I 
113TH CONGRESS 
2D SESSION 
H. R. 3892 
To establish student loan borrowers’ rights to basic consumer protections, 
reasonable and flexible repayment options, access to earned credentials, 
and effective loan cancellation in exchange for public service, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 15, 2014 
Ms. WILSON of Florida (for herself, Ms. BROWN of Florida, Mr. RUSH, and 
Ms. NORTON) introduced the following bill; which was referred to the 
Committee on Education and the Workforce, and in addition to the Com-
mittees on Ways and Means, the Judiciary, and Oversight and Govern-
ment Reform, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To establish student loan borrowers’ rights to basic consumer 
protections, reasonable and flexible repayment options, 
access to earned credentials, and effective loan cancella-
tion in exchange for public service, and for other pur-
poses. 
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 Bor-
rowers’ Bill of Rights Act of 2013’’. 
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TITLE I—BORROWERS’ RIGHT TO 
BASIC 
CONSUMER 
PROTEC-
TIONS 
SEC. 101. DISCHARGEABILITY OF STUDENT LOANS IN 
BANKRUPTCY CASES. 
Section 523(a) of title 11 of the United States Code 
is amended— 
(1) by striking paragraph (8); and 
(2) by redesignating paragraphs (9) through 
(19) as paragraphs (8) through (18). 
SEC. 102. REINSTATEMENT OF THE 6-YEAR STATUTE OF 
LIMITATIONS FOR STUDENT LOANS. 
Subsection (a) of section 484A of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1091a(a)) is amended to 
read as follows: 
‘‘(a) STATUTE OF LIMITATIONS.—Notwithstanding 
any Federal or State statutory, regulatory, or administra-
tive limitation on the period within which debts may be 
enforced— 
‘‘(1) an institution that receives funds under 
this title may file a suit or initiate or take another 
action for collection of a refund due from a student 
on a grant made, or work assistance awarded, under 
this title, during the 6-year period beginning on the 
day after the refund first became due (exclusive of 
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period during which the State statute of limitations 
otherwise applicable to a suit under this paragraph 
would be tolled under State law); 
‘‘(2) a guaranty agency that has an agreement 
with the Secretary under section 428(c) may file a 
suit or initiate or take another action for collection 
of the amount due from a borrower on a loan made 
under part B during the 6-year period beginning on 
the day after such guaranty agency reimburses the 
previous holder of the loan for its loss on account of 
the default of the borrower (exclusive of period dur-
ing which the State statute of limitations otherwise 
applicable to a suit under this paragraph would be 
tolled under State law); 
‘‘(3) an institution that has an agreement with 
the Secretary pursuant to section 487 may file a suit 
or initiate or take another action for collection of the 
amount due from a borrower on a loan made under 
part D or E after the default of the borrower on 
such loan during the 6-year period beginning on the 
day after the date of the default of the borrower 
with respect to such amount (exclusive of period 
during which the State statute of limitations other-
wise applicable to a suit under this paragraph would 
be tolled under State law); or 
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‘‘(4) the Secretary, the Attorney General, or the 
administrative head of another Federal agency, as 
the case may be, may file a suit or initiate or take 
another action for collection of a refund due from a 
student on a grant made under this title, or for the 
repayment of the amount due from a borrower on a 
loan made under this title that has been assigned to 
the Secretary under this title, during the 6-year pe-
riod beginning on the day after the refund or the 
amount first became due.’’. 
SEC. 103. PROHIBITION OF COLLECTION OF STUDENT 
LOANS 
THROUGH 
CERTAIN 
OFFSETS 
OR 
THROUGH WAGE GARNISHMENT. 
(a) PROHIBITION ON OFFSET OF SOCIAL SECURITY 
BENEFITS.—Section 3716(c)(3)(A) of title 31, United 
States Code, is amended— 
(1) in clause (i), by striking ‘‘except as provided 
in clause (ii)’’ and inserting ‘‘except as provided in 
clauses (ii) and (iii)’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(iii) Notwithstanding clause (i), any payments due 
to an individual under Federal benefits programs cited 
under clause (i) shall not be subject to offset under this 
subsection if the offset is for payments certified by the 
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Department of Education under a program administered 
by the Secretary of Education under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).’’. 
