I 
116TH CONGRESS 
1ST SESSION H. R. 5294 
To amend the Truth in Lending Act to establish a postsecondary education 
loan borrower bill of rights and to require certain creditors to obtain 
private loan certifications from institutions of higher education, to amend 
the Fair Credit Reporting Act to require the Bureau of Consumer Finan-
cial Protection to issue rules to establish standards for reporting informa-
tion related to student loans to consumer reporting agencies, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 4, 2019 
Ms. ADAMS introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committee on Education 
and Labor, 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 amend the Truth in Lending Act to establish a postsec-
ondary education loan borrower bill of rights and to 
require certain creditors to obtain private loan certifi-
cations from institutions of higher education, to amend 
the Fair Credit Reporting Act to require the Bureau 
of Consumer Financial Protection to issue rules to estab-
lish standards for reporting information related to stu-
dent loans to consumer reporting agencies, and for other 
purposes. 
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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 Borrower Pro-
tections Act of 2019’’. 
SEC. 2. POSTSECONDARY EDUCATION LOAN BORROWER 
BILL OF RIGHTS. 
Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended— 
(1) by redesignating section 140A as section 
140B; 
(2) by inserting after section 140 the following: 
‘‘§ 140A. Postsecondary education loan borrower bill 
of rights 
‘‘(a) DEFINITIONS.—In this paragraph: 
‘‘(1) BORROWER.—The term ‘borrower’ means 
the person to whom a postsecondary education loan 
is extended. 
‘‘(2) CHARGE
OFF.—The term ‘charge off’ 
means charge to profit and loss, or subject to any 
similar action. 
‘‘(3) COVERED
LENDER, SERVICER, OR
AS-
SIGNEE.—The term ‘covered lender, servicer, or as-
signee’ means— 
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‘‘(A) an eligible lender (as defined under 
section 435 of the Higher Education Act of 
1965) of a loan made, insured, or guaranteed 
under part B of title IV of the Higher Edu-
cation Act of 1965; 
‘‘(B) any entity with which the Secretary 
of Education enters into a contract under sec-
tion 456 of the Higher Education Act of 1965 
for origination, servicing, or collection described 
in subsection (b) of such section 456 and is en-
gaged in the provision of, or offering, servicing, 
or collections regardless of whether the Sec-
retary identifies the entity as a ‘servicer’ in 
such contract; 
‘‘(C) a private educational lender (as de-
fined under section 140(a)); 
‘‘(D) any other person or entity engaged in 
the business of securing, making, or extending 
postsecondary education loans on behalf of a 
person or entity described in subparagraph (A) 
or (C); or 
‘‘(E) any other holder of a postsecondary 
education loan other than the Secretary of Edu-
cation. 
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‘‘(4) POSTSECONDARY EDUCATION LOAN.—The 
term ‘postsecondary education loan’ means— 
‘‘(A) a private education loan (as defined 
under section 140(a)); or 
‘‘(B) a loan made, insured, or guaranteed 
under title IV of the Higher Education Act of 
1965. 
‘‘(5) QUALIFIED WRITTEN REQUEST.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
written request’ means a written correspond-
ence of a borrower (other than notice on a pay-
ment medium supplied by the postsecondary 
educational lender or servicer) transmitted by 
mail, facsimile, or electronically through an 
email address or website designated by the cov-
ered lender, servicer, or assignee to receive com-
munications from borrowers that— 
‘‘(i) includes, or otherwise enables the 
covered lender, servicer, or assignee to 
identify, the name and account of the bor-
rower; and 
‘‘(ii) includes, to the extent applica-
ble— 
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‘‘(I) sufficient detail regarding 
the information sought by the bor-
rower; or 
‘‘(II) a statement of the reasons 
for the belief of the borrower that 
there is an error regarding the ac-
count of the borrower. 
‘‘(B) CORRESPONDENCE
DELIVERED
TO 
OTHER ADDRESSES.— 
‘‘(i) IN
GENERAL.—A written cor-
respondence of a borrower is a qualified 
written request if the written correspond-
ence is transmitted to and received by a 
covered lender, servicer, or assignee at a 
mailing address, facsimile number, email 
address, or website address other than the 
address or number designated by that cov-
ered lender, servicer, or assignee r to re-
ceive communications from borrowers but 
the written correspondence meets the re-
quirements under clauses (i) and (ii) of 
subparagraph (A). 
‘‘(ii) DUTY TO TRANSFER.—A covered 
lender, servicer, or assignee shall, within a 
reasonable period of time, transfer a writ-
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ondary education loan or contract governing the 
servicing. 
‘‘(B) Applying payments to the borrower’s 
account pursuant to the terms of the postsec-
ondary education loan or the contract governing 
the servicing. 
‘‘(C) Maintaining account records for a 
postsecondary education loan. 
‘‘(D) Communicating with a borrower re-
garding a postsecondary education loan on be-
half of the covered lender, servicer, or assignee. 
‘‘(E) Interactions with a borrower, includ-
ing activities to help prevent default on obliga-
tions arising from postsecondary education 
loans, conducted to facilitate the activities de-
scribed in subparagraph (A) or (B). 
