H. R. 4137—394 
‘‘(ii) a loan made under part D or E of title IV 
of the Higher Education Act of 1965 (20 U.S.C. 1087a 
et seq. and 1087aa et seq.); and 
‘‘(iii) a loan made under section 428C or 455(g) 
of the Higher Education Act of 1965 (20 U.S.C. 1078– 
3 and 1087e(g)). 
‘‘(B) EXCLUSION
OF
PARENT
PLUS
LOANS.—The term 
‘student loan’ does not include any of the following loans: 
‘‘(i) A loan made to the parents of a dependent 
student under section 428B of the Higher Education 
Act of 1965 (20 U.S.C. 1078–2). 
‘‘(ii) A Federal Direct PLUS Loan made to the 
parents of a dependent student. 
‘‘(iii) A loan made under section 428C or 455(g) 
of the Higher Education Act of 1965 (20 U.S.C. 1078– 
3 and 1087e(g)) to the extent that such loan was used 
to repay a loan described in clause (i) or (ii). 
‘‘(c) PROGRAM AUTHORIZED.—The Attorney General shall estab-
lish a program by which the Department of Justice shall assume 
the obligation to repay a student loan, by direct payments on 
behalf of a borrower to the holder of such loan, in accordance 
with subsection (d), for any borrower who— 
‘‘(1) is employed as a prosecutor or public defender; and 
‘‘(2) is not in default on a loan for which the borrower 
seeks forgiveness. 
‘‘(d) TERMS OF AGREEMENT.— 
‘‘(1) IN GENERAL.—To be eligible to receive repayment bene-
fits under subsection (c), a borrower shall enter into a written 
agreement that specifies that— 
‘‘(A) the borrower will remain employed as a prosecutor 
or public defender for a required period of service of not 
less than three years, unless involuntarily separated from 
that employment; 
‘‘(B) if the borrower is involuntarily separated from 
employment on account of misconduct, or voluntarily sepa-
rates from employment, before the end of the period speci-
fied in the agreement, the borrower will repay the Attorney 
General the amount of any benefits received by such 
employee under this section; 
‘‘(C) if the borrower is required to repay an amount 
to the Attorney General under subparagraph (B) and fails 
to repay such amount, a sum equal to that amount shall 
be recoverable by the Federal Government from the 
employee (or such employee’s estate, if applicable) by such 
methods as are provided by law for the recovery of amounts 
owed to the Federal Government; 
‘‘(D) the Attorney General may waive, in whole or 
in part, a right of recovery under this subsection if it 
is shown that recovery would be against equity and good 
conscience or against the public interest; and 
‘‘(E) the Attorney General shall make student loan 
payments under this section for the period of the agree-
ment, subject to the availability of appropriations. 
‘‘(2) REPAYMENTS.— 
‘‘(A) IN GENERAL.—Any amount repaid by, or recovered 
from, an individual or the estate of an individual under 
this subsection shall be credited to the appropriation
H. R. 4137—395 
account from which the amount involved was originally 
paid. 
‘‘(B) MERGER.—Any amount credited under subpara-
graph (A) shall be merged with other sums in such account 
and shall be available for the same purposes and period, 
and subject to the same limitations, if any, as the sums 
with which the amount was merged. 
‘‘(3) LIMITATIONS.— 
‘‘(A) STUDENT LOAN PAYMENT AMOUNT.—Student loan 
repayments made by the Attorney General under this sec-
tion shall be made subject to such terms, limitations, or 
conditions as may be mutually agreed upon by the borrower 
and the Attorney General in an agreement under para-
graph (1), except that the amount paid by the Attorney 
General under this section shall not exceed— 
‘‘(i) $10,000 for any borrower in any calendar year; 
or 
‘‘(ii) an aggregate total of $60,000 in the case of 
any borrower. 
‘‘(B) BEGINNING OF PAYMENTS.—Nothing in this section 
shall authorize the Attorney General to pay any amount 
to reimburse a borrower for any repayments made by such 
borrower prior to the date on which the Attorney General 
entered into an agreement with the borrower under this 
subsection. 
‘‘(e) ADDITIONAL AGREEMENTS.— 
‘‘(1) IN GENERAL.—On completion of the required period 
of service under an agreement under subsection (d), the bor-
rower and the Attorney General may, subject to paragraph 
(2), enter into an additional agreement in accordance with 
subsection (d). 
‘‘(2) TERM.—An agreement entered into under paragraph 
(1) may require the borrower to remain employed as a pros-
ecutor or public defender for less than three years. 
‘‘(f) AWARD BASIS; PRIORITY.— 
‘‘(1) AWARD BASIS.—Subject to paragraph (2), the Attorney 
General shall provide repayment benefits under this section— 
‘‘(A) giving priority to borrowers who have the least 
ability to repay their loans, except that the Attorney Gen-
eral shall determine a fair allocation of repayment benefits 
among prosecutors and public defenders, and among 
employing entities nationwide; and 
‘‘(B) subject to the availability of appropriations. 
‘‘(2) PRIORITY.—The Attorney General shall give priority 
in providing repayment benefits under this section in any fiscal 
year to a borrower who— 
‘‘(A) received repayment benefits under this section 
during the preceding fiscal year; and 
‘‘(B) has completed less than three years of the first 
required period of service specified for the borrower in 
an agreement entered into under subsection (d). 
‘‘(g) REGULATIONS.—The Attorney General is authorized to issue 
such regulations as may be necessary to carry out the provisions 
of this section. 
‘‘(h) REPORT BY INSPECTOR GENERAL.—Not later than three 
years after the date of the enactment of this section, the Inspector
H. R. 4137—396 
General of the Department of Justice shall submit to Congress 
a report on— 
‘‘(1) the cost of the program authorized under this section; 
and 
‘‘(2) the impact of such program on the hiring and retention 
of prosecutors and public defenders. 
