I 
115TH CONGRESS 
1ST SESSION H. R. 3630 
To establish student loan borrowers’ rights to basic consumer protections, 
reasonable and flexible repayment options, access to earned credentials, 
and effective loan cancellation in exchange for public service, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2017 
Ms. WILSON of Florida introduced the following bill; which was referred to 
the Committee on Education and the Workforce, and in addition to the 
Committees on Ways and Means, the Judiciary, and Oversight and Gov-
ernment Reform, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To establish student loan borrowers’ rights to basic consumer 
protections, reasonable and flexible repayment options, 
access to earned credentials, and effective loan cancella-
tion in exchange for public service, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Student Loan Bor-
rowers’ Bill of Rights Act of 2017’’. 
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TITLE I—BORROWERS’ RIGHT TO 
BASIC 
CONSUMER 
PROTEC-
TIONS 
SEC. 101. DISCHARGEABILITY OF STUDENT LOANS IN 
BANKRUPTCY CASES. 
Section 523(a) of title 11 of the United States Code 
is amended— 
(1) by striking paragraph (8); and 
(2) by redesignating paragraphs (9) through 
(19) as paragraphs (8) through (18). 
SEC. 102. REINSTATEMENT OF THE 6-YEAR STATUTE OF 
LIMITATIONS FOR STUDENT LOANS. 
Subsection (a) of section 484A of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1091a(a)) is amended to 
read as follows: 
‘‘(a) STATUTE OF LIMITATIONS.—Notwithstanding 
any Federal or State statutory, regulatory, or administra-
tive limitation on the period within which debts may be 
enforced— 
‘‘(1) an institution that receives funds under 
this title may file a suit or initiate or take another 
action for collection of a refund due from a student 
on a grant made, or work assistance awarded, under 
this title, during the 6-year period beginning on the 
day after the refund first became due (exclusive of 
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the period during which the State statute of limita-
tions otherwise applicable to a suit under this para-
graph would be tolled under State law); 
‘‘(2) a guaranty agency that has an agreement 
with the Secretary under section 428(c) may file a 
suit or initiate or take another action for collection 
of the amount due from a borrower on a loan made 
under part B during the 6-year period beginning on 
the day after such guaranty agency reimburses the 
previous holder of the loan for its loss on account of 
the default of the borrower (exclusive of the period 
during which the State statute of limitations other-
wise applicable to a suit under this paragraph would 
be tolled under State law); 
‘‘(3) an institution that has an agreement with 
the Secretary pursuant to section 487 may file a suit 
or initiate or take another action for collection of the 
amount due from a borrower on a loan made under 
part D or E after the default of the borrower on 
such loan during the 6-year period beginning on the 
day after the date of the default of the borrower 
with respect to such amount (exclusive of the period 
during which the State statute of limitations other-
wise applicable to a suit under this paragraph would 
be tolled under State law); or 
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‘‘(4) the Secretary, the Attorney General, or the 
administrative head of another Federal agency, as 
the case may be, may file a suit or initiate or take 
another action for collection of a refund due from a 
student on a grant made under this title, or for the 
repayment of the amount due from a borrower on a 
loan made under this title that has been assigned to 
the Secretary under this title, during the 6-year pe-
riod beginning on the day after the refund or the 
amount first became due.’’. 
SEC. 103. PROHIBITION OF COLLECTION OF STUDENT 
LOANS 
THROUGH 
CERTAIN 
OFFSETS 
OR 
THROUGH WAGE GARNISHMENT. 
(a) PROHIBITION ON OFFSET OF SOCIAL SECURITY 
BENEFITS.—Section 3716(c)(3)(A) of title 31, United 
States Code, is amended— 
(1) in clause (i), by striking ‘‘except as provided 
in clause (ii)’’ and inserting ‘‘except as provided in 
clauses (ii) and (iii)’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(iii) Notwithstanding clause (i), any payments due 
to an individual under Federal benefits programs cited 
under clause (i) shall not be subject to offset under this 
subsection if the offset is for payments certified by the 
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Department of Education under a program administered 
by the Secretary of Education under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).’’. 
