paragraphs (H), (I), (K), (L), (M), and (N) of sec-
tion 485(l)(2) of the Higher Education Act of 1965 
(20 U.S.C. 1092(l)(2)). 
‘‘(6) MODEL FORM.—The Bureau shall publish 
a model form under section 105 for describing a co- 
signer’s obligation for purposes of paragraph (1). 
‘‘(7) DEFINITION OF DEATH, DISABILITY, OR 
INABILITY TO ENGAGE IN ANY SUBSTANTIAL GAIN-
FUL ACTIVITY.—For the purposes of this subsection 
with respect to a borrower or co-signer, the term 
‘death, disability, or inability to engage in any sub-
stantial gainful activity’— 
‘‘(A) means any condition described in sec-
tion 437(a) of the Higher Education Act of 
1965 (20 U.S.C. 1087(a)); and 
‘‘(B) shall be interpreted by the Bureau in 
such a manner as to conform with the regula-
tions prescribed by the Secretary of Education 
under section 437(a) of such Act (20 U.S.C. 
1087(a)) to the fullest extent practicable, in-
cluding safeguards to prevent fraud and 
abuse.’’. 
(b) DEFINITIONS.—Subsection (a) of section 140 of 
the Truth in Lending Act (15 U.S.C. 1650(a)) is amend-
ed— 
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(1) by redesignating paragraphs (1) through 
(8) as paragraphs (2) through (9), respectively; and 
(2) by inserting before paragraph (2) (as redes-
ignated by paragraph (1)) the following: 
‘‘(1) the term ‘co-signer’— 
‘‘(A) means any individual who is liable for 
the obligation of another without compensation, 
regardless of how designated in the contract or 
instrument; 
‘‘(B) includes any person whose signature 
is requested as condition to grant credit or to 
forbear on collection; and 
‘‘(C) does not include a spouse of an indi-
vidual referred to in subparagraph (A) whose 
signature is needed to perfect the security inter-
est in the loan;’’. 
(c) RULEMAKING.—Not later than the end of the 1- 
year period following the date of the enactment of this 
Act, the Bureau of Consumer Financial Protection shall 
issue regulations to carry out section 140(g) of the Truth 
in Lending Act. 
SEC. 3. FEDERAL STUDENT LOANS. 
(a) COUNSELING INFORMATION.—Section 485(l)(2) 
of the Higher Education Act of 1965 (20 U.S.C. 
1092(l)(2)) is amended by adding at the end the following: 
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‘‘(L) Information on the conditions re-
quired to discharge the loan due to the death, 
disability, or inability to engage in any substan-
tial gainful activity of the borrower in accord-
ance with section 437(a). 
‘‘(M) Any repayment, refinance, deferment, 
forbearance, or forgiveness opportunities avail-
able to the borrower, or co-signer, in the event 
of either individual’s death, disability, or inabil-
ity to engage in any substantial gainful activity. 
‘‘(N) The effect that the death, disability, 
or inability to engage in any substantial gainful 
activity of the borrower would have on the obli-
gations of the borrower and any co-signer of the 
loan.’’. 
(b) DESIGNATION OF INDIVIDUAL TO ACT ON BE-
HALF OF THE BORROWER.—Section 484 of the Higher 
Education Act of 1965 (20 U.S.C. 1091) is amended— 
(1) in subsection (a), by striking paragraph (4) 
and inserting the following: 
‘‘(4) file with the Secretary, as part of the 
original financial aid application process, a certifi-
cation, which need not be notarized, but which— 
‘‘(A) shall include— 
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‘‘(i) a statement of educational pur-
pose stating that the money attributable to 
such grant, loan, or loan guarantee will be 
used solely for expenses related to attend-
ance or continued attendance at such insti-
tution; and 
‘‘(ii) such student’s social security 
number; and 
‘‘(B) may include a designation by such 
student of an individual who shall have the 
legal authority to act on behalf of the student 
with respect to any loan to the student under 
this title in the event of the student’s death, 
disability, or inability to engage in any substan-
tial gainful activity;’’; and 
(2) by adding at the end the following: 
‘‘(u) OPTION TO DESIGNATE INDIVIDUAL TO ACT ON 
BEHALF
OF
THE BORROWER
IN CLEAR
AND CON-
SPICUOUS MANNER.—The option for a student to make 
a designation described in subsection (a)(4)(B) shall be 
provided in a clear and conspicuous manner to the stu-
dent.’’. 
SEC. 4. RULE OF CONSTRUCTION. 
Nothing in this Act, or an amendment made by this 
Act, shall be construed to adversely affect the eligibility 
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of a student to receive any grant, loan, or work assistance 
under part C or part G of title IV of the Higher Education 
Act of 1965 (42 U.S.C. 2751 et seq. and 20 U.S.C. 1088 
et seq.) based on a designation, or lack thereof, under sec-
tion 484(a)(4)(B) of that Act, as added by section 3(b) 
of this Act. 
Æ 
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