S.Amdt. 2179

SA 2179. Mr. DURBIN (for himself, Mr. Reed, Ms. Warren, Mrs. Murray,
Mr. Brown, Mr. Blumenthal, Ms. Baldwin, Ms. Duckworth, Mr. Whitehouse,
Ms. Hassan, Mr. Van Hollen, and Mr. Markey) submitted an amendment
intended to be proposed to amendment SA 2151 proposed by Mr. Crapo (for
himself, Mr. Donnelly, Ms. Heitkamp, Mr. Tester, and Mr. Warner) to the
bill S. 2155, to promote economic growth, provide tailored regulatory
relief, and enhance consumer protections, and for other purposes; which
was ordered to lie on the table; as follows:

Beginning on page 188, strike line 5 and all that follows
through line 20, on page 190, and insert the following:
(a) In General.--Section 128(e) of the Truth in Lending Act
(15 U.S.C. 1638(e)) is amended by adding at the end the
following:
``(12) Rehabilitation of private education loans.--If a
borrower of a private education loan successfully and
voluntarily makes 9 payments within 20 days of the due date
during 10 consecutive months of amounts owed on the private
education loan, or otherwise brings the private education
loan current after the loan is charged-off, the loan shall be
considered rehabilitated, and the lender or servicer shall
request that any consumer reporting agency to which the
charge-off was reported remove the delinquency that led to
the charge-off and the charge-off from the borrower's credit
history.''.

On page 191, strike lines 1 through 5 and insert the
following:
(A) the implementation of paragraph (12) of section 128(e)
of the Truth in Lending Act (15 U.S.C. 1638(e)) (referred to
in this paragraph as ``the provision''), as added by
subsection (a);

At the end, add the following:

TITLE VII--STUDENT PROTECTIONS

SEC. 701. STUDENT LOAN BORROWER BILL OF RIGHTS.

(a) Short Title.--This section may be cited as the
``Student Loan Borrower Bill of Rights''.
(b) Truth in Lending Act Amendments.--The Truth in Lending
Act (15 U.S.C. 1601 et seq.), as amended by this Act, is
further amended--
(1) in section 128--
(A) in subsection (e)--
(i) in the subsection heading, by striking ``Private'';
(ii) in paragraph (1)(O), by striking ``paragraph (6)'' and
inserting ``paragraph (9)'';
(iii) in paragraph (2)(L), by striking ``paragraph (6)''
and inserting ``paragraph (9)'';
(iv) in paragraph (4)(C), by striking ``paragraph (7)'' and
inserting ``paragraph (10)'';
(v) by redesignating paragraphs (5) through (12) as
paragraphs (8) through (15), respectively;
(vi) by inserting after paragraph (4) the following:
``(5) Disclosures before first fully amortized payment.--
Not fewer than 30 days and not more than 150 days before the
first fully amortized payment on a postsecondary education
loan is due from the borrower, the postsecondary educational
lender shall disclose to the borrower, clearly and
conspicuously--
``(A) the information described in--
``(i) paragraph (2)(A) (adjusted, as necessary, for the
rate of interest in effect on the date the first fully
amortized payment on a postsecondary education loan is due);
``(ii) subparagraphs (B) through (G) of paragraph (2);
``(iii) paragraph (2)(H) (adjusted, as necessary, for the
rate of interest in effect on the date the first fully
amortized payment on a postsecondary education loan is due);
``(iv) paragraph (2)(K); and
``(v) subparagraphs (O) and (P) of paragraph (2);
``(B) the scheduled date upon which the first fully
amortized payment is due;
``(C) the name of the lender and servicer, and the address
to which communications and payments should be sent including
a telephone number and website where the borrower may obtain
additional information;
``(D) a description of alternative repayment plans,
including loan consolidation or refinancing, and
servicemember or veteran benefits under the Servicemembers
Civil Relief Act (50 U.S.C. App. 501 et seq.) or other
Federal or State law related to postsecondary education
loans; and
``(E) a statement that a Servicemember and Veterans Liaison
designated under paragraph (16)(I) is available to answer
inquiries about servicemember and veteran benefits related to
postsecondary education loans, including the toll-free
telephone number to contact the Liaison pursuant to paragraph
(16)(I).
``(6) Disclosures when borrower is 30 days delinquent.--Not
fewer than 5 days after a borrower becomes 30 days delinquent
on a postsecondary education loan, the postsecondary
educational lender shall disclose to the borrower, clearly
and conspicuously--
``(A) the date on which the loan will be charged-off (as
defined in paragraph (16)(A)) or assigned to collections,
including the consequences of such charge-off or assignment
to collections, if no payment is made;
``(B) the minimum payment that the borrower must make to
avoid the loan being charged off (as defined in paragraph
(16)(A)) or assigned to collection, and the minimum payment
that the borrower must make to bring the loan current;
``(C) a statement informing the borrower that a payment of
less than the minimum payment described in subparagraph (B)
could result in the loan being charged off (as defined in
paragraph (16)(A)) or assigned to collection; and

