I 117th CONGRESS 1st Session H. R. 1023 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.

1. Short title This Act may be cited as the Justice for Student Borrowers Act . 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. 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: 4 Arbitration of Private Education Loan Disputes 401. Definitions. 402. No validity or enforceability. 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. 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 . 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.