‘‘(b) SALE, TRANSFER, OR ASSIGNMENT.—If the 
sale, other transfer, assignment, or transfer of servicing 
obligations of a postsecondary education loan results in 
a change in the identity of the party to whom the borrower 
must send subsequent payments or direct any communica-
tions concerning the loan— 
‘‘(1) the transferor shall— 
‘‘(A) notify the borrower, in writing, in 
simple and understandable terms, not fewer 
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than 45 days before transferring a legally en-
forceable right to receive payment from the bor-
rower on such loan, of— 
‘‘(i) the sale or other transfer, assign-
ment, or transfer of servicing obligations; 
‘‘(ii) the identity of the transferee; 
‘‘(iii) the name, address, and email 
address of the party to whom subsequent 
payments or communications must be sent; 
‘‘(iv) the telephone numbers and 
websites of both the transferor and the 
transferee; 
‘‘(v) the effective date of the sale, 
transfer, or assignment; 
‘‘(vi) the date on which the transferor 
will stop accepting payment; and 
‘‘(vii) the date on which the transferee 
will begin accepting payment; 
‘‘(B) forward any payment from a bor-
rower with respect to such postsecondary edu-
cation loan to the transferee, immediately upon 
receiving such payment, during the 60-day pe-
riod beginning on the date on which the trans-
feror stops accepting payment of such postsec-
ondary education loan; 
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‘‘(C) provide to the transferee all borrower 
information and complete payment history in-
formation for any such postsecondary education 
loans; and 
‘‘(2) the transferee shall— 
‘‘(A) notify the borrower, in writing, in 
simple and understandable terms, not fewer 
than 45 days before acquiring a legally enforce-
able right to receive payment from the borrower 
on such loan, of— 
‘‘(i) the sale or other transfer, assign-
ment, or transfer of servicing obligations; 
‘‘(ii) the identity of the transferor; 
‘‘(iii) the name, address, and email 
address of the party to whom subsequent 
payments or communications must be sent; 
‘‘(iv) the telephone numbers and 
websites of both the transferor and the 
transferee; 
‘‘(v) the effective date of the sale, 
transfer, assignment, or transfer of serv-
icing obligations; 
‘‘(vi) the date on which the transferor 
will stop accepting payment; and 
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‘‘(vii) the date on which the transferee 
will begin accepting payment; 
‘‘(B) accept as on-time and may not im-
pose any late fee or finance charge for any pay-
ment from a borrower with respect to such 
postsecondary education loan that is forwarded 
from the transferor during the 90-day period 
beginning on the date on which the transferor 
stops accepting payment, if the transferor re-
ceives such payment on or before the applicable 
due date, including any grace period; 
‘‘(C) provide borrowers a simple, online 
process for transferring existing electronic fund 
transfer authority; and 
‘‘(D) honor any promotion or benefit avail-
able or granted to the borrower or advertised by 
the previous owner or transferor of such post-
secondary education loan. 
‘‘(c) MATERIAL CHANGE IN MAILING ADDRESS OR 
PROCEDURE FOR HANDLING PAYMENTS.— 
‘‘(1) IN
GENERAL.—If a covered lender, 
servicer, or assignee makes a change in the mailing 
address, office, or procedures for handling payments 
with respect to any postsecondary education loan, 
the covered lender, servicer, or assignee shall clearly 
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and conspicuously notify the borrower in writing and 
through the borrower’s preferred or designated 
method of communication not less than 45 calendar 
days in advance of such change. 
‘‘(2) BORROWER PROTECTION WINDOW.—If a 
change described in paragraph (1) causes a delay in 
the crediting of the account of the borrower made 
during the 90-day period following the date on which 
such change took effect, the covered lender, servicer, 
or assignee may not impose on the borrower any 
negative consequences, including negative credit re-
porting, lost eligibility in borrower benefits, late fees, 
interest capitalization, or other financial injury. 
‘‘(3) LOAN FORGIVENESS PROGRAMS.—For pur-
poses of any public or private loan forgiveness pro-
gram that applies to a postsecondary education loan, 
such program shall not be tolled during the 90-day 
period following the date on which a change de-
scribed under paragraph (1) takes effect. 
‘‘(d) INTEREST RATE AND TERM CHANGES FOR CER-
TAIN POSTSECONDARY EDUCATION LOANS.— 
‘‘(1) NOTIFICATION REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (3), a covered lender, servicer, or as-
signee shall provide written notice to a borrower 
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of any material change in the terms of the post-
secondary education loan, including an increase 
in the interest rate, not later than 45 days be-
fore the effective date of the change or increase. 
‘‘(B) MATERIAL CHANGES IN TERMS.—The 
Bureau shall, by regulation, establish guidelines 
for determining which changes in terms are ma-
terial under subparagraph (A). 
‘‘(2) LIMITS ON INTEREST RATE AND FEE IN-
CREASES
APPLICABLE
TO
OUTSTANDING
BAL-
ANCE.—Except as provided in paragraph (3), a cov-
ered lender, servicer, or assignee may not increase 
the interest rate or other fee applicable to an out-
standing balance on a postsecondary education loan. 
‘‘(3) EXCEPTIONS.—The requirements under 
paragraphs (1) and (2) shall not apply to— 
‘‘(A) an increase based on an applicable 
variable interest rate incorporated in the terms 
of a postsecondary education loan that provides 
for changes in the interest rate according to op-
eration of an index that is not under the control 
of the covered lender, servicer, or assignee and 
is published for viewing by the general public; 
‘‘(B) an increase in interest rate due to the 
completion of a workout or temporary hardship 
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‘‘(i) the borrower withdraws the bor-
rower’s authorization of the prearranged 
recurring electronic funds transfer plan; 
and 
‘‘(ii) after withdrawal of the bor-
rower’s authorization and prior to increas-
ing the interest rate, the covered lender, 
servicer, or assignee has provided the bor-
rower with clear and conspicuous disclo-
sure of the impending change in borrower’s 
interest rate and a reasonable opportunity 
to reauthorize the prearranged electronic 
funds transfers plan. 
