Title: Justice for Student Borrowers Act
Policy area: Law

Summary:
Justice for Student Borrowers Act
This bill prohibits a predispute arbitration agreement from being valid or enforceable if it requires arbitration of a dispute relating to a private education loan.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1023 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 1023

   To amend title 9 of the United States Code to prohibit predispute 
arbitration agreements that force arbitration of disputes arising from 
            private education loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 11, 2021

Ms. Scanlon (for herself, Mr. Nadler, Mr. Cicilline, Mrs. Demings, Mr. 
Raskin, Mr. Carson, Ms. Lee of California, Mr. Aguilar, Mr. Evans, Ms. 
   Brownley, Mr. Johnson of Georgia, and Ms. Jayapal) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend title 9 of the United States Code to prohibit predispute 
arbitration agreements that force arbitration of disputes arising from 
            private education loans, 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 ``Justice for Student Borrowers Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to--
            (1) prohibit private educational lenders from using 
        predispute arbitration agreements in their private education 
        loans; and
            (2) to prohibit private educational lenders from using 
        predispute joint-action waivers in their private education 
        loans.

SEC. 3. ARBITRATION OF PRIVATE EDUCATION LOAN DISPUTES.

    (a) In General.--Title 9 of the United States Code is amended by 
adding at the end the following:

      ``CHAPTER 4--ARBITRATION OF PRIVATE EDUCATION LOAN DISPUTES

``401. Definitions.
``402. No validity or enforceability.
``Sec. 401. Definitions
    ``In this chapter--
            ``(1) the term `private education loan' has the meaning 
        given that term under section 140 of the Truth in Lending Act;
            ``(2) the term `predispute arbitration agreement' means an 
        agreement to arbitrate a dispute that has not yet arisen at the 
        time of the making of the agreement; and
            ``(3) the term `predispute joint-action waiver' means an 
        agreement, whether or not part of a predispute arbitration 
        agreement, that would prohibit, or waive the right of, one of 
        the parties to the agreement to participate in a joint, class, 
        or collective action in a judicial, arbitral, administrative, 
        or other forum, concerning a dispute that has not yet arisen at 
        the time of the making of the agreement.
``Sec. 402. No validity or enforceability
    ``(a) In General.--Notwithstanding any other provision of this 
title, no predispute arbitration agreement or predispute joint-action 
waiver shall be valid or enforceable with respect to a dispute relating 
to a private education loan.
    ``(b) Applicability.--
            ``(1) In general.--An issue as to whether this chapter 
        applies with respect to a dispute shall be determined under 
        Federal law. The applicability of this chapter to an agreement 
        to arbitrate and the validity and enforceability of an 
        agreement to which this chapter applies shall be determined by 
        a court, rather than an arbitrator, irrespective of whether the 
        party resisting arbitration challenges the arbitration 
        agreement specifically or in conjunction with other terms of 
        the contract containing such agreement, and irrespective of 
        whether the agreement purports to delegate such determinations 
        to an arbitrator.
            ``(2) Collective bargaining agreements.--Nothing in this 
        chapter shall apply to any arbitration provision in a contract 
        between an employer and a labor organization or between labor 
        organizations, except that no such arbitration provision shall 
        have the effect of waiving the right of a worker to seek 
        judicial enforcement of a right arising under a provision of 
        the Constitution of the United States, a State constitution, or 
        a Federal or State statute, or public policy arising 
        therefrom.''.
    (b) Technical and Conforming Amendments.--
            (1) In general.--Title 9 of the United States Code is 
        amended--
                    (A) in section 1 by striking ``of seamen,'' and all 
                that follows through ``interstate commerce,'' and 
                inserting in its place ``of individuals, regardless of 
                whether such individuals are designated as employees or 
                independent contractors for other purposes'';
                    (B) in section 2 by inserting ``or as otherwise 
                provided in chapter 4'' before the period at the end;
                    (C) in section 208--
                            (i) in the section heading by striking 
                        ``chapter 1; residual application'' and 
                        inserting ``application''; and
                            (ii) by adding at the end the following: 
                        ``This chapter applies to the extent that this 
                        chapter is not in conflict with chapter 4.''; 
                        and
                    (D) in section 307--
                            (i) in the section heading by striking 
                        ``chapter 1; residual application'' and 
                        inserting ``application''; and
                            (ii) by adding at the end the following: 
                        ``This chapter applies to the extent that this 
                        chapter is not in conflict with chapter 4.''.
            (2) Table of sections.--
                    (A) Chapter 2.--The table of sections of chapter 2 
                of title 9, United States Code, is amended by striking 
                the item relating to section 208 and inserting the 
                following:

``208. Application.''.
                    (B) Chapter 3.--The table of sections of chapter 3 
                of title 9, United States Code, is amended by striking 
                the item relating to section 307 and inserting the 
                following:

``307. Application.''.
            (3) Table of chapters.--The table of chapters of title 9, 
        United States Code, is amended by adding at the end the 
        following:

``4. Arbitration of private education loan disputes''.

SEC. 4. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
the date of enactment of this Act and shall apply with respect to any 
dispute or claim that arises or accrues on or after such date.
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