I 
114TH CONGRESS 
1ST SESSION H. R. 3948 
To amend the Truth in Lending Act to include requirements for the transfer 
of servicing of postsecondary education loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 5, 2015 
Mr. DEUTCH introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on Edu-
cation and the Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Truth in Lending Act to include requirements 
for the transfer of servicing of postsecondary education 
loans, 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 ‘‘Student Loan Trans-
fers Disclosure Act of 2015’’. 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
SEC. 2. IMPROVED CONSUMER PROTECTIONS FOR STU-
DENT LOAN SERVICING. 
(a) IN GENERAL.—Chapter 2 of title I of the Truth 
in Lending Act (15 U.S.C. 1601 et seq.) is amended by 
adding at the end the following new section: 
‘‘§ 140B. Transfer of servicing of postsecondary edu-
cation loans 
‘‘(a) TRANSFER OF SERVICING.— 
‘‘(1) DISCLOSURE REQUIRED.—A postsecondary 
education lender shall disclose to each person who 
applies for a postsecondary education loan, at the 
time of application for such loan, whether there may 
be a transfer of servicing of such loan at any time 
during which a balance is due on such loan. 
‘‘(2) NO
LIABILITY.—A postsecondary edu-
cation lender shall not be liable to a borrower for 
failure to comply with paragraph (1) if the applica-
tion for a postsecondary education loan was made 
before the rules or regulations established under 
subsection (f) take effect. 
‘‘(b) NOTICE BY TRANSFEROR SERVICER AT TIME OF 
TRANSFER OF SERVICING.— 
‘‘(1) IN GENERAL.—A transferor servicer shall 
notify the borrower under a postsecondary education 
loan of any transfer of student loan servicing for the 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
postsecondary education loan. Such notice shall be 
made to the borrower— 
‘‘(A) not later than 15 days before the ef-
fective date of transfer of the student loan serv-
icing; or 
‘‘(B) not more than 30 days after the ef-
fective date of transfer of the student loan serv-
icing, if the transfer of such servicing is pre-
ceded by— 
‘‘(i) termination of the contract for 
such servicing for cause; 
‘‘(ii) commencement of bankruptcy 
proceedings of the transferor servicer; or 
‘‘(iii) any other situation in which the 
Bureau determines that such exception is 
warranted. 
‘‘(2) CONTENTS
OF
NOTICE.—The notice re-
quired under paragraph (1) shall be made in writing 
and, if the transferor servicer has an email address 
for the borrower, sent by email, and shall include— 
‘‘(A) the effective date of the transfer; 
‘‘(B) the name, address, website, and toll- 
free or collect-call telephone number of the 
transferee servicer; 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(C) a toll-free or collect-call telephone 
number for an individual employed by the 
transferor servicer, or the office or department 
of, the transferor servicer that the borrower 
may contact for inquiries relating to the trans-
fer of servicing; 
‘‘(D) the name and toll-free or collect-call 
telephone number for an individual employed by 
the transferee servicer, or the office or depart-
ment of, the transferee servicer that the bor-
rower may contact for inquiries relating to the 
transfer of servicing; 
‘‘(E) the date on which the transferor 
servicer will stop accepting payments relating to 
the postsecondary education loan to be trans-
ferred and the date on which the transferee 
servicer will begin to accept such payments; 
‘‘(F) a statement that the transfer of stu-
dent loan servicing of the postsecondary edu-
cation loan does not affect any term or condi-
tion of the postsecondary education loan other 
than terms directly related to such student loan 
servicing; 
‘‘(G) a statement disclosing— 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(i) whether borrower authorization 
for recurring electronic funds transfers will 
be transferred to the transferee servicer; 
and 
‘‘(ii) if any such recurring electronic 
funds transfers cannot be transferred, in-
formation as to how the borrower may es-
tablish new recurring electronic funds 
transfers in connection with transfer of 
servicing to the transferee servicer; 
‘‘(H) a statement disclosing— 
‘‘(i) the application of all payments 
and charges relating to the postsecondary 
education loan to be transferred as of the 
effective date of the transfer, including— 
‘‘(I) the date the last payment of 
the borrower was received; 
‘‘(II) the date the last late fee, 
arrearage, or other charge was ap-
plied; and 
‘‘(III) the amount of the last 
payment allocated to principal, inter-
est, and other charges; 
‘‘(ii) the status of such loan as of the 
effective date of the transfer, including 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
whether the borrower is in default on the 
loan; 
‘‘(iii) whether any application for an 
alternative repayment arrangement sub-
mitted by the borrower is pending; and 
‘‘(iv) an itemization and explanation 
for all arrearages claimed to be due as of 
the effective date of the transfer; 
‘‘(I) a detailed description of any benefit, 
alternative repayment arrangement, or other 
term or condition arranged between the trans-
feror servicer and the borrower that is not in-
cluded in the terms of the loan agreement; 
‘‘(J) a detailed description of any item 
under subparagraph (H) that will not apply 
upon transfer, including an explanation of why 
such item will not apply; and 
‘‘(K) information on how to file a com-
plaint against the transferor servicer with the 
Bureau. 
‘‘(3) NOTICE
BY
TRANSFEREE
SERVICER
AT 
TIME OF TRANSFER OF SERVICING.— 
‘‘(A) IN GENERAL.—A transferee servicer 
shall notify the borrower under a postsecondary 
education loan, in writing, of any transfer of 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
student loan servicing of a postsecondary edu-
cation loan. Such notice shall be made to the 
borrower— 
‘‘(i) not later than 15 days before the 
effective date of transfer of the student 
loan servicing; or 
‘‘(ii) not more than 30 days after the 
effective date of transfer of the student 
loan servicing, if the transfer of such serv-
icing is preceded by— 
‘‘(I) termination of the contract 
for such servicing for cause; 
‘‘(II) commencement of bank-
ruptcy proceedings of the transferor 
servicer; or 
‘‘(III) any other situation in 
which the Bureau determines that 
such exception is warranted. 
‘‘(B) CONTENTS OF NOTICE.—The notice 
required under subparagraph (A) shall be made 
in the same manner and include the same infor-
mation, as applicable, as described in paragraph 
(2). 
‘‘(c) TREATMENT OF IMPROPERLY RECEIVED LOAN 
PAYMENTS DURING TRANSFER PERIOD.— 
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(1) IN GENERAL.—During the 60-day period 
beginning on the effective date of transfer relating 
to a postsecondary education loan to be transferred, 
a late fee may not be imposed on the borrower with 
respect to any payment on such loan, and no such 
payment may be treated as late for any other pur-
poses if— 
‘‘(A) the payment is received by the trans-
feror servicer instead of the transferee servicer 
(who should properly receive payment) before 
the due date applicable to such payment; or 
‘‘(B) the payment is received by the trans-
feree servicer instead of the transferor servicer 
(who should properly receive payment) before 
the transfer is complete. 
‘‘(2) NOTICE.—To the maximum extent prac-
ticable, a transferor servicer shall notify a borrower, 
both in writing and by telephone, regarding any pay-
ment described in paragraph (1). 
‘‘(d) ELECTRONIC FUND TRANSFER AUTHORITY.— 
A transferee servicer shall make available to a borrower 
whose student loan servicing is transferred to the trans-
feree servicer a simple, online process through which the 
borrower may transfer to the transferee servicer any exist-
VerDate Sep 11 2014 
23:09 Nov 07, 2015
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3948.IH
H3948
tkelley on DSK3SPTVN1PROD with BILLS