Title: Fair Student Loan Debt Collection Practices Act
Policy area: Finance and Financial Sector

Summary:
Fair Student Loan Debt Collection Practices Act
This bill prohibits a debt collector from collecting on federal student loan debt owed by a borrower earning under a certain income. Specifically, a federal student loan debt collector may not attempt to collect if a borrower would qualify for a zero-dollar payment under an income-driven repayment plan. Additionally, a debt collector may not attempt to collect an amount greater than the payment the borrower would owe under such a plan.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5287 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5287

   To amend the Fair Debt Collection Practices Act to prohibit debt 
 collectors from collecting on certain Federal student loan debt when 
  the borrower would not be required to make payments under an income-
             driven repayment plan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 3, 2019

Mr. Lawson of Florida introduced the following bill; which was referred 
    to the Committee on Financial Services, and in addition to the 
 Committees on the Judiciary, and 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 jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Fair Debt Collection Practices Act to prohibit debt 
 collectors from collecting on certain Federal student loan debt when 
  the borrower would not be required to make payments under an income-
             driven repayment plan, 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 ``Fair Student Loan Debt Collection 
Practices Act''.

SEC. 2. COLLECTION RESTRICTIONS WITH RESPECT TO FEDERAL STUDENT LOANS.

    (a) In General.--The Fair Debt Collection Practices Act (15 U.S.C. 
1692 et seq.) is amended--
            (1) by inserting after section 811 the following:
``Sec. 811A. Collection restrictions with respect to Federal student 
              loans
    ``(a) Prohibition on Collecting From Borrowers Below Certain Income 
Guidelines.--A debt collector may not attempt to collect a Federal 
student loan debt from a borrower during any period of time when a 
similarly situated borrower would not be required to make a payment 
under an income-driven repayment plan.
    ``(b) Limitation on Amounts Collected Based on Certain Income 
Guidelines.--During any 1-month period, a debt collector may not 
attempt to collect from a borrower an amount with respect to a Federal 
student loan debt that exceeds the amount that a similarly situated 
borrower would be required to make for such month under an income-
driven repayment plan.
    ``(c) Certification Before Accepting Payment.--A debt collector may 
not accept any payment with respect to a Federal student loan debt 
unless the debt collector first certifies to the borrower that the 
borrower is not eligible for any administrative discharge of such debt.
    ``(d) Definitions.--In this section:
            ``(1) Debt collector.--The term `debt collector'--
                    ``(A) has the meaning given the term under section 
                803; and
                    ``(B) means any other person that enters into a 
                contract with the Secretary of Education pursuant to 
                section 456 of the Higher Education Act of 1965 (20 
                U.S.C. 1087f) to collect on a loan made, insured, or 
                guaranteed under title IV of such Act (20 U.S.C. 1070 
                et seq.).
            ``(2) Federal student loan.--The term `Federal student 
        loan' means a loan made, insured, or guaranteed under title IV 
        of the Higher Education Act of 1965.
            ``(3) Federal student loan debt.--The term `Federal student 
        loan debt' means a debt with respect to a Federal student loan.
            ``(4) Income-driven repayment plan.--The term `income-
        driven repayment plans' means an income-driven repayment plan 
        described under section 493C of the Higher Education Act of 
        1965 (20 U.S.C. 1098e) made to a new borrower on or after July 
        1, 2014.
            ``(5) Similarly situated borrower.--With respect to a 
        borrower, the term `similarly situated borrower' means another 
        borrower that has the same income and family size 
        characteristics.''; and
            (2) in the table of contents for such Act, by inserting 
        after the item relating to section 811 the following:

``811A. Collection restrictions with respect to Federal student 
                            loans.''.
    (b) Debt Waiver Requirements.--Section 3711(g) of the title 31, 
United States Code, is amended by adding at the end the following:
    ``(11) The Secretary of the Treasury shall, before making a 
determination at the request of the Secretary of Education under 
paragraph (2)(B), require the Secretary of Education to establish 
regulations or procedures approved by the Secretary of the Treasury--
            ``(A) to ensure that any entity awarded a contract pursuant 
        to section 456 of the Higher Education Act of 1965 (20 U.S.C. 
        1087f) to collect payments from student loan borrowers in 
        default complies with the requirements of the Fair Debt 
        Collection Practices Act; and
            ``(B) to ensure that any use by the Secretary of Education 
        of the wage garnishment authority pursuant to section 488A of 
        the Higher Education Act of 1965 (20 U.S.C. 1095a) be limited 
        to--
                    ``(i) the collection of debts from borrowers who 
                would not otherwise be entitled to loan cancellation, 
                discharge, or forgiveness under any applicable 
                provision of the Higher Education Act of 1965; and
                    ``(ii) the collection of debts from borrowers for 
                amounts less than or equal to the payment that would be 
                required under an income-driven repayment plan for a 
                similarly situated borrower (as such terms are defined, 
                respectively, under section 811A(d) of the Fair Debt 
                Collection Practices Act).''.
    (c) Waiver Review and Evaluation.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of the Treasury 
shall--
            (1) review and evaluate any determination made at the 
        request of the Secretary of Education under section 
        3711(g)(2)(B) of title 31, United States Code; and
            (2) rescind or reissue such a determination to comply with 
        the requirements established by paragraph (11) of such section, 
        as added by subsection (b) of this Act.
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