[[Page S1595]]

``(D) a statement that a Servicemember and Veterans Liaison
designated under paragraph (16)(I) is available to answer
inquiries about servicemember and veteran benefits related to
postsecondary education loans, including the toll-free
telephone number to contact the Liaison pursuant to paragraph
(16)(I).
``(7) Disclosures when borrower is having difficulty making
payment or is 60 days delinquent.--
``(A) In general.--Not fewer than 5 days after a borrower
notifies a postsecondary educational lender that the borrower
is having difficulty making payment or a borrower becomes 60
days delinquent on a postsecondary education loan, the
postsecondary educational lender shall--
``(i) complete a full review of the borrower's
postsecondary education loan and make a reasonable effort to
obtain the information necessary to determine--

``(I) if the borrower is eligible for an alternative
repayment plan, including loan consolidation or refinancing;
and
``(II) if the borrower is eligible for servicemember or
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) or other Federal or State law
related to postsecondary education loans;

``(ii) provide the borrower, in writing, in simple and
understandable terms, information about alternative repayment
plans and benefits for which the borrower is eligible,
including all terms, conditions, and fees or costs associated
with such repayment plan, pursuant to paragraph (8)(D);
``(iii) allow the borrower not less than 30 days to apply
for an alternative repayment plan or benefits, if eligible;
and
``(iv) notify the borrower that a Servicemember and
Veterans Liaison designated under paragraph (16)(I) is
available to answer inquiries about servicemember and veteran
benefits related to postsecondary education loans, including
the toll-free telephone number to contact the Liaison
pursuant to paragraph (16)(I).
``(B) Forbearance or deferment.--If a borrower notifies the
postsecondary educational lender that a long-term alternative
repayment plan is not appropriate, the postsecondary
educational lender may comply with this paragraph by
providing the borrower, in writing, in simple and
understandable terms, information about short-term options to
address an anticipated short-term difficulty in making
payments, such as forbearance or deferment options, including
all terms, conditions, and fees or costs associated with such
options pursuant to paragraph (8)(D).
``(C) Notification process.--
``(i) In general.--Each postsecondary educational lender
shall establish a process, in accordance subparagraph (A),
for a borrower to notify the lender that--

``(I) the borrower is having difficulty making payments on
a postsecondary education loan; and
``(II) a long-term alternative repayment plan is not
needed.

