S.Amdt. 3995

SA 3995. Mr. BROWN of Ohio submitted an amendment intended to be
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail'',
to protect the American taxpayer by ending bailouts, to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

On page 1304, between lines 5 and 6, insert the following:
(e) Study and Report on Private Education Loans and Private
Educational Lenders.--
(1) Report.--Not later than 2 years after the date of
enactment of this Act, the Director and the Secretary of
Education, in consultation with the Commissioners of the
Federal Trade Commission and the Attorney General, shall
submit a report to the Committee on Banking, Housing, and
Urban Affairs and the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on Financial
Services and the Committee on Education and Labor of the
House of Representatives on private education loans and
private educational lenders (as that term is defined in
section 140 of the Truth in Lending Act (15 U.S.C. 1650)).
(2) Content.--The report required by this subsection shall
examine, at a minimum, the following:
(A) The growth and changes of the private education loan
market in the United States.
(B) Factors influencing such growth and changes.
(C) The extent to which students and parents of students
rely on private education loans to finance postsecondary
education and the private education loan indebtedness of
borrowers.
(D) The characteristics of private education loan
borrowers, including--
(i) the types of institutions of higher education such
borrowers attend;
(ii) socioeconomic characteristics (including income and
education levels, racial characteristics, geographical
background, age, and gender);
(iii) the other forms of financing borrowers use to pay for
education;
(iv) whether borrowers exhaust their Federal loan options
before taking out a private education loan;
(v) whether such borrowers are dependent or independent
students (as determined under part F of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087kk)) or parents
of such students;
(vi) whether such borrowers are students enrolled in a
program leading to a certificate, license, or credential
other than a degree, an associate's degree, a baccalaureate
degree, or a graduate or professional degree; and
(vii) if practicable, employment and repayment behaviors.
(E) The characteristics of private educational lenders,
including whether such lenders are for-profit, nonprofit, or
institutions of higher education.
(F) The underwriting criteria used by private educational
lenders, including the use of the cohort default rate (as
such term is defined in section 435(m) of the Higher
Education Act of 1965 (20 U.S.C. 1085(m)).
(G) The terms, conditions, and pricing of private education
loans.
(H) The consumer protections available to private education
loan borrowers, including the effectiveness of existing
disclosures and requirements and borrowers' awareness and
understanding about terms and conditions of various financial
products.
(I) Whether Federal regulators and the public have access
to information--
(i) sufficient to provide them with assurances that private
education loans are provided in accord with the fair lending
laws of the United States; and
(ii) that allows public officials to determine lenders'
compliance with fair lending laws.
(J) Any statutory or legislative recommendations necessary
to improve consumer protections for private education loan
borrowers and to better enable Federal regulators and the
public to ascertain private educational lender compliance
with fair lending laws.
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