I 
117TH CONGRESS 
1ST SESSION H. R. 1143 
To amend the Truth in Lending Act to modify obligations relating to private 
education loans due to the disability of a cosigner or borrower of the 
loan, to amend title 11 of the United States Code to make student 
loans dischargeable, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 18, 2021 
Mr. KILDEE (for himself, Mr. CARSON, Mr. COHEN, Ms. DEAN, Ms. NORTON, 
Mr. PERLMUTTER, and Mr. VARGAS) introduced the following bill; which 
was referred to the Committee on Financial Services, and in addition to 
the Committees on the Judiciary, and Ways and Means, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Truth in Lending Act to modify obligations 
relating to private education loans due to the disability 
of a cosigner or borrower of the loan, to amend title 
11 of the United States Code to make student loans 
dischargeable, 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 ‘‘Lenders Offer Assist-
ance Now Act’’ or the ‘‘LOAN Act’’. 
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SEC. 2. DISABILITY OF A COSIGNER OR A BORROWER OF A 
PRIVATE EDUCATION LOAN. 
(a) IN GENERAL.—Section 140(g) of the Truth in 
Lending Act (15 U.S.C. 1650(g)) is amended— 
(1) in paragraph (1), by striking ‘‘bankruptcy 
or death’’ and inserting ‘‘bankruptcy, death, or dis-
ability’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(3) DISCHARGE IN CASE OF DISABILITY.—A 
lender that extends a private education loan shall 
discharge the student obligor’s liability on the loan 
if a student obligor experiences a disability. 
‘‘(4) DISABILITY DEFINED.—In this subsection, 
the term ‘disability’ means a permanent and total 
disability, as determined in accordance with the reg-
ulations of the Secretary of Education under section 
437(a) of the Higher Education Act of 1965 (20 
U.S.C. 1087(a)), or a determination by the Sec-
retary of Veterans Affairs that the individual is un-
employable due to a service-connected condition.’’. 
(b) TAX
TREATMENT
OF
DISCHARGE.—Section 
108(f)(5)(A) of the Internal Revenue Code of 1986 is fur-
ther amended by striking ‘‘or’’ in clause (ii), by redesig-
nating clause (iii) as clause (iv), and by inserting after 
clause (ii) the following new clause: 
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‘‘(iii) pursuant to paragraph (3) of 
section 140(g) of the Truth in Lending 
Act, or’’. 
(c) IMPACT ON CERTAIN PROGRAMS.—Discharge of 
a private education loan due to disability of a borrower 
under paragraph (3) of section 140(g) of the Truth in 
Lending Act, as added by subsection (a), shall not be re-
garded as income and shall not be regarded as a resource 
for purposes of determining the eligibility of the borrower 
of such loan (or the borrower’s spouse or family) for bene-
fits or assistance, or the amount or extent of benefits or 
assistance, under any Federal program or under any State 
or local program financed in whole or in part with Federal 
funds. 
(d) APPLICABILITY.—The amendments made by this 
section shall apply to private education loan agreements 
entered into on or after the date that is 180 days after 
the date of enactment of this Act. 
(e) PRIVATE EDUCATION LOAN DEFINED.—In this 
section, the term ‘‘private education loan’’ has the mean-
ing given in section 140(a) of the Truth in Lending Act 
(15 U.S.C. 1650(a)). 
SEC. 3. EXCEPTION TO DISCHARGE. 
(a) IN GENERAL.—Section 523(a) of title 11, United 
States Code, is amended— 
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