``(ii) Consumer financial protection bureau requirements.--
The Director of the Bureau of Consumer Financial Protection,
in consultation with the Secretary of Education, shall
promulgate rules establishing minimum standards for
postsecondary educational lenders in carrying out the
requirements of this paragraph and a model form for borrowers
to notify postsecondary educational lenders of the
information under this paragraph.'';
(vii) in paragraph (8), as redesignated by clause (v), by
adding at the end the following:
``(D) Model disclosure form for alternative repayment
plans, forbearance, and deferment options.--Not later than 2
years after the date of enactment of the Student Loan
Borrower Bill of Rights, the Director of the Bureau of
Consumer Financial Protection, in consultation with the
Secretary of Education, shall develop and issue model forms
to allow borrowers to compare alternative repayment plans,
forbearance, and deferment options with the borrower's
existing repayment plan with respect to a postsecondary
education loan. Such forms shall include the following:
``(i) The total amount to be paid over the life of the
loan.
``(ii) The total amount in interest to be paid over the
life of the loan.
``(iii) The monthly payment amount.
``(iv) The expected pay-off date.
``(v) Related fees and costs.
``(vi) Eligibility requirements, and how the borrower can
apply for the alternative repayment plan, forbearance, or
deferment option.
``(vii) Any relevant consequences due to action or
inaction, such as default, including any actions that would
result in the loss of eligibility for alternative repayment
plans, forbearance, or deferment options.'';
(viii) in paragraph (11), as redesignated by clause (v), by
striking ``paragraph (7)'' and inserting ``paragraph (10)'';
(ix) by striking paragraph (13), as redesignated by clause
(v), and inserting the following:
``(13) Definitions.--In this subsection--
``(A) the terms `covered educational institution', `private
educational lender', and `private education loan' have the
same meanings as in section 140; and
``(B) the term `postsecondary education loan' means
``(i) a private education loan; or
``(ii) a loan made, insured, or guaranteed under part B, D,
or E of title IV of the Higher Education Act of 1965 (20
U.S.C. 1071 et seq., 1087a et seq., and 1087aa et seq.).'';
(x) in paragraph (14), as redesignated by clause (v), by
striking ``paragraph (5)'' and inserting ``paragraph (8)'';
and
(xi) by adding at the end the following:
``(16) Student loan borrower bill of rights.--
``(A) Definitions.--In this paragraph:
``(i) Borrower.--The term `borrower' means the person to
whom a postsecondary education loan is extended.
``(ii) Charge off.--The term `charge off' means charge to
profit and loss, or subject to any similar action.
``(iii) Qualified written request.--

``(I) In general.--The term `qualified written request'
means a written correspondence of a borrower (other than
notice on a payment medium supplied by the student loan
servicer) transmitted by mail, facsimile, or electronically
through an email address or website designated by the student
loan servicer to receive communications from borrowers that--

``(aa) includes, or otherwise enables the student loan
servicer to identify, the name and account of the borrower;
and
``(bb) includes, to the extent applicable--

``(AA) sufficient detail regarding the information sought
by the borrower; or
``(BB) a statement of the reasons for the belief of the
borrower that there is an error regarding the account of the
borrower.
``(II) Correspondence delivered to other addresses.--

``(aa) In general.--A written correspondence of a borrower
is a qualified written request if the written correspondence
is transmitted to and received by a student loan servicer at
a mailing address, facsimile number, email address, or
website address other than the address or number designated
by that student loan servicer to receive communications from
borrowers but the written correspondence meets the
requirements under items (aa) and (bb) of subclause (I).
``(bb) Duty to transfer.--A student loan servicer shall,
within a reasonable period of time, transfer a written
correspondence of a borrower received by the student loan
servicer at a mailing address, facsimile number, email
address, or website address other than the address or number
designated by that student loan servicer to receive
communications from borrowers to the correct address or
appropriate office or other unit of the student loan
servicer.
``(cc) Date of receipt.--A written correspondence of a
borrower transferred in accordance with item (bb) shall be
deemed to be received by the student loan servicer on the
date on which the written correspondence is transferred to
the correct address or appropriate office or other unit of
the student loan servicer.
``(iv) Servicer.--The term `servicer' means the person
responsible for the servicing of a postsecondary education
loan, including any agent of such person or the person who
makes, owns, or holds a loan if such person also services the
loan.
``(v) Servicing.--The term `servicing' means--

``(I) receiving any scheduled periodic payments from a
borrower pursuant to the terms of a postsecondary education
loan;
``(II) making the payments of principal and interest and
such other payments with respect to the amounts received from
the borrower, as may be required pursuant to the terms of the
loan; and
``(III) performing other administrative services with
respect to the loan.