‘‘(i) GAO STUDY.—Not later than one year after the date of 
the enactment of this section, the Comptroller General shall conduct 
a study of, and report to Congress on, the impact that law school 
accreditation requirements and other factors have on the costs 
of law school and student access to law school, including the impact 
of such requirements on racial and ethnic minorities. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section $25,000,000 for fiscal 
year 2009 and such sums as may be necessary for each of the 
five succeeding fiscal years.’’. 
PART F—INSTITUTIONAL LOAN REPAYMENT 
ASSISTANCE PROGRAMS 
SEC. 961. INSTITUTIONAL LOAN FORGIVENESS PROGRAMS. 
Notwithstanding any other provision of law— 
(1) a public or private institution of higher education may 
provide an officer or employee of any branch of the United 
States Government, of any independent agency of the United 
States, or of the District of Columbia, who is a current or 
former student of such institution, financial assistance for the 
purpose of repaying a student loan or providing forbearance 
of student loan repayment if— 
(A) such repayment or forbearance is provided to such 
officer or employee in accordance with a written, published 
policy of the institution relating to repaying or providing 
forbearance, respectively, for students or former students 
who perform public service; and 
(B) in the case of a former student of the institution 
of higher education, the policy described in subparagraph 
(A) was in effect at the institution of higher education 
on the day before the date such officer or employee grad-
uated from or otherwise ceased being a student at such 
institution; and 
(2) an officer or employee of any branch of the United 
States Government, of any independent agency of the United 
States, or of the District of Columbia may receive repayment 
or forbearance permitted under paragraph (1). 
PART G—MINORITY SERVING INSTITUTION 
DIGITAL AND WIRELESS TECHNOLOGY OP-
PORTUNITY PROGRAM 
SEC. 971. MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS 
TECHNOLOGY OPPORTUNITY PROGRAM. 
Section 5 of the Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3704) is amended by inserting after subsection 
(b) the following: 
‘‘(c) MINORITY SERVING INSTITUTION DIGITAL
AND WIRELESS 
TECHNOLOGY OPPORTUNITY PROGRAM.—
H. R. 4137—397 
‘‘(1) IN GENERAL.—The Secretary shall establish a Minority 
Serving Institution Digital and Wireless Technology Oppor-
tunity Program that awards grants, cooperative agreements, 
and contracts to eligible institutions to enable the eligible 
institutions in acquiring, and augmenting the institutions’ use 
of, digital and wireless networking technologies to improve 
the quality and delivery of educational services at eligible 
institutions. 
‘‘(2) APPLICATION AND REVIEW PROCEDURES.— 
‘‘(A) IN GENERAL.—To be eligible to receive a grant, 
cooperative agreement, or contract under this subsection, 
an eligible institution shall submit an application to the 
Secretary at such time, in such manner, and containing 
such information as the Secretary may require. Such 
application, at a minimum, shall include a description of 
how the funds will be used, including a description of 
any digital and wireless networking technology to be 
acquired, and a description of how the institution will 
ensure that digital and wireless networking technology will 
be made accessible to, and employed by, students, faculty, 
and 
administrators. 
The 
Secretary, 
consistent 
with 
subparagraph (C) and in consultation with the advisory 
council established under subparagraph (B), shall establish 
procedures to review such applications. The Secretary shall 
publish the application requirements and review criteria 
in the Federal Register, along with a statement describing 
the availability of funds. 
‘‘(B) ADVISORY COUNCIL.—The Secretary shall establish 
an advisory council to advise the Secretary on the best 
approaches to encourage maximum participation by eligible 
institutions in the program established under paragraph 
(1), and on the procedures to review applications submitted 
to the program. In selecting the members of the advisory 
council, the Secretary shall consult with representatives 
of appropriate organizations, including representatives of 
eligible institutions, to ensure that the membership of the 
advisory council includes representatives of minority 
businesses and eligible institution communities. The Sec-
retary shall also consult with experts in digital and wireless 
networking technology to ensure that such expertise is 
represented on the advisory council. 
‘‘(C) REVIEW
PANELS.—Each application submitted 
under this subsection by an eligible institution shall be 
reviewed by a panel of individuals selected by the Secretary 
to judge the quality and merit of the proposal, including 
the extent to which the eligible institution can effectively 
and successfully utilize the proposed grant, cooperative 
agreement, or contract to carry out the program described 
in paragraph (1). The Secretary shall ensure that the 
review panels include representatives of minority serving 
institutions and others who are knowledgeable about 
eligible institutions and technology issues. The Secretary 
shall ensure that no individual assigned under this sub-
section to review any application has a conflict of interest 
with regard to that application. The Secretary shall take 
into consideration the recommendations of the review panel
H. R. 4137—398 
in determining whether to award a grant, cooperative 
agreement, or contract to an eligible institution. 
‘‘(3) AWARDS.— 
‘‘(A) LIMITATION.—An eligible institution that receives 
a grant, cooperative agreement, or contract under this sub-
section that exceeds $2,500,000 shall not be eligible to 
receive another grant, cooperative agreement, or contract 
under this subsection. 
‘‘(B) CONSORTIA.—Grants, cooperative agreements, and 
contracts may only be awarded to eligible institutions. 
Eligible institutions may seek funding under this sub-
section for consortia, which may include other eligible 
institutions, a State or a State educational agency, local 
educational agencies, institutions of higher education, 
community-based 
organizations, 
national 
nonprofit 
organizations, or businesses, including minority businesses. 
‘‘(C) PLANNING GRANTS.—The Secretary may provide 
funds to develop strategic plans to implement grants, 
cooperative agreements, or contracts awarded under this 
subsection. 
‘‘(D) INSTITUTIONAL
DIVERSITY.—In awarding grants, 
cooperative agreements, and contracts to eligible institu-
tions, the Secretary shall ensure, to the extent practicable, 
that awards are made to all types of institutions eligible 
for assistance under this subsection. 
‘‘(E) NEED.—In awarding funds under this subsection, 
the Secretary shall give priority to the eligible institution 
with the greatest demonstrated need for assistance. 