(b) PROHIBITION ON OFFSET OF TAX REFUND.— 
Section 3720A(a) of title 31, United States Code, is 
amended— 
(1) by striking ‘‘Any Federal agency’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), 
any Federal agency’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any past-due legally enforceable debt owed by 
an individual to the Department of Education under a 
program administered by the Secretary of Education 
under title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.) shall not be subject to notification 
under paragraph (1), and any refund of Federal taxes 
paid by the individual shall not be subject to reduction 
under subsection (c) for such debt.’’. 
(c) PROHIBITION ON WAGE GARNISHMENT.—Section 
3720D(a) of title 31, United States Code, is amended— 
(1) by striking ‘‘Notwithstanding’’ and insert-
ing: ‘‘(1) Except as provided in paragraph (2) and 
notwithstanding’’; and 
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(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any delinquent nontax debt owed by an indi-
vidual to the Department of Education under a program 
administered by the Secretary of Education under title IV 
of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.) shall not be subject to collection under this section 
through garnishment of disposable pay of the individual.’’. 
TITLE 
II—BORROWER’S 
RIGHT 
TO REASONABLE AND FLEXI-
BLE REPAYMENT OPTIONS 
SEC. 201. EXCLUSION FROM GROSS INCOME FOR DIS-
CHARGE OF STUDENT LOAN INDEBTEDNESS. 
(a) IN GENERAL.—Paragraph (1) of section 108(f) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘if such discharge’’ and all that follows and inserting 
a period. 
(b) STUDENT LOANS.—Paragraph (2) of section 
108(f) of such Code is amended by striking ‘‘made by— 
’’ and all that follows and inserting the following: ‘‘. Such 
term includes indebtedness used to refinance indebtedness 
which qualifies as a student loan under the preceding sen-
tence.’’. 
(c) CONFORMING AMENDMENTS.—Section 108(f) of 
such Code is amended by striking paragraphs (3) and (4). 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of indebtedness after 
the date of the enactment of this Act. 
SEC. 202. 529 PLAN DISTRIBUTION FOR STUDENT LOAN 
PAYMENTS. 
(a) IN GENERAL.—Subparagraph (A) of section 
529(e)(3) is amended by striking clause (iii) and inserting 
the following new clause: 
‘‘(iii) interest or principal paid with 
respect to a qualified education loan (as 
defined in section 221) with respect to a 
designated beneficiary.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 529(e)(3)(A) of such Code is 
amended by striking the second sentence. 
(2) Section 72(t)(7)(A) of such Code is amend-
ed by inserting ‘‘determined without regard to sub-
paragraph 
(A)(iii) 
thereof’’ 
after 
‘‘section 
529(e)(3)’’. 
(3) Section 530(b)(2)(A)(i) of such Code is 
amended by inserting ‘‘determined without regard to 
subparagraph 
(A)(iii) 
thereof’’ 
after 
‘‘section 
529(e)(3)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 203. INCLUSION OF PARENT PLUS LOANS IN REPAY-
MENT PROGRAMS. 
(a) INCOME CONTINGENT REPAYMENT PLAN.—Sec-
tion 455(d)(1)(D) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(d)(1)(D)) is amended by striking ‘‘, ex-
cept that the plan described in this subparagraph shall 
not be available to the borrower of a Federal Direct PLUS 
loan made on behalf of a dependent student;’’. 
(b) INCOME-BASED REPAYMENT.— 
(1) SECTION 493C.—Section 493C of the High-
er Education Act of 1965 (20 U.S.C. 1098e) is 
amended— 
(A) in subsection (a)— 
(i) by striking ‘‘this section’’ and all 
that follows through ‘‘hardship’’ and in-
serting ‘‘In this section, the term ‘partial 
financial hardship’ ’’; and 
(ii) by striking, ‘‘(other than an ex-
cepted PLUS loan or excepted consolida-
tion loan)’’; 
(B) in subsection (b)— 
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(i) in paragraph (1), by striking 
‘‘(other than an excepted PLUS loan or 
excepted consolidation loan)’’; and 
(ii) in paragraph (6)(A), by striking 
‘‘(other than an excepted PLUS loan or 
excepted consolidation loan)’’; and 
(C) in subsection (c), by striking ‘‘(other 
than an excepted PLUS loan or excepted con-
solidation loan),’’. 
(2) 
SECTION
455(d)(1)(E).—Section 
455(d)(1)(E) 
of 
such 
Act 
(20 
U.S.C. 