``(B) Sale, transfer, or assignment.--If the sale, other
transfer, assignment, or transfer of servicing obligations of
a postsecondary education loan results in a change in the
identity of the party to whom the borrower must send
subsequent payments or direct any communications concerning
the loan--
``(i) the transferor shall--

``(I) notify the borrower, in writing, in simple and
understandable terms, not fewer than 45 days before
transferring a legally enforceable right to receive payment
from the borrower on such loan, of--

``(aa) the sale or other transfer, assignment, or transfer
of servicing obligations;
``(bb) the identity of the transferee;
``(cc) the name and address of the party to whom subsequent
payments or communications must be sent;
``(dd) the telephone numbers and websites of both the
transferor and the transferee;
``(ee) the effective date of the sale, transfer, or
assignment;
``(ff) the date on which the transferor will stop accepting
payment; and
``(gg) the date on which the transferee will begin
accepting payment; and

``(II) forward any payment from a borrower with respect to
such postsecondary education loan to the transferee,
immediately upon receiving such payment, during the 60-day
period beginning on the date on which the transferor stops
accepting payment of such postsecondary education loan; and

``(ii) the transferee shall--

``(I) notify the borrower, in writing, in simple and
understandable terms, not fewer than 45 days before acquiring
a legally enforceable right to receive payment from the
borrower on such loan, of--

``(aa) the sale or other transfer, assignment, or transfer
of servicing obligations;
``(bb) the identity of the transferor:
``(cc) the name and address of the party to whom subsequent
payments or communications must be sent;

[[Page S1596]]

``(dd) the telephone numbers and websites of both the
transferor and the transferee;
``(ee) the effective date of the sale, transfer,
assignment, or transfer of servicing obligations;
``(ff) the date on which the transferor will stop accepting
payment; and
``(gg) the date on which the transferee will begin
accepting payment;

``(II) accept as on-time and may not impose any late fee or
finance charge for any payment from a borrower with respect
to such postsecondary education loan that is forwarded from
the transferor during the 60-day period beginning on the date
on which the transferor stops accepting payment, if the
transferor receives such payment on or before the applicable
due date, including any grace period;
``(III) provide borrowers a simple, online process for
transferring existing electronic fund transfer authority; and
``(IV) honor any promotion or benefit offered to the
borrower or advertised by the previous owner or transferor of
such postsecondary education loan.

``(C) Material change in mailing address or procedure for
handling payments.--If a servicer makes a change in the
mailing address, office, or procedures for handling payments
with respect to any postsecondary education loan, and such
change causes a delay in the crediting of the account of the
borrower made during the 60-day period following the date on
which such change took effect, the servicer may not impose
any late fee or finance charge for a late payment on such
postsecondary education loan.
``(D) Interest rate and term changes for certain post-
secondary education loans.--
``(i) Notification requirements.--

``(I) In general.--Except as provided in clause (iii), a
student loan servicer shall provide written notice to a
borrower of any material change in the terms of the
postsecondary education loan, including an increase in the
interest rate, not later than 45 days before the effective
date of the change or increase.
``(II) Material changes in terms.--The Bureau shall, by
regulation, establish guidelines for determining which
changes in terms are material under subclause (I).

``(ii) Limits on interest rate and fee increases applicable
to outstanding balance.--Except as provided in clause (iii),
a loan holder or student loan servicer may not increase the
interest rate or other fee applicable to an outstanding
balance on a postsecondary education loan.
``(iii) Exceptions.--The requirements under clauses (i) and
(ii) shall not apply to--

``(I) an increase in any applicable variable interest rate
incorporated in the terms of a postsecondary education loan
that provides for changes in the interest rate according to
operation of an index that is not under the control of the
loan holder or student loan servicer and is published for
viewing by the general public;
``(II) an increase in interest rate due to the completion
of a workout or temporary hardship arrangement by the
borrower or the failure of the borrower to comply with the
terms of a workout or temporary hardship arrangement if--

``(aa) the interest rate applicable to a category of
transactions following any such increase does not exceed the
rate or fee that applied to that category of transactions
prior to commencement of the arrangement; and
``(bb) the loan holder or student loan servicer has
provided the borrower, prior to the commencement of such
arrangement, with clear and conspicuous disclosure of the
terms of the arrangement (including any increases due to such
completion or failure); and