‘‘(4) AUTHORIZED ACTIVITIES.—An eligible institution may 
use a grant, cooperative agreement, or contract awarded under 
this subsection— 
‘‘(A) to acquire equipment, instrumentation, net-
working capability, hardware and software, digital network 
technology, wireless technology, and infrastructure to fur-
ther the objective of the program described in paragraph 
(1); 
‘‘(B) to develop and provide training, education, and 
professional development programs, including faculty 
development, to increase the use of, and usefulness of, 
digital and wireless networking technology; 
‘‘(C) to provide teacher education, including the provi-
sion of preservice teacher training and in-service profes-
sional development at eligible institutions, library and 
media specialist training, and preschool and teacher aid 
certification to individuals who seek to acquire or enhance 
technology skills in order to use digital and wireless net-
working technology in the classroom or instructional 
process, including instruction in science, mathematics, 
engineering, and technology subjects; 
‘‘(D) to obtain capacity-building technical assistance, 
including through remote technical support, technical 
assistance workshops, and distance learning services; or 
‘‘(E) to foster the use of digital and wireless networking 
technology to improve research and education, including 
scientific, 
mathematics, 
engineering, 
and 
technology 
instruction.
H. R. 4137—399 
‘‘(5) INFORMATION
DISSEMINATION.—The Secretary shall 
convene an annual meeting of eligible institutions receiving 
grants, cooperative agreements, or contracts under this sub-
section to foster collaboration and capacity-building activities 
among eligible institutions. 
‘‘(6) MATCHING
REQUIREMENT.—The Secretary may not 
award a grant, cooperative agreement, or contract to an eligible 
institution under this subsection unless such institution agrees 
that, with respect to the costs incurred by the institution in 
carrying out the program for which the grant, cooperative agree-
ment, or contract was awarded, such institution shall make 
available, directly, or through donations from public or private 
entities, non-Federal contributions in an amount equal to 25 
percent of the grant, cooperative agreement, or contract 
awarded by the Secretary, or $500,000, whichever is the lesser 
amount. The Secretary shall waive the matching requirement 
for any institution or consortium with no endowment, or an 
endowment that has a current dollar value lower than 
$50,000,000. 
‘‘(7) ANNUAL REPORT AND ASSESSMENTS.— 
‘‘(A) ANNUAL
REPORT
REQUIRED
FROM
RECIPIENTS.— 
Each eligible institution that receives a grant, cooperative 
agreement, or contract awarded under this subsection shall 
provide an annual report to the Secretary on its use of 
the grant, cooperative agreement, or contract. 
‘‘(B) INDEPENDENT ASSESSMENTS.— 
‘‘(i) CONTRACT
TO
CONDUCT
ASSESSMENTS.—Not 
later than 6 months after the date of enactment of 
this subsection, the Secretary shall enter into a con-
tract with the National Academy of Public Administra-
tion to conduct periodic assessments of the program 
established under paragraph (1). The assessments shall 
be conducted once every 3 years during the 10-year 
period following the date of enactment of this sub-
section. 
‘‘(ii) EVALUATIONS
AND
RECOMMENDATIONS.—The 
assessments described in clause (i) shall include— 
‘‘(I) an evaluation of the effectiveness of the 
program established under paragraph (1) in 
improving the education and training of students, 
faculty, and staff at eligible institutions that have 
been awarded grants, cooperative agreements, or 
contracts under the program; 
‘‘(II) an evaluation of the effectiveness of the 
program in improving access to, and familiarity 
with, digital and wireless networking technology 
for students, faculty, and staff at all eligible 
institutions; 
‘‘(III) an evaluation of the procedures estab-
lished under paragraph (2)(A); and 
‘‘(IV) recommendations for improving the pro-
gram, including recommendations concerning the 
continuing need for Federal support. 
‘‘(iii) REVIEW
OF
REPORTS.—In carrying out the 
assessments under this subparagraph, the National 
Academy of Public Administration shall review the
H. R. 4137—400 
reports submitted to the Secretary under subparagraph 
(A). 
‘‘(iv) REPORT TO CONGRESS.—Upon completion of 
each assessment under this subparagraph, the Sec-
retary shall transmit the assessment to Congress along 
with a summary of the Secretary’s plans, if any, to 
implement the recommendations of the National 
Academy of Public Administration. 
‘‘(8) DEFINITIONS.—In this subsection: 
‘‘(A) 
DIGITAL
AND
WIRELESS
NETWORKING
TECH-
NOLOGY.—The term ‘digital and wireless networking tech-
nology’ means computer and communications equipment 
and software that facilitates the transmission of informa-
tion in a digital format. 
‘‘(B) ELIGIBLE INSTITUTION.—The term ‘eligible institu-
tion’ means an institution that is— 
‘‘(i) a part B institution, as defined in section 322(2) 
of the Higher Education Act of 1965 (20 U.S.C. 
1061(2)), an institution identified in subparagraph (A), 
(B), or (C) of section 326(e)(1) of such Act (20 U.S.C. 
1063b(e)(1)(A), (B), or (C)), or a consortium of institu-
tions described in this clause; 
‘‘(ii) a Hispanic-serving institution, as defined in 
section 502(a)(5) of the Higher Education Act of 1965 
(20 U.S.C. 1101a(a)(5)); 
‘‘(iii) a Tribal College or University, as defined 
in section 316(b)(3) of the Higher Education Act of 
1965 (20 U.S.C. 1059c(b)(3)); 
‘‘(iv) an Alaska Native-serving institution, as 
defined in section 317(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1059d(b)); 
‘‘(v) a Native Hawaiian-serving institution, as 
defined in section 317(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1059d(b)); 
‘‘(vi) a Predominately Black Institution, as defined 
in section 318 of the Higher Education Act of 1965 
(20 U.S.C. 1059e); 
‘‘(vii) a Native American-serving, nontribal institu-
tion, as defined in section 319 of the Higher Education 
Act of 1965 (20 U.S.C. 1059f); 
‘‘(viii) an Asian American and Native American 
Pacific Islander-serving institution, as defined in sec-
tion 320 of the Higher Education Act of 1965 (20 U.S.C. 
