I 
114TH CONGRESS 
1ST SESSION H. R. 3634 
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 
SEPTEMBER 28, 2015 
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 Debt 
Protection Act of 2015’’. 
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TITLE I—BORROWERS’ RIGHT TO 
BASIC 
CONSUMER 
PROTEC-
TIONS 
SEC. 101. DISCHARGEABILITY OF STUDENT LOANS IN 
BANKRUPTCY CASES. 
Section 523(a) of title 11 of the United States Code 
is amended— 
(1) by striking paragraph (8); and 
(2) by redesignating paragraphs (9) through 
(19) as paragraphs (8) through (18). 
SEC. 102. REINSTATEMENT OF THE 6-YEAR STATUTE OF 
LIMITATIONS FOR STUDENT LOANS. 
Subsection (a) of section 484A of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1091a(a)) is amended to 
read as follows: 
‘‘(a) STATUTE OF LIMITATIONS.—Notwithstanding 
any Federal or State statutory, regulatory, or administra-
tive limitation on the period within which debts may be 
enforced— 
‘‘(1) an institution that receives funds under 
this title may file a suit or initiate or take another 
action for collection of a refund due from a student 
on a grant made, or work assistance awarded, under 
this title, during the 6-year period beginning on the 
day after the refund first became due (exclusive of 
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period during which the State statute of limitations 
otherwise applicable to a suit under this paragraph 
would be tolled under State law); 
‘‘(2) a guaranty agency that has an agreement 
with the Secretary under section 428(c) may file a 
suit or initiate or take another action for collection 
of the amount due from a borrower on a loan made 
under part B during the 6-year period beginning on 
the day after such guaranty agency reimburses the 
previous holder of the loan for its loss on account of 
the default of the borrower (exclusive of period dur-
ing which the State statute of limitations otherwise 
applicable to a suit under this paragraph would be 
tolled under State law); 
‘‘(3) an institution that has an agreement with 
the Secretary pursuant to section 487 may file a suit 
or initiate or take another action for collection of the 
amount due from a borrower on a loan made under 
part D or E after the default of the borrower on 
such loan during the 6-year period beginning on the 
day after the date of the default of the borrower 
with respect to such amount (exclusive of period 
during which the State statute of limitations other-
wise applicable to a suit under this paragraph would 
be tolled under State law); or 
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‘‘(4) the Secretary, the Attorney General, or the 
administrative head of another Federal agency, as 
the case may be, may file a suit or initiate or take 
another action for collection of a refund due from a 
student on a grant made under this title, or for the 
repayment of the amount due from a borrower on a 
loan made under this title that has been assigned to 
the Secretary under this title, during the 6-year pe-
riod beginning on the day after the refund or the 
amount first became due.’’. 
SEC. 103. PROHIBITION OF COLLECTION OF STUDENT 
LOANS 
THROUGH 
CERTAIN 
OFFSETS 
OR 
THROUGH WAGE GARNISHMENT. 
(a) PROHIBITION ON OFFSET OF SOCIAL SECURITY 
BENEFITS.—Section 3716(c)(3)(A) of title 31, United 
States Code, is amended— 
(1) in clause (i), by striking ‘‘except as provided 
in clause (ii)’’ and inserting ‘‘except as provided in 
clauses (ii) and (iii)’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(iii) Notwithstanding clause (i), any payments due 
to an individual under Federal benefits programs cited 
under clause (i) shall not be subject to offset under this 
subsection if the offset is for payments certified by the 
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Department of Education under a program administered 
by the Secretary of Education under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).’’. 
(b) PROHIBITION ON OFFSET OF TAX REFUND.— 
Section 3720A(a) of title 31, United States Code, is 
amended— 
(1) by striking ‘‘Any Federal agency’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), 
any Federal agency’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any past-due legally enforceable debt owed by 
an individual to the Department of Education under a 
program administered by the Secretary of Education 
under title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.) shall not be subject to notification 
under paragraph (1), and any refund of Federal taxes 
paid by the individual shall not be subject to reduction 
under subsection (c) for such debt.’’. 
