I 
116TH CONGRESS 
2D SESSION 
H. R. 8316 
To direct the Secretary of Education to provide relief to borrowers of student 
loans for whom the Department of Education found misrepresentation 
by the institution of higher education or a State attorney general has 
asserted a right to borrower defense discharge. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2020 
Mr. TAKANO introduced the following bill; which was referred to the 
Committee on Education and Labor 
A BILL 
To direct the Secretary of Education to provide relief to 
borrowers of student loans for whom the Department 
of Education found misrepresentation by the institution 
of higher education or a State attorney general has as-
serted a right to borrower defense discharge. 
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 ‘‘Coronavirus Emer-
gency Borrower Defense Act of 2020’’ or the ‘‘Coronavirus 
E-BD Act of 2020’’. 
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SEC. 2. EMERGENCY BORROWER DEFENSE. 
(a) EMERGENCY BORROWER DEFENSE.—An eligible 
borrower, or parent borrower who took out an eligible loan 
on behalf of an eligible borrower, shall be entitled to relief 
on such loan pursuant to this section. 
(b) ELIGIBLE BORROWER; ELIGIBLE LOAN.—In this 
section: 
(1) ELIGIBLE BORROWER.— 
(A) IN GENERAL.—The term ‘‘eligible bor-
rower’’ means— 
(i) a borrower covered by Department 
of Education findings made on or before 
the date of enactment of this section 
against an institution of higher education 
for job placement rate misrepresentation; 
(ii) a borrower on whose behalf a 
State attorney general has asserted a right 
to borrower defense discharge if the asser-
tion was made by the State attorney gen-
eral to the Secretary of Education on or 
before the date of enactment of this sec-
tion; or 
(iii) a borrower who— 
(I) was subject to a misrepresen-
tation made by the institution of high-
er education that the borrower at-
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tended related to guaranteed employ-
ment or transferability of credits 
where such misrepresentation was es-
tablished by the Department of Edu-
cation in findings made on or before 
the date of enactment of this section; 
and 
(II) has asserted being subject to 
such misrepresentation in a borrower 
defense application to the Secretary of 
Education. 
(B) ELIGIBILITY.—A borrower— 
(i) described in clause (i) or (ii) of 
subparagraph (A), shall be an eligible bor-
rower whether or not the borrower has ap-
plied for borrower defense and whether or 
not the borrower’s claim has been adju-
dicated, if the borrower has not previously 
received complete relief on the eligible loan 
based on the borrower defense; and 
(ii) described in subparagraph (A)(iii), 
shall be an eligible borrower whether or 
not the borrower’s claim has been adju-
dicated, so long as they have not previously 
received complete relief on their Federal 
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student loans based on their borrower de-
fense. 
(2) ELIGIBLE LOAN.—The term ‘‘eligible loan’’ 
means a loan made, insured, or guaranteed under 
part B or D of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.). 
(c) RELIEF.—With respect to— 
(1) an eligible borrower described in clause (i) 
or (ii) of subsection (b)(1)(A), or an eligible bor-
rower described in subsection (b)(1)(A)(iii) who ap-
plied for borrower defense prior to the date of enact-
ment of this section, the Secretary of Education 
shall— 
(A) not later than 30 days after the date 
of enactment of this section, discharge the bor-
rower, or parent borrower who took out an eli-
gible loan on behalf of such borrower, of the full 
obligation to repay the eligible loan (including 
associated interest, costs, and fees that the bor-
rower or parent borrower would otherwise be 
obligated to pay); 
(B) not later than 45 days after the date 
of enactment of this section, reimburse the bor-
rower, or parent borrower who took out an eli-
gible loan on behalf of such borrower, for 
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amounts paid toward the loan voluntarily or 
through enforced collection; 
(C) not later than 60 days after the date 
of enactment of this section, report the dis-
charge under this section to all consumer re-
porting agencies to which the Secretary pre-
viously reported the status of the loan, so as to 
delete all adverse credit history assigned to the 
loan; and 
(D) not later than 60 days after the date 
of enactment of this section, no longer consider 
a borrower, or parent borrower who took out a 
loan on behalf of such borrower, who has de-
faulted on a loan discharged under this section 
to be in default on the discharged loan; and 
(2) an eligible borrower described in subsection 
(b)(1)(A)(iii) who did not apply for borrower defense 
prior to the date of enactment of this section, the 
Secretary of Education shall— 
(A) not later than 30 days after the date 
such borrower applies for borrower defense, dis-
charge the borrower, or parent borrower who 
took out an eligible loan on behalf of such bor-
rower, of the full obligation to repay the eligible 
loan (including associated interest, costs, and 
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fees that the borrower or parent borrower would 
otherwise be obligated to pay); 
(B) not later than 45 days after such bor-
rower applies for borrower defense, reimburse 
the borrower, or parent borrower who took out 
an eligible loan on behalf of such borrower, for 
amounts paid toward the loan voluntarily or 
through enforced collection; 
(C) not later than 60 days after such bor-
rower applies for borrower defense, report the 
discharge under this section to all consumer re-
porting agencies to which the Secretary pre-
viously reported the status of the loan, so as to 
delete all adverse credit history assigned to the 
loan; and 
(D) not later than 60 days after such bor-
rower applies for borrower defense, no longer 
consider a borrower, or parent borrower who 
took out a loan on behalf of such borrower, who 
has defaulted on a loan discharged under this 
section to be in default on the discharged loan. 
(d) NOTIFICATION.—With respect to— 
(1) an eligible borrower described in clause (i) 
or (ii) of subsection (b)(1)(A), an eligible borrower 
described in subsection (b)(1)(A)(iii) who applied for 
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borrower applies for borrower defense, notify such 
borrower or parent borrower in writing of— 
(A) the relief to which the borrower is enti-
tled pursuant to subsection (c); 
(B) the time in which such relief will be 
provided pursuant to subsection (c); 
(C) the borrower’s eligibility to receive as-
sistance under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.) after re-
ceiving relief pursuant to subsection (c); and 
(D) any further relief to such borrower or 
parent borrower as the Secretary of Education 
determines is appropriate. 
(e) INSTITUTIONAL ACCOUNTABILITY.—For a dis-
charge granted under this section, the Secretary of Edu-
cation shall, as applicable, initiate an appropriate pro-
ceeding to require the institution of higher education 
whose act or omission resulted in the discharge to repay 
to the Secretary of Education the amount discharged 
whether by offset, claim on a letter of credit, or other pro-
tection provided by the institution of higher education. 
Æ 
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