1059g); or 
‘‘(ix) a minority institution, as defined in section 
365 of the Higher Education Act of 1965 (20 U.S.C. 
1067k), with an enrollment of needy students, as 
defined in section 312(d) of the Higher Education Act 
of 1965 (20 U.S.C. 1058(d)). 
‘‘(C) INSTITUTION
OF
HIGHER
EDUCATION.—The term 
‘institution of higher education’ has the meaning given 
the term in section 101 of the Higher Education Act of 
1965 (20 U.S.C. 1001). 
‘‘(D) LOCAL
EDUCATIONAL
AGENCY.—The term ‘local 
educational agency’ has the meaning given the term in 
section 9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801).
H. R. 4137—401 
‘‘(E) MINORITY BUSINESS.—The term ‘minority business’ 
includes HUBZone small business concerns (as defined in 
section 3(p) of the Small Business Act (15 U.S.C. 632(p))). 
‘‘(F) MINORITY INDIVIDUAL.—The term ‘minority indi-
vidual’ means an American Indian, Alaskan Native, Black 
(not of Hispanic origin), Hispanic (including persons of 
Mexican, Puerto Rican, Cuban, and Central or South Amer-
ican origin), or Pacific Islander individual. 
‘‘(G) STATE.—The term ‘State’ has the meaning given 
the term in section 9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801). 
‘‘(H) STATE
EDUCATIONAL
AGENCY.—The term ‘State 
educational agency’ has the meaning given the term in 
section 9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801).’’. 
SEC. 972. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Secretary of 
Commerce to carry out section 5(c) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 such sums as may be necessary 
for each of the fiscal years 2009 through 2012. 
TITLE X—PRIVATE STUDENT LOAN 
IMPROVEMENT 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Private Student Loan Trans-
parency and Improvement Act of 2008’’. 
SEC. 1002. REGULATIONS. 
Not later than 365 days after the date of enactment of this 
Act, the Board of Governors of the Federal Reserve System shall 
issue regulations in final form to implement paragraphs (1), (2), 
(3), (4), (6), (7), and (8) of section 128(e) and section 140(c) of 
the Truth in Lending Act, as added by this title, which regulations 
shall become effective not later than 6 months after their date 
of issuance. 
SEC. 1003. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as provided in subsection (b) and 
as otherwise provided in this title, this title and the amendments 
made by this title shall become effective on the date of enactment 
of this Act. 
(b) EFFECT NOTWITHSTANDING REGULATIONS.—Paragraphs (1), 
(2), (3), (4), (6), (7), and (8) of section 128(e) and section 140(c) 
of the Truth in Lending Act, as added by this title, shall become 
effective on the earlier of the date on which regulations issued 
under section 1002 become effective or 18 months after the date 
of enactment of this Act.
H. R. 4137—402 
Subtitle A—Preventing Unfair and Decep-
tive Private Educational Lending Prac-
tices and Eliminating Conflicts of Inter-
est 
SEC. 1011. AMENDMENT TO THE TRUTH IN LENDING ACT. 
(a) PREVENTING UNFAIR AND DECEPTIVE PRIVATE EDUCATIONAL 
LENDING PRACTICES AND CONFLICTS OF INTEREST.—Chapter 2 of 
the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended 
by adding at the end the following new section: 
‘‘§ 140. Preventing unfair and deceptive private educational 
lending practices and eliminating conflicts of 
interest 
‘‘(a) DEFINITIONS.—As used in this section— 
‘‘(1) the term ‘covered educational institution’— 
‘‘(A) means any educational institution that offers a 
postsecondary educational degree, certificate, or program 
of study (including any institution of higher education); 
and 
‘‘(B) includes an agent, officer, or employee of the edu-
cational institution; 
‘‘(2) the term ‘gift’— 
‘‘(A)(i) means any gratuity, favor, discount, entertain-
ment, hospitality, loan, or other item having more than 
a de minimis monetary value, including services, transpor-
tation, lodging, or meals, whether provided in kind, by 
purchase of a ticket, payment in advance, or reimbursement 
after the expense has been incurred; and 
‘‘(ii) includes an item described in clause (i) provided 
to a family member of an officer, employee, or agent of 
a covered educational institution, or to any other individual 
based on that individual’s relationship with the officer, 
employee, or agent, if— 
‘‘(I) the item is provided with the knowledge and 
acquiescence of the officer, employee, or agent; and 
‘‘(II) the officer, employee, or agent has reason 
to believe the item was provided because of the official 
position of the officer, employee, or agent; and 
‘‘(B) does not include— 
‘‘(i) standard informational material related to a 
loan, default aversion, default prevention, or financial 
literacy; 
‘‘(ii) food, refreshments, training, or informational 
material furnished to an officer, employee, or agent 
of a covered educational institution, as an integral 
part of a training session or through participation in 
an advisory council that is designed to improve the 
service of the private educational lender to the covered 
educational institution, if such training or participation 
contributes to the professional development of the 
officer, employee, or agent of the covered educational 
institution;
H. R. 4137—403 
‘‘(iii) favorable terms, conditions, and borrower 
benefits on a private education loan provided to a 
student employed by the covered educational institu-
tion, if such terms, conditions, or benefits are not pro-
vided because of the student’s employment with the 
covered educational institution; 
‘‘(iv) the provision of financial literacy counseling 
or services, including counseling or services provided 
in coordination with a covered educational institution, 
to the extent that such counseling or services are not 
undertaken to secure— 
‘‘(I) applications for private education loans 
or private education loan volume; 
‘‘(II) applications or loan volume for any loan 
made, insured, or guaranteed under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.); or 
‘‘(III) the purchase of a product or service of 
a specific private educational lender; 
‘‘(v) philanthropic contributions to a covered edu-
cational institution from a private educational lender 
that are unrelated to private education loans and are 