‘‘(e) PAYMENT INFORMATION.— 
‘‘(1) STATEMENT REQUIRED WITH EACH BILL-
ING CYCLE.—A covered lender, servicer, or assignee 
for each borrower’s account that is being serviced by 
the covered lender, servicer, or assignee and that in-
cludes a postsecondary education loan shall transmit 
to the borrower, for each billing cycle during which 
there is an outstanding balance in that account, a 
billing statement that includes— 
‘‘(A) the interest rate, principal balance, 
minimum monthly payment, and payment due 
date for each loan; 
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‘‘(B) the outstanding balance in the ac-
count and each loan at the beginning of the bill-
ing cycle; 
‘‘(C) the total amount credited to the ac-
count and each loan during the billing cycle; 
‘‘(D) the total amount of unpaid interest 
for the account and each loan; 
‘‘(E) the amount of any fee added to the 
account during the billing cycle, itemized to 
show each individual fee amount and reason for 
each fee; 
‘‘(F) the address, email address, and 
phone number of the covered lender, servicer, or 
assignee to which the borrower may direct bill-
ing inquiries; 
‘‘(G) the amount of any payments or other 
credits during the billing cycle that was applied 
respectively to the principal and to interest for 
each loan; 
‘‘(H) the manner, pursuant to subsection 
(g), in which payments will be allocated among 
multiple loans if the borrower does not provide 
specific payment instructions; 
‘‘(I) whether each loan is in deferment or 
forbearance; 
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‘‘(J) information on how to file a com-
plaint with the Bureau and with the ombuds-
man designated pursuant to section 1035 of the 
Consumer Financial Protection Act of 2010 
and the Department of Education; 
‘‘(K) for any borrower considered to be at 
risk, as described in subsection (j)(1), a state-
ment that a repayment specialist office or unit 
designated under subsection (j) is available to 
answer inquiries related to alternative repay-
ment options, including the toll-free telephone 
number to contact the specialist pursuant to 
subsection (j)(3); and 
‘‘(L) any other information determined ap-
propriate by rule of the Bureau. 
‘‘(2) DISCLOSURE OF PAYMENT DEADLINES.— 
In the case of a postsecondary education loan ac-
count under which a late fee or charge may be im-
posed due to the failure of the borrower to make 
payment on or before the due date for such pay-
ment, the billing statement required under para-
graph (1) with respect to the account shall include, 
in a conspicuous location on the billing statement, 
the date on which the payment is due or, if dif-
ferent, the date on which a late fee will be charged, 
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together with the amount of the late fee to be im-
posed if payment is made after that date. 
‘‘(f) APPLICATION OF PAYMENTS.— 
‘‘(1) APPLY PAYMENT ON DATE RECEIVED.— 
Unless otherwise directed by the borrower, a covered 
lender, servicer, or assignee shall apply payments to 
a borrower’s account on the date the payment is re-
ceived. 
‘‘(2) PROMULGATION OF RULES.—The Bureau 
may issue rules for the application of postsecondary 
education loan payments that— 
‘‘(A) implements the requirements in this 
section; 
‘‘(B) minimizes the amount of fees and in-
terest incurred by the borrower and the total 
loan amount paid by the borrower; 
‘‘(C) minimizes delinquencies, assignments 
to collection, and charge offs; 
‘‘(D) requires covered lender, servicer, or 
assignee to apply payments on the date re-
ceived; and 
‘‘(E) allows the borrower to instruct the 
covered lender, servicer, or assignee to apply 
payments in a manner preferred by the bor-
rower. 
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‘‘(3) METHOD
THAT
BEST
BENEFITS
BOR-
ROWER.—In promulgating the rules under para-
graph (2), the Bureau shall choose the allocation 
method that best benefits the borrower and is com-
patible with existing repayment options. 
‘‘(g) ALLOCATION OF PAYMENTS AMONG MULTIPLE 
LOANS.— 
‘‘(1) ALLOCATION OF UNDERPAYMENTS.—Un-
less otherwise directed by the borrower, upon receipt 
of a payment that does not satisfy the full amount 
due for each postsecondary education loan, the cov-
ered lender, servicer, or assignee shall allocate 
amounts in a manner that minimizes negative con-
sequences, including negative credit reporting and 
late fees, and, where multiple loans share an equal 
stage of delinquency, the covered lender, servicer, or 
assignee shall first allocate payment to the postsec-
ondary education loan with the smallest monthly 
payment, and then, after satisfying that monthly 
payment, to each successive loan bearing the next 
highest monthly payment, until the payment is ex-
hausted. A borrower may instruct or expressly au-
thorize a covered lender, servicer, or assignee to allo-
cate payments in a different manner. 
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‘‘(2) ALLOCATION OF EXCESS AMOUNTS.—Un-
less otherwise directed by the borrower, upon receipt 
of a payment exceeding the total amount due among 
all the borrower’s postsecondary education loans, the 
covered lender, servicer, or assignee shall satisfy the 
amounts due for each loan, and then allocate 
amounts in excess of the minimum payment amount 
first to the postsecondary education loan balance 
bearing the highest annual percentage rate, and 
then, once that loan is repaid, to each successive 
postsecondary education loan bearing the next high-
est annual percentage rate, until the payment is ex-
hausted. A borrower may instruct or expressly au-
thorize a covered lender, servicer, or assignee to allo-
cate such excess payments in a different manner. 
‘‘(3) ALLOCATION OF EXACT PAYMENTS.—Un-
less otherwise directed by the borrower upon receipt 
of a payment that exactly satisfies the monthly pay-
ments for each loan, the covered lender, servicer, or 
assignee shall allocate payments to satisfy each 
monthly payment. 
‘‘(4) PROMULGATION OF RULES.—The Bureau 
may issue rules for the allocation of payments 
among multiple postsecondary education loans that 
comply with the requirements of subsection (f)(2). 
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‘‘(5) METHOD
THAT
BEST
BENEFITS
BOR-
ROWER.—In promulgating the rules under para-
graph (4), the Director shall choose the allocation 
method that best benefits the borrower and is com-
patible with existing repayment options. 
‘‘(h) LATE FEES.— 
‘‘(1) IN
GENERAL.—A late fee may not be 
charged to a borrower for a postsecondary education 
loan under any of the following circumstances, either 
individually or in combination: 
‘‘(A) On a per-loan basis when a borrower 
has multiple postsecondary education loans. 
‘‘(B) In an amount greater than 4 percent 
of the amount of the payment past due. 
‘‘(C) Before the end of the 15-day period 
beginning on the date the payment is due. 
‘‘(D) More than once with respect to a sin-
gle late payment. 
‘‘(E) The borrower fails to make a sin-
gular, non-successive regularly scheduled pay-
ment on the postsecondary education loan. 
‘‘(2) COORDINATION WITH SUBSEQUENT LATE 
FEES.—No late fee may be charged to a borrower 
for a postsecondary education loan relating to an in-
sufficient payment if the payment is made on or be-
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fore the due date of the payment, or within any ap-
plicable grace period for the payment, if the insuffi-
ciency is attributable only to a late fee relating to 
an earlier payment, and the payment is otherwise a 
full payment for the applicable period. 