(c) PROHIBITION ON WAGE GARNISHMENT.—Section 
3720D(a) of title 31, United States Code, is amended— 
(1) by striking ‘‘Notwithstanding’’ and insert-
ing: ‘‘(1) Except as provided in paragraph (2) and 
notwithstanding’’; and 
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(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any delinquent nontax debt owed by an indi-
vidual to the Department of Education under a program 
administered by the Secretary of Education under title IV 
of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.) shall not be subject to collection under this section 
through garnishment of disposable pay of the individual.’’. 
TITLE 
II—BORROWER’S 
RIGHT 
TO REASONABLE AND FLEXI-
BLE REPAYMENT OPTIONS 
SEC. 201. EXCLUSION FROM GROSS INCOME FOR DIS-
CHARGE OF STUDENT LOAN INDEBTEDNESS. 
(a) IN GENERAL.—Paragraph (1) of section 108(f) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘if such discharge’’ and all that follows and inserting 
a period. 
(b) STUDENT LOANS.—Paragraph (2) of section 
108(f) of such Code is amended by striking ‘‘made by— 
’’ and all that follows and inserting the following: ‘‘. Such 
term includes indebtedness used to refinance indebtedness 
which qualifies as a student loan under the preceding sen-
tence.’’. 
(c) CONFORMING AMENDMENTS.—Section 108(f) of 
such Code is amended by striking paragraphs (3) and (4). 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of indebtedness after 
the date of the enactment of this Act. 
SEC. 202. 529 PLAN DISTRIBUTION FOR STUDENT LOAN 
PAYMENTS. 
(a) IN GENERAL.—Subparagraph (A) of section 
529(e)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking clause (iii) and inserting the following new 
clause: 
‘‘(iii) interest or principal paid with 
respect to a qualified education loan (as 
defined in section 221) with respect to a 
designated beneficiary.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 529(e)(3)(A) of such Code is 
amended by striking the second sentence. 
(2) Section 72(t)(7)(A) of such Code is amend-
ed by inserting ‘‘determined without regard to sub-
paragraph 
(A)(iii) 
thereof’’ 
after 
‘‘section 
529(e)(3)’’. 
(3) Section 530(b)(2)(A)(i) of such Code is 
amended by inserting ‘‘determined without regard to 
subparagraph 
(A)(iii) 
thereof’’ 
after 
‘‘section 
529(e)(3)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 203. INCLUSION OF PARENT PLUS LOANS IN REPAY-
MENT PROGRAMS. 
(a) INCOME CONTINGENT REPAYMENT PLAN.—Sec-
tion 455(d)(1)(D) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(d)(1)(D)) is amended by striking ‘‘, ex-
cept that the plan described in this subparagraph shall 
not be available to the borrower of a Federal Direct PLUS 
loan made on behalf of a dependent student;’’. 
(b) INCOME-BASED REPAYMENT.— 
(1) SECTION 493C.—Section 493C of the High-
er Education Act of 1965 (20 U.S.C. 1098e) is 
amended— 
(A) in subsection (a)— 
(i) by striking ‘‘this section’’ and all 
that follows through ‘‘hardship’’ and in-
serting ‘‘In this section, the term ‘partial 
financial hardship’ ’’; and 
(ii) by striking ‘‘(other than an ex-
cepted PLUS loan or excepted consolida-
tion loan)’’; 
(B) in subsection (b)— 
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(i) in paragraph (1), by striking 
‘‘(other than an excepted PLUS loan or 
excepted consolidation loan)’’; and 
(ii) in paragraph (6)(A), by striking 
‘‘(other than an excepted PLUS loan or 
excepted consolidation loan)’’; and 
(C) in subsection (c), by striking ‘‘(other 
than an excepted PLUS loan or excepted con-
solidation loan),’’. 
(2) 
SECTION
455(d)(1)(E).—Section 
455(d)(1)(E) 
of 
such 
Act 
(20 
U.S.C. 
1087e(d)(1)(D)) is amended by striking ‘‘, except 
that the plan described in this subparagraph shall 
not be available to the borrower of a Federal Direct 
PLUS Loan made on behalf of a dependent student 
or a Federal Direct Consolidation Loan, if the pro-
ceeds of such loan were used to discharge the liabil-
ity on such Federal Direct PLUS Loan or a loan 
under section 428B made on behalf of a dependent 
student’’. 
