that is 8 months after 

22 the date of enactment of the Student Loan Debt Relief 

23 Act of 2019. 

24 ‘‘(f) DEFINITIONS.—In this section: 


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1 ‘‘(1) PRIVATE EDUCATIONAL LENDER.—The 

2 term ‘private educational lender’ has the meaning 

3 given the term in section 140(a) of the Truth in 

4 Lending Act (15 U.S.C. 1650(a)). 

5 ‘‘(2) ELIGIBLE PRIVATE EDUCATION LOAN.— 

6 The term ‘eligible private education loan’ means a 

7 private education loan, as defined in section 140(a) 

8 of the Truth in Lending Act (15 U.S.C. 1650(a)), 

9 that— 

10 ‘‘(A) was disbursed to the borrower on or 

11 before the date of enactment of the Student 

12 Loan Debt Relief Act of 2019; and 

13 ‘‘(B) was for the borrower’s own postsec14 ondary educational expenses for an eligible pro15 gram at an institution of higher education par16 ticipating in the loan program under this part, 

17 as of the date that the loan was disbursed.’’. 

18 (c) INCOME-CONTINGENT REPAYMENT.—Section 

19 455(d)(1)(D) of the Higher Education Act of 1965 (20 

20 U.S.C. 1087e(d)(1)(D)) is amended by inserting before 

21 the semicolon at the end the following: ‘‘, and in calcu22 lating the period of time during which a borrower of a 

23 loan issued under section 460A has made monthly pay24 ments on such loan for purposes of the plan described in 

25 this subparagraph, the Secretary shall treat each monthly 


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1 payment that otherwise meets the requirements of such 

2 plan and that was made on a loan for which the liability 

3 is discharged by the proceeds of such loan issued under 

4 section 460A, as a monthly payment made on such loan 

5 issued under section 460A’’. 

6 (d) PUBLIC SERVICE LOAN FORGIVENESS.—Section 

7 455(m) of the Higher Education Act of 1965 (20 U.S.C. 

8 1087e(m)) is amended— 

9 (1) by redesignating paragraphs (3) and (4) as 

10 paragraphs (4) and (5), respectively; and 

11 (2) by inserting after paragraph (2) the fol12 lowing: 

13 ‘‘(3) TREATMENT OF LOANS ISSUED UNDER

14 SECTION 460A.—Notwithstanding paragraph (1), in 

15 determining the number of monthly payments made 

16 under paragraph (1) on an eligible Federal Direct 

17 Loan issued under section 460A the proceeds of 

18 which discharges the liability on a loan made under 

19 this part, the Secretary shall treat each monthly 

20 payment made under paragraph (1) on the loan be21 fore the liability on such loan was so discharged as 

22 a monthly payment made on such eligible Federal 

23 Direct Loan.’’; 


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1 (e) INCOME-BASED REPAYMENT.—Section 493C of 

2 the Higher Education Act of 1965 (20 U.S.C. 1098e) is 

3 amended by adding at the end the following: 

4 ‘‘(f) TREATMENT OF REFINANCED LOANS.—In cal5 culating the period of time during which a borrower of 

6 a loan issued under section 460A has made monthly pay7 ments on such loan for purposes of subsection (b)(7), the 

8 Secretary shall treat each monthly payment that otherwise 

9 meets the requirements of this section and that was made 

10 on a loan for which the liability is discharged by the pro11 ceeds of such loan issued under section 460A, as a month12 ly payment made on such loan issued under section 

13 460A.’’. 

14 TITLE III—DISCHARGEABILITY 

15 OF STUDENT LOANS IN BANK16 RUPTCY 

17 SEC. 301. DISCHARGEABILITY OF STUDENT LOANS IN 

18 BANKRUPTCY. 

19 (1) EXCEPTION TO DISCHARGE.—Section 

20 523(a) of title 11 of the United States Code is 

21 amended by striking paragraph (8). 

22 (2) CONFORMING AMENDMENT.—Section 

23 1328(a)(2) of title 11 of the United States Code is 

24 amended by striking ‘‘(8),’’. 


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1 TITLE IV—GENERAL 

2 PROVISIONS 

3 SEC. 401. REPORT ON PROGRESS OF IMPLEMENTATION. 

4 Not later than the date that is 6 months after the 

5 date of enactment of this Act, the Secretary of Education 

6 and the Secretary of the Treasury shall, jointly, submit 

7 to Congress a report on the progress of the implementa8 tion of the provisions of titles I and II. 