not made in exchange for any advantage related to 
private education loans; or 
‘‘(vi) State education grants, scholarships, or finan-
cial aid funds administered by or on behalf of a State; 
‘‘(3) the term ‘institution of higher education’ has the same 
meaning as in section 102 of the Higher Education Act of 
1965 (20 U.S.C. 1002); 
‘‘(4) the term ‘postsecondary educational expenses’ means 
any of the expenses that are included as part of the cost 
of attendance of a student, as defined under section 472 of 
the Higher Education Act of 1965 (20 U.S.C. 1087ll); 
‘‘(5) the term ‘preferred lender arrangement’ has the same 
meaning as in section 151 of the Higher Education Act of 
1965; 
‘‘(6) the term ‘private educational lender’ means— 
‘‘(A) a financial institution, as defined in section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813) 
that solicits, makes, or extends private education loans; 
‘‘(B) a Federal credit union, as defined in section 101 
of the Federal Credit Union Act (12 U.S.C. 1752) that 
solicits, makes, or extends private education loans; and 
‘‘(C) any other person engaged in the business of solic-
iting, making, or extending private education loans; 
‘‘(7) the term ‘private education loan’— 
‘‘(A) means a loan provided by a private educational 
lender that— 
‘‘(i) is not made, insured, or guaranteed under 
of title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.); and 
‘‘(ii) is issued expressly for postsecondary edu-
cational expenses to a borrower, regardless of whether 
the loan is provided through the educational institution 
that the subject student attends or directly to the 
borrower from the private educational lender; and
H. R. 4137—404 
‘‘(B) does not include an extension of credit under 
an open end consumer credit plan, a reverse mortgage 
transaction, a residential mortgage transaction, or any 
other loan that is secured by real property or a dwelling; 
and 
‘‘(8) the term ‘revenue sharing’ means an arrangement 
between a covered educational institution and a private edu-
cational lender under which— 
‘‘(A) a private educational lender provides or issues 
private education loans with respect to students attending 
the covered educational institution; 
‘‘(B) the covered educational institution recommends 
to students or others the private educational lender or 
the private education loans of the private educational 
lender; and 
‘‘(C) the private educational lender pays a fee or pro-
vides other material benefits, including profit sharing, to 
the covered educational institution in connection with the 
private education loans provided to students attending the 
covered educational institution or a borrower acting on 
behalf of a student. 
‘‘(b) PROHIBITION
ON CERTAIN GIFTS
AND ARRANGEMENTS.— 
A private educational lender may not, directly or indirectly— 
‘‘(1) offer or provide any gift to a covered educational 
institution in exchange for any advantage or consideration pro-
vided to such private educational lender related to its private 
education loan activities; or 
‘‘(2) engage in revenue sharing with a covered educational 
institution. 
‘‘(c) PROHIBITION
ON CO-BRANDING.—A private educational 
lender may not use the name, emblem, mascot, or logo of the 
covered educational institution, or other words, pictures, or symbols 
readily identified with the covered educational institution, in the 
marketing of private education loans in any way that implies that 
the covered educational institution endorses the private education 
loans offered by the private educational lender. 
‘‘(d) ADVISORY BOARD COMPENSATION.—Any person who is 
employed in the financial aid office of a covered educational institu-
tion, or who otherwise has responsibilities with respect to private 
education loans or other financial aid of the institution, and who 
serves on an advisory board, commission, or group established 
by a private educational lender or group of such lenders shall 
be prohibited from receiving anything of value from the private 
educational lender or group of lenders. Nothing in this subsection 
prohibits the reimbursement of reasonable expenses incurred by 
an employee of a covered educational institution as part of their 
service on an advisory board, commission, or group described in 
this subsection. 
‘‘(e) PROHIBITION ON PREPAYMENT OR REPAYMENT FEES OR PEN-
ALTY.—It shall be unlawful for any private educational lender to 
impose a fee or penalty on a borrower for early repayment or 
prepayment of any private education loan.’’. 
(b) CONFORMING AMENDMENT TO TRUTH IN LENDING ACT.— 
Section 103(f) of the Truth in Lending Act (15 U.S.C. 1602(f)) 
is amended by adding at the end the following: ‘‘The term ‘creditor’ 
includes a private educational lender (as that term is defined in 
section 140) for purposes of this title.’’.
H. R. 4137—405 
(c) DISCLOSURES
OF
REIMBURSEMENTS
FOR
SERVICE
ON 
ADVISORY BOARDS.— 
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 
1092), as amended by this Act, is further amended by adding 
at the end the following: 
‘‘(m) DISCLOSURES
OF
REIMBURSEMENTS
FOR
SERVICE
ON 
ADVISORY BOARDS.— 
‘‘(1) DISCLOSURE.—Each institution of higher education 
participating in any program under this title shall report, on 
an annual basis, to the Secretary, any reasonable expenses 
paid or provided under section 140(d) of the Truth in Lending 
Act to any employee who is employed in the financial aid 
office of the institution, or who otherwise has responsibilities 
with respect to education loans or other financial aid of the 
institution. Such reports shall include— 
‘‘(A) the amount for each specific instance of reasonable 
expenses paid or provided; 
‘‘(B) the name of the financial aid official, other 
employee, or agent to whom the expenses were paid or 
provided; 
‘‘(C) the dates of the activity for which the expenses 
were paid or provided; and 
‘‘(D) a brief description of the activity for which the 
expenses were paid or provided. 
‘‘(2) REPORT TO CONGRESS.—The Secretary shall summarize 
the information received from institutions of higher education 
under paragraph (1) in a report and transmit such report 
annually to the authorizing committees.’’. 
SEC. 1012. CIVIL LIABILITY. 