‘‘(3) PAYMENTS AT LOCAL BRANCHES.—If the 
loan holder, in the case of a postsecondary education 
loan account, is a financial institution that main-
tains a branch or office at which payments on any 
such account are accepted from the borrower in per-
son, the date on which the borrower makes a pay-
ment on the account at such branch or office shall 
be considered to be the date on which the payment 
is made for purposes of determining whether a late 
fee may be imposed due to the failure of the bor-
rower to make payment on or before the due date 
for such payment. 
‘‘(i) BORROWER INQUIRIES.— 
‘‘(1) DUTY OF COVERED LENDER, SERVICER, 
OR ASSIGNEE TO RESPOND TO BORROWER INQUIR-
IES.— 
‘‘(A) NOTICE OF RECEIPT OF REQUEST.— 
If a borrower submits a qualified written re-
quest to the covered lender, servicer, or as-
signee for information relating to the servicing 
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of the postsecondary education loan, the cov-
ered lender, servicer, or assignee shall provide a 
written response acknowledging receipt of the 
qualified written request within 5 business days 
unless any action requested by the borrower is 
taken within such period. 
‘‘(B) ACTION
WITH
RESPECT
TO
IN-
QUIRY.—Not later than 30 business days after 
the receipt from a borrower of a qualified writ-
ten request under subparagraph (A) and, if ap-
plicable, before taking any action with respect 
to the qualified written request of the borrower, 
the covered lender, servicer, or assignee shall— 
‘‘(i) make appropriate corrections in 
the account of the borrower, including the 
crediting of any late fees, and transmit to 
the borrower a written notification of such 
correction (which shall include the name 
and toll-free or collect-call telephone num-
ber of a representative of the covered lend-
er, servicer, or assignee who can provide 
assistance to the borrower); 
‘‘(ii) after conducting an investigation, 
provide the borrower with a written expla-
nation or clarification that includes— 
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‘‘(I) to the extent applicable, a 
statement of the reasons for which the 
covered lender, servicer, or assignee 
believes the account of the borrower is 
correct as determined by the covered 
lender, servicer, or assignee; and 
‘‘(II) the name and toll-free or 
collect-call telephone number of an in-
dividual employed by, or the office or 
department of, the covered lender, 
servicer, or assignee who can provide 
assistance to the borrower; or 
‘‘(iii) after conducting an investiga-
tion, provide the borrower with a written 
explanation or clarification that includes— 
‘‘(I) information requested by the 
borrower or explanation of why the in-
formation requested is unavailable or 
cannot be obtained by the covered 
lender, servicer, or assignee; and 
‘‘(II) the name and toll-free or 
collect-call telephone number of an in-
dividual employed by, or the office or 
department of, the covered lender, 
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servicer, or assignee who can provide 
assistance to the borrower. 
‘‘(C) LIMITED EXTENSION OF RESPONSE 
TIME.— 
‘‘(i) IN GENERAL.—There may be 1 
extension of the 30-day period described in 
subparagraph (B) of not more than 15 
days if, before the end of such 30-day pe-
riod, the covered lender, servicer, or as-
signee notifies the borrower of the exten-
sion and the reasons for the delay in re-
sponding. 
‘‘(ii) REPORTS
TO
BUREAU.—Each 
covered lender, servicer, or assignee shall, 
on an annual basis, report to the Bureau 
the aggregate number of extensions sought 
by the such covered lender, servicer, or as-
signee under clause (i). 
‘‘(2) PROTECTION
AGAINST
NEGATIVE
CON-
SEQUENCES.—During the 60-day period beginning 
on the date on which a covered lender, servicer, or 
assignee receives a qualified written request from a 
borrower relating to a dispute regarding payments 
by the borrower, a covered lender, servicer, or as-
signee may not impose any negative consequences on 
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the borrower relating to the subject of the qualified 
written request or to such period including— 
‘‘(A) providing negative credit information 
to any consumer reporting agency (as defined 
in section 603 of the Fair Credit Reporting 
Act); 
‘‘(B) lost eligibility for a borrower benefit; 
‘‘(C) late fees; 
‘‘(D) interest capitalization; or 
‘‘(E) other financial injury. 
‘‘(j) REPAYMENT SPECIALISTS FOR AT-RISK BOR-
ROWERS.— 
‘‘(1) AT-RISK BORROWERS.—A covered lender, 
servicer, or assignee shall designate an office or 
other unit to act as a repayment specialist regarding 
postsecondary education loans for— 
‘‘(A) any borrower who— 
‘‘(i) becomes 30 calendar days or 
more delinquent under the postsecondary 
education loan; or 
‘‘(ii) notifies the covered lender, 
servicer, or assignee that the borrower is 
having difficulty making payment; 
‘‘(B) any borrower who requests informa-
tion related to options to reduce or suspend the 
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borrower’s monthly payment, or otherwise indi-
cates that the borrower is experiencing or is 
about to experience financial hardship or dis-
tress; 
‘‘(C) any borrower who has not completed 
the program of study for which the borrower re-
ceived the loans; 
‘‘(D) any borrower who is enrolled in dis-
cretionary forbearance for more than nine of 
the previous 12 months; 
‘‘(E) any borrower who has rehabilitated 
or consolidated one or more postsecondary edu-
cation loans out of default within the prior 24 
months; 
‘‘(F) a borrower who seeks information re-
garding, seeks to enter an agreement for, or 
seeks to resolve an issue under a repayment op-
tion that requires subsequent submission of 
supporting documentation; 
‘‘(G) a borrower who seeks to modify the 
terms of the repayment of the postsecondary 
education loan because of hardship; and 
‘‘(H) any borrower or segment of bor-
rowers determined by the Bureau, in consulta-
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tion with the Secretary of Education, to be at 
risk. 