(b) PROHIBITION ON OFFSET OF TAX REFUND.— 
Section 3720A(a) of title 31, United States Code, is 
amended— 
(1) by striking ‘‘Any Federal agency’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), 
any Federal agency’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any past-due legally enforceable debt owed by 
an individual to the Department of Education under a 
program administered by the Secretary of Education 
under title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.) shall not be subject to notification 
under paragraph (1), and any refund of Federal taxes 
paid by the individual shall not be subject to reduction 
under subsection (c) for such debt.’’. 
(c) PROHIBITION ON WAGE GARNISHMENT.—Section 
3720D(a) of title 31, United States Code, is amended— 
(1) by striking ‘‘Notwithstanding’’ and insert-
ing: ‘‘(1) Except as provided in paragraph (2) and 
notwithstanding’’; and 
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(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any delinquent nontax debt owed by an indi-
vidual to the Department of Education under a program 
administered by the Secretary of Education under title IV 
of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.) shall not be subject to collection under this section 
through garnishment of disposable pay of the individual.’’. 
TITLE 
II—BORROWER’S 
RIGHT 
TO REASONABLE AND FLEXI-
BLE REPAYMENT OPTIONS 
SEC. 201. EXCLUSION FROM GROSS INCOME FOR DIS-
CHARGE OF STUDENT LOAN INDEBTEDNESS. 
(a) IN GENERAL.—Section 108(f)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘if such 
discharge’’ and all that follows and inserting a period. 
(b) STUDENT LOANS.—Section 108(f)(2) of such 
Code is amended by striking ‘‘made by—’’ and all that 
follows and inserting the following: ‘‘. Such term includes 
indebtedness used to refinance indebtedness which quali-
fies as a student loan under the preceding sentence.’’. 
(c) CONFORMING AMENDMENTS.—Section 108(f) of 
such Code is amended by striking paragraphs (3) and (4). 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of indebtedness after 
the date of the enactment of this Act. 
SEC. 202. 529 PLAN DISTRIBUTION FOR STUDENT LOAN 
PAYMENTS. 
(a) IN GENERAL.—Section 529(e)(3)(A) is amended 
by striking clause (iii) and inserting the following new 
clause: 
‘‘(iii) interest or principal paid with 
respect to a qualified education loan (as 
defined in section 221) with respect to a 
designated beneficiary.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 529(e)(3)(A) of such Code is 
amended by striking the second sentence. 
(2) Section 72(t)(7)(A) of such Code is amend-
ed by inserting ‘‘determined without regard to sub-
paragraph 
(A)(iii) 
thereof’’ 
after 
‘‘section 
529(e)(3)’’. 
(3) Section 530(b)(2)(A)(i) of such Code is 
amended by inserting ‘‘determined without regard to 
subparagraph 
(A)(iii) 
thereof’’ 
after 
‘‘section 
529(e)(3)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 203. INCLUSION OF PARENT PLUS LOANS IN REPAY-
MENT PROGRAMS. 
(a) INCOME CONTINGENT REPAYMENT PLAN.—Sec-
tion 455(d)(1)(D) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(d)(1)(D)) is amended by striking ‘‘, ex-
cept that the plan described in this subparagraph shall 
not be available to the borrower of a Federal Direct PLUS 
loan made on behalf of a dependent student;’’. 
(b) INCOME-BASED REPAYMENT.— 
(1) PART B LOANS.— 
(A) 
REPAYMENT
PLANS.—Section 
428(b)(9)(A)(v) of the Higher Education Act of 
1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended 
by striking ‘‘, except that the plan described in 
this clause shall not be available to a borrower 
for a loan under section 428B made on behalf 
of a dependent student or for a consolidation 
loan under section 428C, if the proceeds of such 
loan were used to discharge the liability of a 
loan under section 428B made on behalf of a 
dependent student’’. 
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(B) 
CONSOLIDATION
LOANS.—Section 
428C(c)(3)(C) of such Act (20 U.S.C. 1078– 
3(c)(3)(C)) is amended— 
(i) in subparagraph (A), by inserting 
‘‘and’’ at the end; 
(ii) in subparagraph (B), by striking 
‘‘and’’ at the end and inserting a period; 
and 
(iii) by striking subparagraph (C). 
