Ryan Frascone Memorial Student Loan Relief Act of 2021
Bill: H.R.3092 | Sponsor: Rep. Craig, Angie (D-MN)
Policy area: Finance and Financial Sector

Summary:
Ryan Frascone Memorial Student Loan Relief Act of 2021
This bill retroactively applies certain borrower protections related to cosigners of private student loans. Specifically, all private student loan agreements must (1) prohibit creditors from declaring a default or accelerating the debt of a private student loan on the sole basis of the death or bankruptcy of a cosigner to such a loan, and (2) require loan holders to release a cosigner from any obligation upon the death of the student borrower. Under current law, these protections apply only to private student loan agreements entered into on or after November 20, 2018.
Additionally, the Department of the Treasury must establish a program to purchase and retire such private student loans from loan holders suffering financial injury as a result of this bill.

To adjust the applicability of certain amendments to the Truth in 
                  Lending Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ryan Frascone Memorial Student Loan 
Relief Act of 2021''.

SEC. 2. APPLICABILITY OF CERTAIN AMENDMENTS TO THE TRUTH IN LENDING 
              ACT.

    (a) In General.--Effective on the date of enactment of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115-
174), section 601(b) of such Act is amended to read as follows:
    ``(b) Applicability.--The amendments made by subsection (a) shall 
apply to private education loan agreements entered into before, on, or 
after the date of enactment of this Act.''.
    (b) Treasury Loan Purchase Program.--
            (1) In general.--The Secretary of the Treasury shall 
        establish a program under which the Secretary shall purchase 
        and retire outstanding private education loans--
                    (A) where the borrower on such loan is deceased;
                    (B) where there remains a cosigner on the loan;
                    (C) that were entered into before the date that is 
                180 days after the date of enactment of the Economic 
                Growth, Regulatory Relief, and Consumer Protection Act; 
                and
                    (D) only upon an application from a holder of such 
                loan pursuant to paragraph (2) that demonstrates the 
                holder has suffered financial injury as a result of the 
                amendment made by subsection (a).
            (2) Application.--The holder of a loan described under 
        paragraph (1) may apply to the Secretary of the Treasury to 
        have the Secretary purchase and retire such loan by submitting 
        an application in such form and manner as the Secretary may 
        require.
            (3) Authorization of appropriation.--There is authorized to 
        be appropriated to the Secretary of the Treasury $5,000,000 to 
        carry out this subsection.
            (4) Truth in lending act terms.--In this subsection, the 
        terms ``cosigner'' and ``private education loan'' have the 
        meaning given those terms, respectively, under section 140 of 
        the Truth in Lending Act (15 U.S.C. 1650).
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