(c) PAY AS YOU EARN.—The income-contingent re-
payment plan (based on the President’s ‘‘Pay As You 
Earn’’ repayment initiative) implemented in parts 674, 
682, and 685 of title 34, Code of Federal Regulations, 
as amended by the final regulations published by the De-
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partment of Education in the Federal Register on Novem-
ber 1, 2012 (77 Fed. Reg. 66088 et seq.), shall be avail-
able to borrowers of— 
(1) a Federal Direct PLUS loan made on be-
half of a dependent student; and 
(2) a Federal Direct Consolidation Loan, the 
proceeds of which were used to discharge the liabil-
ity on a Federal Direct PLUS Loan under part D 
of title IV of the Higher Education Act of 1965 or 
a loan under section 428B of such Act made, in-
sured, or guaranteed on behalf of a dependent stu-
dent. 
(d) LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
NATIONAL NEED.—Section 428K(a)(2) of such Act (20 
U.S.C. 1078–11(a)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘(other 
than an excepted PLUS loan or an excepted consoli-
dation loan (as such terms are defined in section 
493C(a)))’’; and 
(2) in subparagraph (B), by striking ‘‘(other 
than an excepted PLUS loan or an excepted consoli-
dation loan)’’. 
(e) 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 
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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. 
TITLE III—BORROWERS’ RIGHT 
TO A MEANINGFUL DEGREE 
SEC. 301. PROHIBITION ON SUSPENSIONS OF PROFES-
SIONAL LICENSES FOR LOAN DEFAULT. 
No evidence of an individual’s default on the repay-
ment of a loan made, insured, or guaranteed under title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.) may be admitted into evidence in a Federal or 
State proceeding involving the individual’s professional or 
vocational license. 
SEC. 302. PROHIBITION ON LOSS OF ACCESS TO TRAN-
SCRIPTS FOR LOAN DEFAULT. 
Section 487(a) of the Higher Education Act of 1965 
(20 U.S.C. 1094(a)) (as amended by section 301) is fur-
ther amended by adding at the end the following new para-
graph: 
‘‘(31)(A) The institution will not prohibit a stu-
dent from accessing the student’s transcripts, degree 
scrolls, or other certifications of coursework or edu-
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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.’’. 
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(m)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; and 
(2) by inserting after paragraph (2), the fol-
lowing: 
‘‘(3) ADDITIONAL
LOAN
CANCELLATION
FOR 
CERTAIN BORROWERS.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) after the conclusion of the em-
ployment period described in subparagraph 
(B)(ii) for an eligible borrower, cancel the 
obligation to repay 10 percent of the bal-
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ance of interest and principal due, as of 
the time of such cancellation, on the eligi-
ble Federal Direct Loans made to the bor-
rower under this part; and 
‘‘(ii) after the loan cancellation under 
clause (i), carry out such loan cancellation 
for each year in which the borrower makes 
12 monthly payments on the eligible Fed-
eral Direct Loans pursuant to any one or 
a combination of the repayment plans de-
scribed in subclauses (I) through (IV) of 
subparagraph (B)(i) and is employed in a 
public service job during the period in 
which the borrower makes each of such 
payments, except that once the borrower is 
eligible for the loan cancellation under 
paragraph (2) the Secretary shall carry out 
the loan cancellation under paragraph (2) 
in lieu of the loan cancellation under this 
clause. 
‘‘(B) ELIGIBLE BORROWER.—In this para-
graph, an eligible borrower is a borrower who— 
‘‘(i) has made 60 monthly payments 
on the eligible Federal Direct Loan after 
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October 1, 2015, pursuant to any one or a 
combination of the following— 
‘‘(I) payments under an income- 
based repayment plan under section 
493C; 
‘‘(II) payments under a standard 
repayment 
plan 
under 
subsection 
(d)(1)(A), based on a 10-year repay-
ment period; 
‘‘(III) monthly payments under a 
repayment 
plan 
under 
subsection 
(d)(1) or (g) of not less than the 
monthly amount calculated under sub-
section (d)(1)(A), based on a 10-year 
repayment period; or 
‘‘(IV) payments under an income 
contingent repayment plan under sub-
section (d)(1)(D); and 
‘‘(ii) has been employed in a public 
service job during the period in which the 
borrower makes each of the 60 payments 
described in clause (i).’’. 
Æ 
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