9 SEC. 402. NOTIFICATION TO BORROWERS. 

10 (a) IN GENERAL.—Not later than the date that is 

11 3 months after the date of enactment of this Act— 

12 (1) the Secretary of Education— 

13 (A) shall take such steps as may be nec14 essary to notify borrowers of an eligible Federal 

15 loan of the loan discharge available under title 

16 I, including the applicable deadlines; 

17 (B) in coordination with the Secretary of 

18 the Treasury and the Director of the Bureau of 

19 Consumer Financial Protection, shall undertake 

20 a campaign to notify borrowers of loans made, 

21 insured, or guaranteed under part B or D of 

22 title IV of the Higher Education Act of 1965 

23 that such borrowers may be eligible to refinance 

24 such loans at a lower rate of interest under sec25 tion 460A of the Higher Education Act of 


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1 1965, as added by title II of this Act, which 

2 campaign shall include— 

3 (i) developing consumer information 

4 materials about the availability of such re5 financing; and 

6 (ii) requiring servicers of such loans 

7 to provide such consumer information to 

8 borrowers in a manner determined appro9 priate by the Secretary, in consultation 

10 with the Director of the Bureau of Con11 sumer Financial Protection; and 

12 (C) in coordination with the Secretary of 

13 the Treasury and the Director of the Bureau of 

14 Consumer Financial Protection, shall undertake 

15 a campaign to alert borrowers of private edu16 cation loans— 

17 (i) that such borrowers may be eligible 

18 to refinance such private loans as Federal 

19 Direct Stafford Loans under section 460B 

20 of the Higher Education Act of 1965, as 

21 added by title II of this Act; and 

22 (ii) such Federal Direct Stafford 

23 Loans may be eligible for loan discharge 

24 under title I of this Act; and 


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1 (2) the Secretary of Health and Human Serv2 ices, in consultation with the Secretary of Edu3 cation, shall take such steps as may be necessary to 

4 inform borrowers of a loan made, insured, or guar5 anteed by the Department of Health and Human 

6 Services that is eligible for consolidation under sec7 tion 455(g) of the Higher Education Act of 1965 

8 (20 U.S.C. 1087e(g)), that the— 

9 (A) borrower may be eligible for a Federal 

10 Direct Consolidation Loan under such section 

11 455(g); and 

12 (B) such Federal Direct Consolidation 

13 Loan may be eligible for loan discharge under 

14 title I of this Act. 

15 (b) NOTIFICATION BY PRIVATE EDUCATION LOAN

16 HOLDERS.—Each holder of a private education loan shall, 

17 not later than the date that is 3 months after the date 

18 of enactment of this Act, notify the borrower of such pri19 vate education loan that the borrower may be eligible to 

20 refinance the private education loan as a Federal Direct 

21 Stafford Loan under section 460B of the Higher Edu22 cation Act of 1965, and such Federal Direct Stafford 

23 Loan may be eligible for loan discharge under title I of 

24 this Act. 


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1 SEC. 403. INAPPLICABILITY OF TITLE IV NEGOTIATED 

2 RULEMAKING AND MASTER CALENDAR EX3 CEPTION. 

4 Sections 482(c) and 492 of the Higher Education Act 

5 of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to 

6 this Act or any amendments made by this Act, or to any 

7 regulations promulgated under this Act or under such 

8 amendments. 

9 SEC. 404. DEFINITIONS. 

10 In this Act: 

11 (1) ELIGIBLE FEDERAL LOAN.—The term ‘‘eli12 gible Federal loan’’ means— 

13 (A) a loan made, insured, or guaranteed 

14 under title IV of the Higher Education Act of 

15 1965 (20 U.S.C. 1071 et seq.) (other than a 

16 loan described in subparagraph (B)) on or be17 fore the date of enactment of this Act; or 

18 (B) a Federal Direct Stafford Loan issued 

19 under section 460B of the Higher Education 

20 Act of 1965, as added by title II of this Act, 

21 on a date that is not later than 9 months after 

22 the date of enactment of this Act. 

23 (2) PRIVATE EDUCATION LOAN.—The term 

24 ‘‘private education loan’’ has the meaning given such 

25 term in section 140(a) of the Truth in Lending Act 

26 (15 U.S.C. 1650(a)). 


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1 (3) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Education. 

3 (4) TAXPAYER.—The term ‘‘taxpayer’’ has the 

4 meaning given such term in section 7701 of the In5 ternal Revenue Code of 1986. 

Æ 


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