(a) IN GENERAL.—Section 130 of the Truth in Lending Act 
(15 U.S.C. 1640) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3), by inserting ‘‘or 128(e)(7)’’ after 
‘‘section 125’’; and 
(B) in the fourth sentence of the undesignated matter 
at the end— 
(i) by striking ‘‘125 or’’ and inserting ‘‘125,’’; and 
(ii) by inserting ‘‘of subparagraphs (A), (B), (D), 
(F), or (J) of section 128(e)(2) (for purposes of paragraph 
(2) or (4) of section 128(e)), or paragraph (4)(C), (6), 
(7), or (8) of section 128(e),’’ before ‘‘or for failing’’; 
(2) in subsection (e), by inserting before the first period 
the following: ‘‘or, in the case of a violation involving a private 
education loan (as that term is defined in section 140(a)), 1 
year from the date on which the first regular payment of 
principal is due under the loan’’; and 
(3) by adding at the end the following: 
‘‘(j) PRIVATE EDUCATIONAL LENDER.—A private educational 
lender (as that term is defined in section 140(a)) has no liability 
under this section for failure to comply with section 128(e)(3)).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall have the same effective date as provisions referred to in 
section 1003(b).
H. R. 4137—406 
SEC. 1013. CLERICAL AMENDMENT. 
The table of sections for chapter 2 of title I of the Truth 
in Lending Act (15 U.S.C. 1631 et seq.) is amended by adding 
at the end the following: 
‘‘140. Preventing unfair and deceptive private educational lending practices and 
eliminating conflicts of interest.’’. 
Subtitle B—Improved Disclosures for 
Private Education Loans 
SEC. 1021. PRIVATE EDUCATION LOAN DISCLOSURES AND LIMITA-
TIONS. 
(a) TRUTH
IN LENDING ACT.—Section 128 of the Truth in 
Lending Act (15 U.S.C. 1638) is amended by adding at the end 
the following: 
‘‘(e) TERMS AND DISCLOSURE WITH RESPECT TO PRIVATE EDU-
CATION LOANS.— 
‘‘(1) DISCLOSURES REQUIRED IN PRIVATE EDUCATION LOAN 
APPLICATIONS AND SOLICITATIONS.—In any application for a pri-
vate education loan, or a solicitation for a private education 
loan without requiring an application, the private educational 
lender shall disclose to the borrower, clearly and conspicu-
ously— 
‘‘(A) the potential range of rates of interest applicable 
to the private education loan; 
‘‘(B) whether the rate of interest applicable to the 
private education loan is fixed or variable; 
‘‘(C) limitations on interest rate adjustments, both in 
terms of frequency and amount, or the lack thereof, if 
applicable; 
‘‘(D) requirements for a co-borrower, including any 
changes in the applicable interest rates without a co-bor-
rower; 
‘‘(E) potential finance charges, late fees, penalties, and 
adjustments to principal, based on defaults or late pay-
ments of the borrower; 
‘‘(F) fees or range of fees applicable to the private 
education loan; 
‘‘(G) the term of the private education loan; 
‘‘(H) whether interest will accrue while the student 
to whom the private education loan relates is enrolled 
at a covered educational institution; 
‘‘(I) payment deferral options; 
‘‘(J) general eligibility criteria for the private education 
loan; 
‘‘(K) an example of the total cost of the private edu-
cation loan over the life of the loan— 
‘‘(i) which shall be calculated using the principal 
amount and the maximum rate of interest actually 
offered by the private educational lender; and 
‘‘(ii) calculated both with and without capitaliza-
tion of interest, if an option exists for postponing 
interest payments;
H. R. 4137—407 
‘‘(L) that a covered educational institution may have 
school-specific education loan benefits and terms not 
detailed on the disclosure form; 
‘‘(M) that the borrower may qualify for Federal student 
financial assistance through a program under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 
in lieu of, or in addition to, a loan from a non-Federal 
source; 
‘‘(N) the interest rates available with respect to such 
Federal student financial assistance through a program 
under title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.); 
‘‘(O) that, as provided in paragraph (6)— 
‘‘(i) the borrower shall have the right to accept 
the terms of the loan and consummate the transaction 
at any time within 30 calendar days (or such longer 
period as the private educational lender may provide) 
following the date on which the application for the 
private education loan is approved and the borrower 
receives the disclosure documents required under this 
subsection for the loan; and 
‘‘(ii) except for changes based on adjustments to 
the index used for a loan, the rates and terms of 
the loan may not be changed by the private educational 
lender during the period described in clause (i); 
‘‘(P) that, before a private education loan may be con-
summated, the borrower must obtain from the relevant 
institution of higher education the form required under 
paragraph (3), and complete, sign, and return such form 
to the private educational lender; 
‘‘(Q) that the consumer may obtain additional informa-
tion concerning such Federal student financial assistance 
from their institution of higher education, or at the website 
of the Department of Education; and 
‘‘(R) such other information as the Board shall pre-
scribe, by rule, as necessary or appropriate for consumers 
to make informed borrowing decisions. 
‘‘(2) DISCLOSURES AT THE TIME OF PRIVATE EDUCATION LOAN 
APPROVAL.—Contemporaneously with the approval of a private 
education loan application, and before the loan transaction 
is consummated, the private educational lender shall disclose 
to the borrower, clearly and conspicuously— 
‘‘(A) the applicable rate of interest in effect on the 
date of approval; 
‘‘(B) whether the rate of interest applicable to the 
private education loan is fixed or variable; 
‘‘(C) limitations on interest rate adjustments, both in 
terms of frequency and amount, or the lack thereof, if 
applicable; 
‘‘(D) the initial approved principal amount; 
‘‘(E) applicable finance charges, late fees, penalties, 
and adjustments to principal, based on borrower defaults 
or late payments, including limitations on the discharge 
of a private education loan in bankruptcy; 
‘‘(F) fees or range of fees applicable to the private 
education loan;
H. R. 4137—408 
‘‘(G) the maximum term under the private education 
loan program; 
‘‘(H) an estimate of the total amount for repayment, 
at both the interest rate in effect on the date of approval 
and at the maximum possible rate of interest offered by 
the private educational lender and applicable to the bor-
rower, to the extent that such maximum rate may be 
determined, or if not, a good faith estimate thereof; 
‘‘(I) any principal and interest payments required while 
the student for whom the private education loan is intended 
is enrolled at a covered educational institution and unpaid 
interest that will accrue during such enrollment; 
‘‘(J) payment deferral options applicable to the bor-
rower; 
‘‘(K) whether monthly payments are graduated; 
‘‘(L) that, as provided in paragraph (6)— 
‘‘(i) the borrower shall have the right to accept 
the terms of the loan and consummate the transaction 
at any time within 30 calendar days (or such longer 
period as the private educational lender may provide) 
following the date on which the application for the 
private education loan is approved and the borrower 
receives the disclosure documents required under this 
subsection for the loan; and 
‘‘(ii) except for changes based on adjustments to 
the index used for a loan, the rates and terms of 
the loan may not be changed by the private educational 
lender during the period described in clause (i); 
‘‘(M) that the borrower — 
‘‘(i) may qualify for Federal financial assistance 
through a program under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), in lieu 
of, or in addition to, a loan from a non-Federal source; 
and 
‘‘(ii) may obtain additional information concerning 
such assistance from their institution of higher edu-
cation or the website of the Department of Education; 
‘‘(N) the interest rates available with respect to such 
Federal financial assistance through a program under title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.); 
‘‘(O) the maximum monthly payment, calculated using 
the maximum rate of interest actually offered by the private 
educational lender and applicable to the borrower, to the 
extent that such maximum rate may be determined, or 
if not, a good faith estimate thereof; and 
‘‘(P) such other information as the Board shall pre-
scribe, by rule, as necessary or appropriate for consumers 
to make informed borrowing decisions. 