‘‘(2) TRAINING.—Staff of the repayment spe-
cialist office or unit designated under paragraph (1) 
shall— 
‘‘(A) receive rigorous, ongoing training re-
lated to available repayment plans, loan forgive-
ness, and cancellation and discharge options; 
and 
‘‘(B) be trained to— 
‘‘(i) assess the borrower’s long-term 
and short-term financial situation in dis-
cussing alternative repayment options with 
borrowers; 
‘‘(ii) inform borrowers, when there is 
sufficient information to determine that a 
borrower may be eligible, about closed- 
school discharge, discharge under defense 
to repayment, or total and permanent dis-
ability discharge prior to informing the 
borrower about any other options for re-
payment; and 
‘‘(iii) inform borrowers about alter-
native repayment options, prior to dis-
cussing forbearance and deferment. 
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‘‘(3) TOLL-FREE TELEPHONE NUMBER.—Each 
covered lender, servicer, or assignee shall maintain a 
toll-free telephone number that shall— 
‘‘(A) connect directly to the repayment 
specialist office or unit designated under para-
graph (1); 
‘‘(B) be made available on the primary 
internet website of the covered lender, servicer, 
or assignee, on monthly billing statements, and 
any required disclosures; and 
‘‘(C) not subject borrowers to unreasonable 
call wait times. 
‘‘(4) COMPENSATION.—Staff of the repayment 
specialist office or unit designated under paragraph 
(1) shall not be compensated on the basis of the vol-
ume of calls or accounts handled, dollar amounts 
collected, brevity of calls, or in any other manner 
that may encourage undue haste and lack of dili-
gence or quality customer service. 
‘‘(k) ACTIONS WHEN BORROWER IS HAVING DIF-
FICULTY MAKING PAYMENT
OR IS 60 DAYS DELIN-
QUENT.— 
‘‘(1) IN GENERAL.—Not more than 5 days after 
a borrower notifies a covered lender, servicer, or as-
signee that the borrower is having difficulty making 
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payment or a borrower becomes 60 days delinquent 
on a postsecondary education loan, the repayment 
specialist office or unit designated under subsection 
(j) shall— 
‘‘(A) complete a full review of the bor-
rower’s postsecondary education loan and make 
a reasonable effort to obtain the information 
necessary to determine— 
‘‘(i) if the borrower is eligible for an 
alternative repayment option, including 
Federal Direct Consolidation Loans under 
part D of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1087a et seq.), as 
applicable; 
‘‘(ii) if the borrower is eligible for 
servicemember or veteran benefits under 
the Servicemembers Civil Relief Act (50 
U.S.C. App. 501 et seq.) or other Federal 
or State law related to postsecondary edu-
cation loans; and 
‘‘(iii) if the postsecondary education 
loan is eligible for discharge by the Sec-
retary of Education; 
‘‘(B) make a good faith effort to establish 
live contact with the borrower to provide the 
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borrower information about alternative repay-
ment options and benefits for which the bor-
rower is eligible, including all terms, conditions, 
and fees or costs associated with such repay-
ment plan; 
‘‘(C) provide to the borrower in writing, in 
simple and understandable terms, such informa-
tion required by subparagraph (B); 
‘‘(D) allow the borrower not less than 30 
days to apply for an alternative repayment op-
tion or benefits, if eligible; 
‘‘(E) notify the borrower that a service-
member and veterans liaison designated under 
subsection (l) is available to answer inquiries 
about servicemember and veteran benefits re-
lated to postsecondary education loans, includ-
ing the toll-free telephone number to contact 
the liaison; and 
‘‘(F) notify the borrower that a repayment 
specialist office or unit designated under sub-
section (j) is available to answer inquiries re-
lated to alternative repayment options, includ-
ing the toll-free telephone number to contact 
the specialist. 
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‘‘(2) FORBEARANCE OR DEFERMENT.—If, after 
receiving information about alternative repayment 
options from the repayment specialist, a borrower 
notifies the covered lender, servicer, or assignee that 
a long-term alternative repayment option is not ap-
propriate, the covered lender, servicer, or assignee 
may comply with this subsection by providing the 
borrower, in writing, in simple and understandable 
terms, information about short-term options to ad-
dress an anticipated short-term difficulty in making 
payments, such as forbearance or deferment options, 
including all terms, conditions, and fees or costs as-
sociated with such options. 
‘‘(3) NOTIFICATION PROCESS.— 
‘‘(A) IN GENERAL.—Each covered lender, 
servicer, or assignee shall establish a process, in 
accordance with paragraph (1), for a borrower 
to notify the covered lender, servicer, or as-
signee that— 
‘‘(i) the borrower is having difficulty 
making payments on a postsecondary edu-
cation loan; and 
‘‘(ii) a long-term alternative repay-
ment option is not appropriate. 
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‘‘(B) BUREAU
REQUIREMENTS.—The Di-
rector of the Bureau shall, based on consumer 
testing and in consultation with the Secretary 
of Education, promulgate rules establishing 
minimum 
standards 
for 
covered 
lenders, 
servicers, or assignees in carrying out the re-
quirements of this subsection and a model form 
for borrowers to notify a covered lender, 
servicer, or assignee of the information under 
this subsection. 
‘‘(l) SERVICEMEMBERS, VETERANS, AND POSTSEC-
ONDARY EDUCATION LOANS.— 
‘‘(1) SERVICEMEMBER
AND
VETERANS
LIAI-
SON.—Each covered lender, servicer, or assignee 
shall designate an employee to act as the service-
member and veterans liaison who is responsible for 
answering inquiries from servicemembers and vet-
erans, and is specially trained on servicemember and 
veteran benefits under the Servicemembers Civil Re-
lief Act and other Federal or State laws related to 
postsecondary education loans. 
‘‘(2) TOLL-FREE TELEPHONE NUMBER.—Each 
covered lender, servicer, or assignee shall maintain a 
toll-free telephone number that shall— 
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‘‘(A) connect directly to the servicemember 
and veterans liaison designated under para-
graph (1); 
‘‘(B) be made available on the primary 
internet website of the covered lender, servicer, 
or assignee and on monthly billing statements; 
and 
‘‘(C) not subject borrowers to unreasonable 
call wait times. 
