IB 
Union Calendar No. 565 
116TH CONGRESS 
2D SESSION 
H. R. 4545 
[Report No. 116–682, Part I] 
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 jurisdic-
tion of the committee concerned 
DECEMBER 21, 2020 
Additional sponsors: Mr. CASTEN of Illinois, Mr. SHERMAN, Mr. PALLONE, 
and Mr. KILDEE 
DECEMBER 21, 2020 
Reported from the Committee on Financial Services with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 21, 2020 
Committee on Ways and Means discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on September 27, 2019] 
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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. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Private Loan Disability 
Discharge Act of 2019’’. 
SEC. 2. PROTECTIONS FOR OBLIGORS AND COSIGNERS IN 
CASE OF DEATH OR TOTAL AND PERMANENT 
DISABILITY. 
(a) IN GENERAL.—Section 140(g) of the Truth in 
Lending Act (15 U.S.C. 1650(g)) is amended— 
(1) in paragraph (2)— 
(A) in the heading, by striking ‘‘IN CASE OF 
DEATH OF BORROWER’’; 
(B) in subparagraph (A), by inserting after 
‘‘of the death’’, the following: ‘‘or total and per-
manent disability’’; and 
(C) in subparagraph (C), by inserting after 
‘‘of the death’’, the following: ‘‘or total and per-
manent disability’’; and 
(2) by adding at the end the following: 
‘‘(3) DISCHARGE IN CASE OF DEATH OR TOTAL 
AND
PERMANENT
DISABILITY
OF
BORROWER.—The 
holder of a private education loan shall, when notified 
of the death or total and permanent disability of a 
student obligor, discharge the liability of the student 
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obligor on the loan and may not, after such notifica-
tion— 
‘‘(A) attempt to collect on the outstanding 
liability of the student obligor; and 
‘‘(B) in the case of total and permanent dis-
ability, monitor the disability status of the stu-
dent obligor at any point after the date of dis-
charge. 
‘‘(4) TOTAL
AND
PERMANENT
DISABILITY
DE-
FINED.—For the purposes of this subsection and with 
respect to an individual, the term ‘total and perma-
nent disability’ means the individual is totally and 
permanently disabled, as such term is defined in sec-
tion 685.102(b) of title 34 of the Code of Federal Reg-
ulations. 
‘‘(5) PRIVATE DISCHARGE IN CASES OF CERTAIN 
DISCHARGE FOR DEATH OR DISABILITY.—The holder 
of a private education loan shall, when notified of the 
discharge of liability of a student obligor on a loan 
described under section 108(f)(5)(A) of the Internal 
Revenue Code of 1986, discharge any liability of the 
student obligor (and any cosigner) on any private 
education loan which the private education loan hold-
er holds and may not, after such notification— 
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‘‘(A) attempt to collect on the outstanding 
liability of the student obligor; and 
‘‘(B) in the case of total and permanent dis-
ability, monitor the disability status of the stu-
dent obligor at any point after the date of dis-
charge.’’. 
(b) TAX LIABILITY.—Section 108(f)(5)(A) of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 108(f)(5)(A)) is 
amended— 
(1) by striking ‘‘, and before January 1, 2026’’; 
(2) in clause (ii), by striking ‘‘or’’; 
(3) by redesignating clause (iii) as clause (iv); 
and 
(4) by inserting after clause (ii) the following: 
‘‘(iii) pursuant to paragraph (3) or (5) 
of section 140(g) of the Truth in Lending 
Act, or’’. 
(c) RULEMAKING.—The Director of the Bureau of Con-
sumer Financial Protection may issue rules to implement 
the amendments made by subsection (a) as the Director de-
termines appropriate. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect 1 year after the date of the enact-
ment of this Act. 
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