Andrew's Law

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Andrew Prior Act'' or ``Andrew's 
Law''.

SEC. 2. DISCHARGE OF PRIVATE STUDENT LOANS.

    Section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)) is 
amended by adding at the end the following:
            ``(12) Discharge of private educational loans in the event 
        of the death of the borrower.--
                    ``(A) Definitions.--As used in this paragraph--
                            ``(i) the term `cosigner'--
                                    ``(I) means any individual who is 
                                liable for the obligation of another 
                                without compensation, regardless of how 
                                designated in the contract or 
                                instrument relating to the obligation;
                                    ``(II) includes any person whose 
                                signature is requested as a condition 
                                to grant credit or to forbear on 
                                collection; and
                                    ``(III) does not include a spouse 
                                of an individual referred to in 
                                subclause (I) whose signature is needed 
                                to perfect the security interest in the 
                                loan;
                            ``(ii) the term `private educational 
                        lender' has the same meaning as in section 140;
                            ``(iii) the term `private education loan' 
                        has the same meaning as in section 140; and
                            ``(iv) the term `totally and permanently 
                        disabled' means--
                                    ``(I) with respect to a person 
                                other than a veteran, that the person 
                                is unable to engage in any substantial 
                                gainful activity because of a medically 
                                determinable physical or mental 
                                impairment that--
                                            ``(aa) can be expected to 
                                        result in death;
                                            ``(bb) has lasted for a 
                                        continuous period of not less 
                                        than 60 months; or
                                            ``(cc) can be expected to 
                                        last for a continuous period of 
                                        not less than 60 months; and
                                    ``(II) in the case of a veteran (as 
                                that term is defined in section 101 of 
                                title 38, United States Code), a 
                                determination from the Secretary of 
                                Veterans Affairs that--
                                            ``(aa) such person has a 
                                        service-connected disability or 
                                        service-connected disabilities 
                                        that are 100 percent disabling; 
                                        or
                                            ``(bb) such person is 
                                        totally disabled, based on an 
                                        Individual Unemployability 
                                        determination by the Secretary 
                                        of Veterans Affairs.
                    ``(B) Private educational loans discharged.--In the 
                event of the death of a borrower of a private 
                educational loan, or if the borrower of a private 
                educational loan is totally and permanently disabled, 
                neither the estate of the borrower nor any cosigner of 
                such private educational loan shall be obligated to 
                repay the outstanding principal or interest on the 
                loan.
                    ``(C) Limitations.--The Bureau--
                            ``(i) shall develop such safeguards as may 
                        be necessary and appropriate to prevent fraud 
                        and abuse in the discharge of liability under 
                        this subsection; and
                            ``(ii) notwithstanding any other provision 
                        of this subsection, may promulgate regulations 
                        to reinstate the obligation of loans discharged 
                        under this subsection in any case in which the 
                        Director determines necessary to protect the 
                        public interest.''.

SEC. 3. REGULATIONS.

    The Director of the Bureau of Consumer Financial Protection may 
issue such regulations as may be necessary and appropriate to carry out 
this Act.

Summary: Andrew Prior Act or Andrew's Law - Amends the Truth in Lending Act to discharge the repayment obligations of the estate of a borrower and any cosigner of a private educational loan if the borrower dies or is totally and permanently disabled. Requires the Director of the Consumer Financial Protection Bureau (CFPB) to develop necessary and appropriate safeguards to prevent fraud and abuse in the discharge of those obligations.  Authorizes the Director to promulgate regulations to reinstate those obligations in any case in which the Director determines that doing so is necessary to protect the public interest.