Ryan Frascone Memorial Student Loan Relief Act of 2021

Bill: 117-hr-3092
Sponsor: full_name: Rep. Craig, Angie [D-MN-2]
Introduced: 2021-05-11
Policy area: Finance and Financial Sector
Subjects: Bankruptcy

Consumer credit

Education programs funding

Higher education

Student aid and college costs
Latest action: action_date: 2021-05-11
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2021-05-11
action_desc: Introduced in House
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: I 117th CONGRESS 1st Session H. R. 3092 IN THE HOUSE OF REPRESENTATIVES May 11, 2021 Ms. Craig introduced the following bill; which was referred to the Committee on Financial Services 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 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 ).