1087e(d)(1)(D)) is amended by striking ‘‘, except 
that the plan described in this subparagraph shall 
not be available to the borrower of a Federal Direct 
PLUS Loan made on behalf of a dependent student 
or a Federal Direct Consolidation Loan, if the pro-
ceeds of such loan were used to discharge the liabil-
ity on such Federal Direct PLUS Loan or a loan 
under section 428B made on behalf of a dependent 
student’’. 
(c) PAY AS YOU EARN.—The income-contingent re-
payment plan (based on the President’s ‘‘Pay As You 
Earn’’ repayment initiative) implemented in parts 674, 
682, and 685 of title 34, Code of Federal Regulations, 
as amended by the final regulations published by the De-
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partment of Education in the Federal Register on Novem-
ber 1, 2012 (77 Fed. Reg. 66088 et seq.), shall be avail-
able to borrowers of— 
(1) a Federal Direct PLUS loan made on be-
half of a dependent student; and 
(2) a Federal Direct Consolidation Loan, the 
proceeds of which were used to discharge the liabil-
ity on a Federal Direct PLUS Loan or a loan under 
section 428B made on behalf of a dependent stu-
dent. 
(d) LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
NATIONAL NEED.—Section 428K(a)(2) of such Act (20 
U.S.C. 1078–11(a)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘(other 
than an excepted PLUS loan or an excepted consoli-
dation loan (as such terms are defined in section 
493C(a)))’’; and 
(2) in subparagraph (B), by striking ‘‘(other 
than an excepted PLUS loan or an excepted consoli-
dation loan)’’. 
SEC. 204. DETERMINATION OF ADVERSE CREDIT HISTORY. 
Section 428B(a)(1)(A) of the Higher Education Act 
of 1965 (20 U.S.C. 1078–2(a)(1)(A)) is amended by strik-
ing ‘‘regulations promulgated by the Secretary’’ and in-
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serting ‘‘section 685.200(c) of title 34, Code of Federal 
Regulations (as in effect on September 30, 2011)’’. 
TITLE III—BORROWERS’ RIGHT 
TO A MEANINGFUL DEGREE 
SEC. 301. PROHIBITION ON SUSPENSIONS OF PROFES-
SIONAL LICENSES FOR LOAN DEFAULT. 
No evidence of an individual’s default on the repay-
ment of a loan made, insured, or guaranteed under title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.) may be admitted into evidence in a Federal or 
State proceeding involving the individual’s professional or 
vocational license. 
SEC. 302. PROHIBITION ON LOSS OF ACCESS TO TRAN-
SCRIPTS FOR LOAN DEFAULT. 
Section 487(a) of the Higher Education Act of 1965 
(20 U.S.C. 1094(a)) (as amended by section 301) is fur-
ther amended by adding at the end the following new para-
graph: 
‘‘(31)(A) The institution will not prohibit a stu-
dent from accessing the student’s transcripts, degree 
scrolls, or other certifications of coursework or edu-
cational attainments at the institution because the 
student is in default on the repayment of a loan 
made, insured, or guaranteed under this title. 
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‘‘(B) For purposes of this paragraph, the term 
‘student’ includes former students.’’. 
TITLE IV—RIGHT TO EFFECTIVE 
LOAN 
CANCELLATION 
FOR 
BORROWERS 
ENGAGED 
IN 
PUBLIC SERVICE CAREERS 
SEC. 401. EXTENSION OF LOAN CANCELLATION FOR BOR-
ROWERS EMPLOYED IN PUBLIC SERVICE 
JOBS FOR 5 YEARS. 
Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e) is amended by adding at the end the 
following new paragraph: 
‘‘(5) LOAN CANCELLATION AFTER 5 YEARS.— 
Beginning fiscal year 2014, the Secretary shall also 
cancel 50 percent of the balance of interest and 
principal due on any eligible Federal Direct Loan 
not in default for borrowers employed in a public 
service job for 5 years during the repayment of such 
loans— 
‘‘(A) by applying paragraph (1)(A)— 
‘‘(i) by substituting ‘60’ for ‘120’ each 
place it appears; and 
‘‘(ii) by substituting ‘October 1, 2007’ 
for ‘October 1, 2013’; and 
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‘‘(B) by applying paragraph (2), by sub-
stituting ‘50 percent of the balance’ with ‘the 
balance’.’’. 
Æ 
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