‘‘(3) PROHIBITION ON CHARGE OFFS AND DE-
FAULT.—A covered lender, servicer, or assignee may 
not charge off or report a postsecondary education 
loan as delinquent, assigned to collection (internally 
or by referral to a third party), in default, or 
charged off to a credit reporting agency if the bor-
rower is on active duty in the Armed Forces (as de-
fined in section 101(d)(1) of title 10, United States 
Code) serving in a combat zone (as designated by 
the President under section 112(c) of the Internal 
Revenue Code of 1986). 
‘‘(4) ADDITIONAL LIAISONS.—The Director, in 
consultation with the Secretary, shall determine ad-
ditional entities with whom borrowers interact, in-
cluding guaranty agencies, that shall designate an 
employee to act as the servicemember and veterans 
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liaison who is responsible for answering inquiries 
from servicemembers and veterans and is specially 
trained on servicemembers and veteran benefits and 
option under the Servicemembers Civil Relief Act. 
‘‘(m) BORROWER’S LOAN HISTORY.— 
‘‘(1) IN GENERAL.—A covered lender, servicer, 
or assignee shall make available in a secure elec-
tronic form usable by borrowers, or in writing upon 
request, the loan history of each borrower for each 
postsecondary education loan, separately desig-
nating— 
‘‘(A) payment history, including repayment 
plan and payments— 
‘‘(i) made on such loan to previous 
covered lender, servicer, or assignee; and 
‘‘(ii) qualifying toward a loan forgive-
ness program and designating such pro-
gram; 
‘‘(B) loan history, including any forbear-
ances, deferrals, delinquencies, assignment to 
collection, and charge offs; 
‘‘(C) annual percentage rate history; 
‘‘(D) key loan terms, including application 
of payments to interest, principal, and fees, 
origination date, principal, capitalized interest, 
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annual percentage rate, including any cap, loan 
term, and any contractual incentives; 
‘‘(E) amount due to pay off the out-
standing balance; and 
‘‘(F) any other items determined appro-
priate by rule of the Bureau. 
‘‘(2) ORIGINAL
DOCUMENTATION.—A covered 
lender, servicer, or assignee shall make available to 
the borrower, if requested, at no charge, copies of 
the original loan documents and the promissory note 
for each postsecondary education loan. 
‘‘(n) ADDITIONAL SERVICING STANDARDS.— 
‘‘(1) PROHIBITIONS.—A covered lender, servi-
cer, or assignee may not— 
‘‘(A) charge a fee for responding to a 
qualified written request under this paragraph; 
‘‘(B) fail to take timely action to respond 
to a qualified written request from a borrower 
to correct an error relating to an allocation of 
payment or the payoff amount of the postsec-
ondary education loan; 
‘‘(C) fail to take reasonable steps to avail 
the borrower of all possible alternative repay-
ment arrangements to avoid default; 
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‘‘(D) fail to perform the obligations re-
quired under title IV of the Higher Education 
Act of 1965; 
‘‘(E) fail to respond within 10 business 
days to a request from a borrower to provide 
the name, address, and other relevant contact 
information of the loan holder of the borrower’s 
postsecondary education loan or, for a Federal 
Direct Loan or a Federal Perkins Loan, the 
Secretary of Education, or the institution of 
higher education who made the loan, respec-
tively; 
‘‘(F) fail to comply with any applicable re-
quirement of the Servicemembers Civil Relief 
Act; 
‘‘(G) charge a convenience, processing, or 
any other fee for payments made electronically 
or by telephone; 
‘‘(H) fail to comply with any other obliga-
tion that the Bureau, by regulation, has deter-
mined to be appropriate to carry out the con-
sumer protection purposes of this paragraph; or 
‘‘(I) fail to perform other standard serv-
icing duties and functions. 
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‘‘(2) BUSINESS HOURS.—Covered lenders, servi-
cers, or assignees shall be open for borrower inquir-
ies and outreach— 
‘‘(A) during normal business hours, Mon-
day through Friday; 
‘‘(B) after business hours, Monday through 
Friday, including for not less than 3 hours 
after 5:00 p.m. in all continental United States 
time zones; 
‘‘(C) for not less than 6 hours on Satur-
day; and 
‘‘(D) for not less than 6 hours on Sunday. 
‘‘(3) ADDITIONAL
STANDARDS.—The Bureau 
may issue rules establishing additional servicing 
standards to reduce delinquencies, assignment to col-
lections, defaults, and charge offs, and to ensure 
borrowers understand their rights and obligations 
related to their postsecondary education loans. 
‘‘(o) PROHIBITION ON LIMITING BORROWER LEGAL 
ACTION
BY
COVERED
LENDER, SERVICER, OR
AS-
SIGNEE.— 
‘‘(1) WAIVER OF RIGHTS AND REMEDIES.—Any 
rights and remedies available to borrowers against 
covered lenders, servicers, or assignees may not be 
waived by any agreement, policy, or form, including 
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by a mandatory predispute arbitration agreement or 
class action waiver. 
‘‘(2) 
PREDISPUTE
ARBITRATION
AGREE-
MENTS.—No limitation or restriction on the ability 
of a borrower to pursue a claim in court with respect 
to a postsecondary education loan, including manda-
tory predispute arbitration agreements and class ac-
tion waivers, shall be valid or enforceable by a cov-
ered lender, servicer, or assignee, including as a 
third-party beneficiary or by estoppel. 
‘‘(p) PREEMPTION.—Nothing in this paragraph may 
be construed to preempt any provision of State law regard-
ing postsecondary education loans where the State law 
provides stronger consumer protections. 
‘‘(q) CIVIL LIABILITY.—A covered lender, servicer, or 
assignee that fails to comply with any requirement im-
posed under this paragraph shall be deemed a creditor 
that has failed to comply with a requirement under this 
chapter for purposes of liability under section 130 and 
such covered lender, servicer, or assignee shall be subject 
to the liability provisions under such section, including the 
provisions under paragraphs (1), (2)(A)(i), (2)(B), and 
(3) of section 130(a). 
