I 
117TH CONGRESS 
1ST SESSION H. R. 2498 
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 
APRIL 14, 2021 
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 
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. 
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 2021’’. 
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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 noti-
fied of the death or total and permanent disability 
of a student obligor, discharge the liability of the 
student obligor on the loan and may not, after such 
notification— 
‘‘(A) attempt to collect on the outstanding 
liability of the student obligor; and 
‘‘(B) in the case of total and permanent 
disability, monitor the disability status of the 
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student obligor at any point after the date of 
discharge. 
‘‘(4) TOTAL AND PERMANENT DISABILITY DE-
FINED.—For the purposes of this subsection and 
with respect to an individual, the term ‘total and 
permanent disability’ means the individual is totally 
and permanently disabled, as such term is defined in 
section 685.102(b) of title 34 of the Code of Federal 
Regulations. 
‘‘(5) PRIVATE DISCHARGE IN CASES OF CER-
TAIN DISCHARGE FOR DEATH OR DISABILITY.—The 
holder of a private education loan shall, when noti-
fied 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 li-
ability of the student obligor (and any cosigner) on 
any private education loan which the private edu-
cation loan holder holds and may not, after such no-
tification— 
‘‘(A) attempt to collect on the outstanding 
liability of the student obligor; and 
‘‘(B) in the case of total and permanent 
disability, monitor the disability status of the 
student obligor at any point after the date of 
discharge.’’. 
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(b) TAX LIABILITY.—Section 108(f)(5)(A) of the In-
ternal 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 Lend-
ing Act, or’’. 
(c) RULEMAKING.—The Director of the Bureau of 
Consumer Financial Protection may issue rules to imple-
ment the amendments made by subsection (a) as the Di-
rector determines appropriate. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 1 year after the date of the 
enactment of this Act. 
Æ 
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