‘‘(3) SELF-CERTIFICATION OF INFORMATION.— 
‘‘(A) IN GENERAL.—Before a private educational lender 
may consummate a private education loan with respect 
to a student attending an institution of higher education, 
the lender shall obtain from the applicant for the private 
education loan the form developed by the Secretary of 
Education under section 155 of the Higher Education Act
H. R. 4137—409 
of 1965, signed by the applicant, in written or electronic 
form. 
‘‘(B) RULE OF CONSTRUCTION.—No other provision of 
this subsection shall be construed to require a private 
educational lender to perform any additional duty under 
this paragraph, other than collecting the form required 
under subparagraph (A). 
‘‘(4) DISCLOSURES AT THE TIME OF PRIVATE EDUCATION LOAN 
CONSUMMATION.—Contemporaneously with the consummation 
of a private education loan, a private educational lender shall 
make to the borrower each of the disclosures described in— 
‘‘(A) paragraph (2)(A) (adjusted, as necessary, for the 
rate of interest in effect on the date of consummation, 
based on the index used for the loan); 
‘‘(B) subparagraphs (B) through (K) and (M) through 
(P) of paragraph (2); and 
‘‘(C) paragraph (7). 
‘‘(5) FORMAT OF DISCLOSURES.— 
‘‘(A) MODEL FORM.—Not later than 2 years after the 
date of enactment of this subsection, the Board shall, based 
on consumer testing, and in consultation with the Secretary 
of Education, develop and issue model forms that may 
be used, at the option of the private educational lender, 
for the provision of disclosures required under this sub-
section. 
‘‘(B) FORMAT.—Model forms developed under this para-
graph shall— 
‘‘(i) be comprehensible to borrowers, with a clear 
format and design; 
‘‘(ii) provide for clear and conspicuous disclosures; 
‘‘(iii) enable borrowers easily to identify material 
terms of the loan and to compare such terms among 
private education loans; and 
‘‘(iv) be succinct, and use an easily readable type 
font. 
‘‘(C) SAFE
HARBOR.—Any private educational lender 
that elects to provide a model form developed under this 
subsection that accurately reflects the practices of the pri-
vate educational lender shall be deemed to be in compliance 
with the disclosures required under this subsection. 
‘‘(6) EFFECTIVE
PERIOD
OF
APPROVED
RATE
OF
INTEREST 
AND LOAN TERMS.— 
‘‘(A) IN GENERAL.—With respect to a private education 
loan, the borrower shall have the right to accept the terms 
of the loan and consummate the transaction at any time 
within 30 calendar days (or such longer period as the 
private educational lender may provide) following the date 
on which the application for the private education loan 
is approved and the borrower receives the disclosure docu-
ments required under this subsection for the loan, and 
the rates and terms of the loan may not be changed by 
the private educational lender during that period. 
‘‘(B) PROHIBITION
ON
CHANGES.—Except for changes 
based on adjustments to the index used for a loan, the 
rates and terms of the loan may not be changed by the 
private educational lender prior to the earlier of—
H. R. 4137—410 
‘‘(i) the date of acceptance of the terms of the 
loan and consummation of the transaction by the bor-
rower, as described in subparagraph (A); or 
‘‘(ii) the expiration of the period described in 
subparagraph (A). 
‘‘(7) RIGHT TO CANCEL.—With respect to a private education 
loan, the borrower may cancel the loan, without penalty to 
the borrower, at any time within 3 business days of the date 
on which the loan is consummated, and the private educational 
lender shall disclose such right to the borrower in accordance 
with paragraph (4). 
‘‘(8) PROHIBITION
ON
DISBURSEMENT.—No funds may be 
disbursed with respect to a private education loan until the 
expiration of the 3-day period described in paragraph (7). 
‘‘(9) BOARD
REGULATIONS.—In issuing regulations under 
this subsection, the Board shall prevent, to the extent possible, 
duplicative disclosure requirements for private educational 
lenders that are otherwise required to make disclosures under 
this title, except that in any case in which the disclosure 
requirements of this subsection differ or conflict with the disclo-
sure requirements of any other provision of this title, the 
requirements of this subsection shall be controlling. 
‘‘(10) DEFINITIONS.—For purposes of this subsection, the 
terms ‘covered educational institution’, ‘private educational 
lender’, and ‘private education loan’ have the same meanings 
as in section 140. 