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‘‘(r) ELIGIBILITY
FOR DISCHARGE.—The Bureau 
shall issue rules requiring covered lender, servicer, or as-
signee to— 
‘‘(1) identify and contact borrowers who may be 
eligible for student loan discharge by the Secretary, 
including under section 437 of the Higher Education 
Act of 1965; and 
‘‘(2) provide the borrower, in writing, in simple 
and understandable terms, information about obtain-
ing such discharge. 
‘‘(s) MODEL DISCLOSURE FORM FOR ALTERNATIVE 
REPAYMENT OPTIONS, FORBEARANCE, AND DEFERMENT 
OPTIONS.—Not later than 2 years after the date of enact-
ment of this section, the Director of the Bureau shall, 
based on consumer testing and in consultation with the 
Secretary of Education, develop and issue, pursuant to a 
formal rulemaking, model forms to allow borrowers to 
compare alternative repayment options, forbearance, and 
deferment options with the borrower’s existing repayment 
plan with respect to a postsecondary education loan. In 
developing such forms, the Director shall consider and 
evaluate the following for inclusion: 
‘‘(1) The total amount to be paid over the life 
of the loan. 
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‘‘(2) The total amount in interest to be paid 
over the life of the loan. 
‘‘(3) The monthly payment amount. 
‘‘(4) The expected pay-off date. 
‘‘(5) Other related fees and costs, as applicable. 
‘‘(6) Eligibility requirements, and how the bor-
rower can apply for an alternative repayment option, 
forbearance, or deferment option. 
‘‘(7) Any relevant consequences due to action or 
inaction, such as default, including any actions that 
would result in the loss of eligibility for alternative 
repayment options, forbearance, or deferment op-
tions. 
‘‘(t) STUDENT
LOAN
SERVICING
INTERAGENCY 
WORKING GROUP.— 
‘‘(1) IN
GENERAL.—Not later than 30 days 
after the date of enactment of this section, the Di-
rector of the Bureau shall establish a student loan 
servicing interagency working group co-chaired by 
the Director and the Secretary of Education and in-
cluding the Chief Operating Officer of the Office of 
Federal Student Aid of the Department of Edu-
cation, the Director of the Office of Management 
and Budget, the Secretary of the Treasury, and the 
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heads of any other relevant Federal departments or 
agencies. 
‘‘(2) ADVISORY REPORT ON RULEMAKING.— 
‘‘(A) IN
GENERAL.—Not later than 120 
days after the date the working group under 
paragraph (1) is established, the working group 
shall publish an advisory report making rec-
ommendations to the Director of the Bureau re-
lated to the promulgation of regulations under 
this section with respect to entities with which 
the Secretary has entered into a contract under 
section 456 of the Higher Education Act of 
1965. 
‘‘(B) PUBLIC
FEEDBACK.—Following the 
publication of the advisory report required 
under subparagraph (A), the working group 
shall accept, for not less than 60 days, from the 
public specific feedback on the recommenda-
tions included in the report. 
‘‘(3) PUBLICATION
OF
FINAL
RECOMMENDA-
TIONS.—Not later than 30 days following the con-
clusion of the public feedback process described in 
paragraph (2)(B), the working group shall publish 
final recommendations for the Director of the Bu-
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reau related to the promulgation of regulations 
under this section. 
‘‘(4) POLICY DIRECTION TO FEDERAL STUDENT 
AID.—The working group shall develop and propose 
policy direction for the Secretary of Education to 
issue to the Office of Federal Student Aid, through 
which the Office of Federal Student Aid shall incor-
porate, into contracts awarded under section 456 of 
the Higher Education Act of 1965, applicable re-
quirements and standards promulgated under this 
section. 
‘‘(5) MEETINGS.—After the working group pub-
lishes final recommendations under paragraph (3), 
the working group shall meet not less often than 
once per year including to— 
‘‘(A) evaluate the application of regulations 
promulgated under this section on entities with 
which the Secretary has entered into a contract 
under section 456 of the Higher Education Act 
of 1965; 
‘‘(B) evaluate the Office of Federal Stu-
dent Aid’s implementation of policy direction 
developed pursuant to paragraph (4); 
‘‘(C) develop and implement an oversight 
plan to ensure compliance by entities with 
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which the Secretary has entered into a contract 
under section 456 of the Higher Education Act 
of 1965 with policy direction developed under 
paragraph (4) and regulations promulgated 
under this section; and 
‘‘(D) undertake other activities to improve 
coordination among the members of the work-
ing group as it relates to the Secretary’s admin-
istration of the Federal Direct Loan Program. 
‘‘(6) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to alter, limit, or 
restrict the Bureau’s obligations under chapter 5 of 
title 5, United States Code (commonly known as the 
‘Administrative Procedures Act’), including the Di-
rector’s obligation to provide notice, solicit public 
comment, and respond to such comment when 
issuing regulations.’’; and 
(3) in the table of contents, by striking the item 
relating to section 140A and inserting the following: 
‘‘140A. Postsecondary education loan borrower bill of rights. 
‘‘140B. Procedure for timely settlement of estates of decedent obligors.’’. 
SEC. 3. STANDARDS FOR REPORTING STUDENT LOAN IN-
FORMATION 
TO 
CONSUMER 
REPORTING 
AGENCIES. 
Section 623 of the Fair Credit Reporting Act (15 
U.S.C. 1681s–2) is amended— 
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(1) by adding at the end the following: 
‘‘(f) REPORTING INFORMATION RELATED TO STU-
DENT LOANS.— 
‘‘(1) STANDARDS
FOR
REPORTING.—The Bu-
reau, in consultation with the Secretary of Edu-
cation, shall issue rules to establish standards for 
the furnishing of information related to student 
loans to a consumer reporting agency and any fur-
nisher of such information shall comply with such 
rules. 
‘‘(2) SPECIFIC
STANDARDS.—In issuing rules 
under paragraph (1), the Bureau shall specifically 
establish standards for the furnishing of information 
related to— 
‘‘(A) the transfer of the servicing of a stu-
dent loan to a new servicer; 
‘‘(B) the loan term or duration of a stu-
dent loan; or 
‘‘(C) a student loan being placed in for-
bearance. 
