Ryan Frascone Memorial Student Loan Relief Act of 2021

Bill: 117-s-2544
Sponsor: full_name: Sen. Smith, Tina [D-MN]
Introduced: 2021-07-29
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-07-29
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-07-29
action_desc: Introduced in Senate
text: <p><b>Ryan Frascone Memorial Student Loan Relief Act of 2021</b></p> <p>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.</p> <p>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. </p>

tv_txt: II 117th CONGRESS 1st Session S. 2544 IN THE SENATE OF THE UNITED STATES July 29, 2021 Ms. Smith (for herself and Mr. Van Hollen ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To adjust the applicability of certain amendments to the Truth in Lending Act, and for other purposes.

1. Short title This Act may be cited as the Ryan Frascone Memorial Student Loan Relief Act of 2021 . 2. Applicability of certain amendments to the Truth in Lending Act (a) In general (1) Applicability Section 601(b) of the Economic Growth, Regulatory Relief, and Consumer Protection Act ( 15 U.S.C. 1650 note) 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. . (2) Effective date The amendment made by paragraph (1) shall take effect as if included in section 601 of the Economic Growth, Regulatory Relief, and Consumer Protection Act ( Public Law 115–174 ). (b) Treasury loan purchase program (1) Definitions In this subsection, the terms cosigner and private education loan have the meanings given those terms, respectively, in section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 ). (2) Establishment of purchase program 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 ( Public Law 115–174 ); and (D) only upon an application from a holder of such loan pursuant to paragraph (3) that demonstrates the holder has suffered financial injury as a result of the amendment made by subsection (a). (3) Application The holder of a loan described under paragraph (2) may apply to the Secretary of the Treasury to have the Secretary purchase and retire such loan by submitting an application in the form and manner that the Secretary may require. (4) Authorization of appropriations There is authorized to be appropriated to the Secretary of the Treasury $5,000,000 to carry out this subsection.