‘‘(11) DUTIES
OF
LENDERS
PARTICIPATING
IN
PREFERRED 
LENDER ARRANGEMENTS.—Each private educational lender that 
has a preferred lender arrangement with a covered educational 
institution shall annually, by a date determined by the Board, 
in consultation with the Secretary of Education, provide to 
the covered educational institution such information as the 
Board determines to include in the model form developed under 
paragraph (5) for each type of private education loan that 
the lender plans to offer to students attending the covered 
educational institution, or to the families of such students, 
for the next award year (as that term is defined in section 
481 of the Higher Education Act of 1965).’’. 
(b) SELF-CERTIFICATION FORM.—Part E of title I of the Higher 
Education Act of 1965, as added by this Act, is further amended 
by inserting after section 154 the following: 
‘‘SEC. 155. SELF-CERTIFICATION FORM FOR PRIVATE EDUCATION 
LOANS. 
‘‘(a) IN GENERAL.—The Secretary, in consultation with the 
Board of Governors of the Federal Reserve System, shall develop 
the self-certification form for private education loans that shall 
be used to satisfy the requirements of section 128(e)(3) of the 
Truth in Lending Act. Such form shall— 
‘‘(1) be developed in a standardized format; 
‘‘(2) be made available to the applicant by the relevant 
institution of higher education, in written or electronic form, 
upon request of the applicant; 
‘‘(3) contain only disclosures that— 
‘‘(A) the applicant may qualify for Federal student 
financial assistance through a program under title IV of
H. R. 4137—411 
this Act, or State or institutional student financial assist-
ance, in place of, or in addition to, a private education 
loan; 
‘‘(B) the applicant is encouraged to discuss the avail-
ability of Federal, State, and institutional student financial 
assistance with financial aid officials at the applicant’s 
institution of higher education; 
‘‘(C) a private education loan may affect the applicant’s 
eligibility for free or low-cost Federal, State or institutional 
student financial assistance; and 
‘‘(D) the information that the applicant is required 
to provide on the form is available from officials at the 
financial aid office of the institution of higher education; 
‘‘(4) include a place to provide information on— 
‘‘(A) the applicant’s cost of attendance at the institution 
of higher education, as determined by the institution under 
Part F of title IV; 
‘‘(B) the applicant’s expected family contribution, as 
determined under Part F of title IV, as applicable, for 
students who have completed the free application for Fed-
eral student aid; 
‘‘(C) the applicant’s estimated financial assistance, as 
determined by the institution, in accordance with title IV, 
as applicable; 
‘‘(D) the difference between the amounts under sub-
paragraphs (A) and (C), as applicable; and 
‘‘(E) the sum of the amounts under subparagraphs 
(B) and (D), as applicable; and 
‘‘(5) include a place for the applicant’s signature, in written 
or electronic form. 
‘‘(b) LIMIT ON LIABILITY.—Nothing in this section shall be con-
strued to create a private right of action against an institution 
of higher education with respect to the form developed under sub-
section (a).’’. 
SEC. 1022. APPLICATION OF TRUTH IN LENDING ACT TO ALL PRIVATE 
EDUCATION LOANS. 
Section 104(3) of the Truth in Lending Act (15 U.S.C. 1603(3)) 
is amended by inserting ‘‘and other than private education loans 
(as that term is defined in section 140(a))’’ after ‘‘consumer’’. 
Subtitle C—College Affordability 
SEC. 1031. COMMUNITY REINVESTMENT ACT CREDIT FOR LOW-COST 
LOANS. 
(a) IN GENERAL.—Section 804 of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2903) is amended by adding at the end 
the following new subsection: 
‘‘(d) LOW-COST EDUCATION LOANS.—In assessing and taking 
into account, under subsection (a), the record of a financial institu-
tion, the appropriate Federal financial supervisory agency shall 
consider, as a factor, low-cost education loans provided by the 
financial institution to low-income borrowers.’’. 
(b) REGULATIONS REQUIRED.—Not later than 1 year after the 
date of enactment of this Act, each appropriate Federal financial 
supervisory agency shall issue rules in final form to implement
H. R. 4137—412 
section 804(d) of the Community Reinvestment Act of 1977, as 
added by this section. 
Subtitle D—Financial Literacy; Studies 
and Reports 
SEC. 1041. DEFINITIONS. 
As used in this subtitle— 
(1) the terms ‘‘covered educational institution’’, ‘‘private 
educational lender’’, and ‘‘private education loan’’ have the same 
meanings as in section 140 of the Truth in Lending Act, as 
added by this Act; 
(2) the term ‘‘historically Black colleges and universities’’ 
means a ‘‘part B institution’’, within the meaning of section 
322 of the Higher Education Act of 1965 (20 U.S.C. 1061)); 
and 
(3) the term ‘‘land-grant colleges and universities’’ has the 
same meaning as in section 1404 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103). 
SEC. 1042. COORDINATED EDUCATION EFFORTS. 
(a) IN GENERAL.—The Secretary of the Treasury (in this section 
referred to as the ‘‘Secretary’’), in coordination with the Secretary 
of Education, the Secretary of Agriculture (with respect to land- 
grant colleges and universities), and any other appropriate agency 
that is a member of the Financial Literacy and Education Commis-
sion established under the Financial Literacy and Education 
Improvement Act (20 U.S.C. 9701 et seq.), shall seek to enhance 
financial literacy among students at covered educational institutions 
through— 
(1) the development of initiatives, programs, and curricula 
that improve student awareness of the short- and long-term 
costs associated with education loans and other debt assumed 
while in college, their repayment obligations, and their rights 
as borrowers; and 
(2) assisting such students in navigating the financial aid 
process. 
(b) DUTIES.—For purposes of this section, the Secretary, 
working in conjunction with the Secretary of Education, the Sec-
retary of Agriculture, and the Financial Literacy and Education 
Commission, shall— 
(1) identify programs that promote or enhance financial 
literacy for college students, with specific emphasis on programs 
that impart the knowledge and ability for students to best 
navigate the financial aid process, including those that involve 
partnerships between nonprofit organizations, colleges and 
universities, State and local governments, and student 
organizations; 
(2) evaluate the effectiveness of such programs in terms 
of measured results, including positive behavioral change 
among college students; 
(3) promote the programs identified as being the most 
effective; and