‘‘(3) RESPONSIBILITIES OF THE PRIVATE EDU-
CATION LOAN OMBUDSMAN.— 
‘‘(A) 
MONITORING
CONSUMER
COM-
PLAINTS.—The Private Education Loan Om-
budsman of the Bureau (in this subsection re-
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ferred to as the ‘Ombudsman’) shall monitor 
complaints from consumers to assess compli-
ance with the rules issued under paragraph (1) 
and, if the Ombudsman determines it appro-
priate, recommend supervisory or enforcement 
actions to the Director of the Bureau with re-
spect to a person the Ombudsman determines 
may be in violation of such rules. 
‘‘(B) RECOMMENDATIONS
ON
DISPUTE 
PROCESS.—The Ombudsman shall issue peri-
odic recommendations to the Director of the 
Bureau and the Congress on regulatory and 
statutory changes that the Ombudsman believes 
would improve the process under this section 
for disputing information related to student 
loans that has been furnished to a consumer re-
porting agency. 
‘‘(4) MONITORING COMPLIANCE.—The Director 
of the Bureau shall monitor compliance with the 
rules issued under paragraph (1) and, if the Direc-
tor determines that a person may be in violation of 
such rules, take such supervisory or enforcement ac-
tions as the Director determines appropriate. 
‘‘(5) STUDENT LOAN DEFINED.—In this sub-
section, the term ‘student loan’ means— 
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‘‘(A) a private education loan, as defined 
in section 140(a) of the Truth in Lending Act; 
and 
‘‘(B) a loan made, insured, or guaranteed 
under title IV of the Higher Education Act of 
1965.’’; and 
(2) in subsection (c)(2), by striking ‘‘subsection 
(b) of this section’’ and inserting ‘‘subsection (b) or 
(f) of this section (including any regulations issued 
thereunder)’’. 
SEC. 4. INSTITUTIONAL CERTIFICATION. 
(a) IN GENERAL.—Section 128(e) of the Truth in 
Lending Act (15 U.S.C. 1638(e)) is amended— 
(1) by striking paragraph (3) and inserting the 
following: 
‘‘(3) 
PRIVATE
LOAN
CERTIFICATION
RE-
QUIRED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a private educational lender 
shall, before consummating any loan with re-
spect to a student attending an institution of 
higher education, obtain, from the institution of 
higher education the student intends to attend, 
a private loan certification as described in sub-
paragraph (E). 
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‘‘(B) EXCEPTION.—A private educational 
lender may consummate a private education 
loan with respect to a student attending an in-
stitution of higher education without obtaining 
a private loan certification as required in sub-
paragraph (A) if, in, before the end of the 15- 
day period following the date on which the pri-
vate educational lender requests a certification 
from such institution, such institution does 
not— 
‘‘(i) notify the private educational 
lender of the refusal of the institution to 
provide such certification; or 
‘‘(ii) notify the private educational 
lender that more time will be needed to 
comply with the request for the private 
loan certification. 
‘‘(C) PRIVATE LOAN CERTIFICATION CON-
TENTS.—Any private loan certification provided 
by an institution of higher education pursuant 
to subparagraph (A) shall include— 
‘‘(i) the enrollment status of the stu-
dent; 
‘‘(ii) the cost of attendance at the in-
stitution for the student as determined by 
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the institution under part F of title IV of 
the Higher Education Act of 1965; and 
‘‘(iii) the difference between— 
‘‘(I) such cost of attendance; and 
‘‘(II) the total estimated amount 
of financial assistance for such stu-
dent, including assistance received 
under title IV of the Higher Edu-
cation Act of 1965. 
‘‘(D) CONSUMMATION OF LOAN WITHOUT 
CERTIFICATION.—If a private educational lend-
er consummates a loan in violation of this sub-
section, such private education lender shall re-
port the consummation of such loan in a man-
ner determined by the Bureau. 
‘‘(E) INSTITUTION PROVISION OF CERTIFI-
CATION.—If a private educational lender sub-
mits a request to an institution of higher edu-
cation for a private loan certificate, such insti-
tution of higher education shall, not later than 
the end of the 15-day period beginning on the 
date such institution receives such request— 
‘‘(i) provide such certification; 
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‘‘(ii) notify the private educational 
lender that the institution refuses to pro-
vide such certification; or 
‘‘(iii) notify the private educational 
lender that more time will be needed to 
comply with the request for the private 
loan certification. 
‘‘(F) INSTITUTION DISCLOSURES TO BOR-
ROWER.—Before providing a private loan cer-
tification to a private educational lender, an in-
stitution of higher education shall provide to 
the borrower notice of— 
‘‘(i) the amount of any Federal stu-
dent assistance under title IV of the High-
er Education Act of 1965 for which the 
borrower is eligible; 
‘‘(ii) the advantages of Federal stu-
dent assistance under title IV of the High-
er Education Act of 1965, including disclo-
sure of the fixed interest rates, deferments, 
flexible repayment options, loan forgiveness 
programs, and other protections; 
‘‘(iii) the right of the borrower to 
choose a private educational lender of their 
choice; 
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‘‘(iv) the impact the private education 
loan for which the institution of higher 
education is submitting a private loan cer-
tification would have on the eligibility of 
the borrower for other financial assistance 
including Federal assistance under title IV 
of the Higher Education Act of 1965; 
‘‘(v) the right of the borrower to ac-
cept or reject a private education loan 
within the 30-day period following a pri-
vate educational lender’s approval of the 
borrower’s application for a private edu-
cation loan; and 
‘‘(vi) the right of the borrower to can-
cel any private educational loan within 3 
days of the consummation of such loan.’’; 
(2) by redesignating paragraphs (9), (10), and 
(11) as paragraphs (12), (13), and (14), respec-
tively; and— 
(A) by inserting after paragraph (8) the 
following: 
‘‘(9) LOAN STATEMENTS FOR BORROWERS.— 
‘‘(A) IN GENERAL.—A private educational 
lender that consummates a private education 
loan with respect to a student attending an in-
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