Student Borrower HELP Act of 2016

To amend the Truth in Lending Act to provide private education loan forgiveness for certain borrowers, to require disclosures related to private education loan default rates, and for other purposes. 1. Short title This Act may be cited as the Student Borrower Higher Education Lending Protection Act of 2016 Student Borrower HELP Act of 2016 2. Private education loan forgiveness for deceased or disabled students (a) Amendments to TILA Section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 (g) Deferment or discharge of private education loan (1) Temporary Disability A student borrower of a private education loan shall not be obligated to make payments on the loan, and interest shall not accrue on the loan, during the period in which the student borrower is determined to be under a disability (as defined in section 216(i) or 223(d) of the Social Security Act ( 42 U.S.C. 416(i) (2) Death or total and permanent disability If a student borrower of a private education loan dies or becomes totally or permanently disabled (as determined by the Secretary of Education in accordance with section 437(a)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1087(a)(1) . (b) Exclusion from gross income Section 108(f)(1) (1) by striking the period at the end and inserting , or (2) by striking if such discharge was pursuant to a provision if such discharge was pursuant to— (A) a provision , and (3) by adding at the end the following: (B) section 140(g)(2) of the Truth in Lending Act. . 3. Required disclosures of default rates for private education loans Section 128(e) of the Truth in Lending Act ( 15 U.S.C. 1638(e) (1) in paragraph (1)— (A) in subparagraph (Q), by striking and (B) by redesignating subparagraph (R) as subparagraph (S); and (C) by inserting after subparagraph (Q) the following new subparagraph: (R) the number of private education loans offered by the private educational lender and the number and rate of default on such loans made by the lender; and ; (2) in paragraph (2)— (A) in subparagraph (O), by striking and (B) by redesignating subparagraph (P) as subparagraph (Q); and (C) by inserting after subparagraph (O) the following new subparagraph: (P) the number of private education loans offered by the private educational lender and the number and rate of default on such loans made by the lender; and ; and (3) in paragraph (4), by striking (M) through (P) (M) through (Q) 4. Effective date; applicability This Act and the amendments made by this Act— (1) shall take effect on the date that is 1 year after the date of the enactment of this Act; and (2) shall only apply to private education loans (as defined in section 140(a) of the Truth in Lending Act ( 15 U.S.C. 1650(a)

Summary: Student Borrower Higher Education Lending Protection Act of 2016 or the Student Borrower HELP Act of 2016 This bill amends the Truth in Lending Act to provide to student borrowers of private education loans: (1) loan payment deferments without interest accruing during any period in which the student borrower is temporarily disabled, and (2) loan discharges if a student borrower dies or becomes totally or permanently disabled. If a student borrower dies or becomes totally or permanently disabled, the student borrower, any cosigner on the loan, or the estate of either the student borrower or the cosigner shall not be obligated to make any additional loan payments. The Internal Revenue Code is amended to exclude from an individual's gross income (which would otherwise include cancellation of debt as income) amounts based on the discharge of a student loan under this bill. An individual is therefore not subject to tax liability for the discharge of student loan debt under this bill. Private educational lenders must disclose to borrowers the number of private education loans they offer and the number and rate of defaults on such loans.