(2) PART D LOANS.—Section 455(d)(1)(E) of 
such Act (20 U.S.C. 1087e(d)(1)(D)) is amended by 
striking ‘‘, except that the plan described in this 
subparagraph shall not be available to the borrower 
of a Federal Direct PLUS Loan made on behalf of 
a dependent student or a Federal Direct Consolida-
tion Loan, if the proceeds of such loan were used to 
discharge the liability on such Federal Direct PLUS 
Loan or a loan under section 428B made on behalf 
of a dependent student’’. 
(3) IBR.—Section 493C of such Act (20 U.S.C. 
1098e) is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘this section’’ and all 
that follows through ‘‘hardship’’ and in-
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(2) in subparagraph (B), by striking ‘‘(other 
than an excepted PLUS loan or an excepted consoli-
dation loan)’’. 
(d) OTHER REPAYMENT PLANS.—Any plan for the 
repayment of loans made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.), which 
is finalized by the Secretary of Education on or after the 
date of enactment of this Act, shall include the repayment 
of a loan under section 428B of the Higher Education 
Act of 1965, or a Federal Direct PLUS Loan under part 
D of title IV of such Act, that is made, insured, or guaran-
teed on behalf of a dependent student. 
SEC. 204. DETERMINATION OF ADVERSE CREDIT HISTORY. 
Section 428B(a) of the Higher Education Act of 
1965 (20 U.S.C. 1078–2(a)) is amended in paragraph 
(1)(A), by striking ‘‘regulations promulgated by the Sec-
retary’’ and inserting ‘‘section 685.200(c) of title 34, Code 
of Federal Regulations (as in effect on September 30, 
2011)’’. 
TITLE III—BORROWERS’ RIGHT 
TO A MEANINGFUL DEGREE 
SEC. 301. PROHIBITION ON SUSPENSIONS OF PROFES-
SIONAL LICENSES FOR LOAN DEFAULT. 
No evidence of an individual’s default on the repay-
ment of a loan made, insured, or guaranteed under title 
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IV of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.) may be admitted into evidence in a Federal or 
State proceeding involving the individual’s professional or 
vocational license. 
SEC. 302. PROHIBITION ON LOSS OF ACCESS TO TRAN-
SCRIPTS FOR LOAN DEFAULT. 
Section 487(a) of the Higher Education Act of 1965 
(20 U.S.C. 1094(a)) (as amended by section 301) is fur-
ther amended by adding at the end the following new para-
graph: 
‘‘(30)(A) The institution will not prohibit a stu-
dent from accessing the student’s transcripts, degree 
scrolls, or other certifications of coursework or edu-
cational attainments at the institution because the 
student is in default on the repayment of a loan 
made, insured, or guaranteed under this title. 
‘‘(B) For purposes of this paragraph, the term 
‘student’ includes former students.’’. 
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TITLE IV—RIGHT TO EFFECTIVE 
LOAN 
CANCELLATION 
FOR 
BORROWERS 
ENGAGED 
IN 
PUBLIC SERVICE CAREERS 
SEC. 401. EXTENSION OF LOAN CANCELLATION FOR BOR-
ROWERS EMPLOYED IN PUBLIC SERVICE 
JOBS FOR 5 YEARS. 
Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e) is amended by adding at the end the 
following new paragraph: 
‘‘(5) LOAN CANCELLATION AFTER 5 YEARS.— 
The Secretary shall also cancel 50 percent of the 
balance of interest and principal due on any eligible 
Federal Direct Loan not in default for borrowers 
employed in a public service job for 5 years during 
the repayment of such loans— 
‘‘(A) by applying paragraph (1)(A)— 
‘‘(i) by substituting ‘60’ for ‘120’ each 
place it appears; and 
‘‘(ii) by substituting ‘October 1, 2007’ 
for ‘October 1, 2017’; and 
‘‘(B) by applying paragraph (2), by sub-
stituting ‘50 percent of the balance’ with ‘the 
balance’.’’. 
Æ 
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