``(III) an increase in interest rate due to a provision
included within the terms of a postsecondary education loan
that provides for a lower interest rate based on the
borrower's agreement to a prearranged plan that authorizes
recurring electronic funds transfers if--

``(aa) the borrower withdraws the borrower's authorization
of the prearranged recurring electronic funds transfer plan;
and
``(bb) after withdrawal of the borrower's authorization and
prior to increasing the interest rate, the loan holder or
student loan servicer has provided the borrower with clear
and conspicuous disclosure of the impending change in
borrower's interest rate and a reasonable opportunity to
reauthorize the prearranged electronic funds transfers plan.
``(E) Application of payments.--
``(i) In general.--Unless otherwise directed by the
borrower of a postsecondary education loan, upon receipt of a
payment, the servicer shall apply amounts first to the
interest and fees owed on the payment due date, and then to
the principal balance of the postsecondary education loan
bearing the highest annual percentage rate, and then to each
successive interest and fees and then principal balance
bearing the next highest annual percentage rate, until the
payment is exhausted. A borrower may instruct or expressly
authorize the servicer to apply payments in a different
manner.
``(ii) Application of excess amounts.--Unless otherwise
directed by the borrower of a postsecondary education loan,
upon receipt of a payment, the servicer shall apply amounts
in excess of the minimum payment amount first to the interest
and fees owed on the payment due date, and then to the
principal balance of the postsecondary education loan balance
bearing the highest annual percentage rate, and then to each
successive interest and fees and principal balance bearing
the next highest annual percentage rate, until the payment is
exhausted. A borrower may instruct or expressly authorize the
servicer to apply such excess payments in a different manner.
A borrower may also voluntarily increase the periodic payment
amount, including by increasing their recurring electronic
payment, with the right to return to their original
amortization schedule at any time. Servicers shall provide a
simple, online method to allow borrowers to make voluntary
one-time additional payments, voluntarily increase the amount
of their periodic payment, and return to their original
amortization schedule.
``(iii) Apply payment on date received.--Unless otherwise
directed by the borrower of a postsecondary education loan, a
servicer shall apply payments to a borrower's account on the
date the payment is received.
``(iv) Promulgation of rules.--The Director of the Bureau
of Consumer Financial Protection, in consultation with the
Secretary of Education, may promulgate rules for the
application of postsecondary education loan payments that--

``(I) implements the requirements in this section;
``(II) minimizes the amount of fees and interest incurred
by the borrower and the total loan amount paid by the
borrower;
``(III) minimizes delinquencies, assignments to collection,
and charge-offs;
``(IV) requires servicers to apply payments on the date
received; and
``(V) allows the borrower to instruct the servicer to apply
payments in a manner preferred by the borrower, including
excess payments.

``(v) Method that best benefits borrower.--In promulgating
the rules under clause (iv), the Director of the Bureau of
Consumer Financial Protection shall choose the application
method that best benefits the borrower and is compatible with
existing repayment options.
``(F) Payments and fees.--
``(i) Prohibition on recommending default.--A loan holder
or student loan servicer may not recommend or encourage
default or delinquency on an existing postsecondary education
loan prior to and in connection with the process of
qualifying for or enrolling in an alternative repayment
arrangement, including the origination of a new postsecondary
education loan that refinances all or any portion of such
existing loan or debt.
``(ii) Late fees.--

``(I) In general.--A late fee may not be charged to a
borrower for a postsecondary education loan under any of the
following circumstances, either individually or in
combination:

``(aa) On a per-loan basis when a borrower has multiple
postsecondary education loans in a billing group.
``(bb) In an amount greater than 4 percent of the amount of
the payment past due.
``(cc) Before the end of the 15-day period beginning on the
date the payment is due.
``(dd) More than once with respect to a single late
payment.
``(ee) The borrower fails to make a singular, non-
successive regularly-scheduled payment on the postsecondary
education loan.
``(ff) The student loan servicer has failed to adopt
reasonable procedures designed to ensure that each billing
statement required under subparagraph (K) is mailed or
delivered to the consumer not later than 21 days before the
payment due date.
``(iii) Coordination with subsequent late fees.--No late
fee may be charged to a borrower for a postsecondary
education loan relating to an insufficient payment if the
payment is made on or before the due date of the payment, or
within any applicable grace period for the payment, if the
insufficiency is attributable only to a late fee relating to
an earlier payment, and the payment is otherwise a full
payment for the applicable period.
``(iv) Payments at local branches.--If the loan holder, in
the case of a postsecondary education loan account referred
to in subparagraph (A), is a financial institution that
maintains a branch or office at which payments on any such
account are accepted from the borrower in person, the date on
which the borrower makes a payment on the account at such
branch or office shall be considered to be the date on which
the payment is made for purposes of determining whether a
late fee may be imposed due to the failure of the borrower to
make payment on or before the due date for such payment.
``(G) Borrower inquiries.--
``(i) Duty of student loan servicers to respond to borrower
inquiries.--

``(I) Notice of receipt of request.--If a borrower of a
postsecondary education loan submits a qualified written
request to the student loan servicer for information relating
to the student loan servicing of the postsecondary education
loan, the student loan servicer shall provide a written
response acknowledging receipt of the qualified written
request within 5 business days unless any action requested by
the borrower is taken within such period.
``(II) Action with respect to inquiry.--Not later than 30
business days after the receipt from a borrower of a
qualified written request under subclause (I) and, if
applicable, before taking any action with respect to the
qualified written request of the borrower, the student loan
servicer shall--

[[Page S1597]]

``(aa) make appropriate corrections in the account of the
borrower, including the crediting of any late fees, and
transmit to the borrower a written notification of such
correction (which shall include the name and toll-free or
collect-call telephone number of a representative of the
student loan servicer who can provide assistance to the
borrower);
``(bb) after conducting an investigation, provide the
borrower with a written explanation or clarification that
includes--
``(AA) to the extent applicable, a statement of the reasons
for which the student loan servicer believes the account of
the borrower is correct as determined by the student loan
servicer; and
``(BB) the name and toll-free or collect-call telephone
number of an individual employed by, or the office or
department of, the student loan servicer who can provide
assistance to the borrower; or
``(cc) after conducting an investigation, provide the
borrower with a written explanation or clarification that
includes--
``(AA) information requested by the borrower or explanation
of why the information requested is unavailable or cannot be
obtained by the student loan servicer; and
``(BB) the name and toll-free or collect-call telephone
number of an individual employed by, or the office or
department of, the student loan servicer who can provide
assistance to the borrower.

``(III) Limited extension of response time.--

``(aa) In general.--There may be 1 extension of the 30-day
period described in subclause (II) of not more than 15 days
if, before the end of such 30-day period, the student loan
servicer notifies the borrower of the extension and the
reasons for the delay in responding.
``(bb) Reports to bureau.--Each student loan servicer
shall, on an annual basis, report to the Bureau the aggregate
number of extensions sought by the student loan servicer
under item (aa).
``(ii) Protection of credit information.--During the 60-day
period beginning on the date on which a student loan servicer
receives a qualified written request from a borrower relating
to a dispute regarding payments by the borrower, a student
loan servicer may not provide negative credit information to
any consumer reporting agency (as defined in section 603 of
the Fair Credit Reporting Act (15 U.S.C. 1681a)) relating to
the subject of the qualified written request or to such
period, including any information relating to a late payment
or payment owed by the borrower on the borrower's
postsecondary education loan.
``(H) Single point of contact for certain borrowers.--A
student loan servicer shall designate an office or other unit
of the student loan servicer to act as a point of contact
regarding postsecondary education loans for borrowers
considered to be at risk of default, including--
``(i) any borrower who requests information related to
options to reduce or suspend his or her monthly payment, or
otherwise indicates that he or she is experiencing or is
about to experience financial hardship or distress;
``(ii) any borrower who becomes 60 calendar days delinquent
on any loan;
``(iii) any borrower who has not completed the program of
study for which the borrower received the loan;
``(iv) any borrower who is enrolled in discretionary
forbearance for more than 9 months of the previous 12 months;
``(v) any borrower who has rehabilitated or consolidated
one or more student loans out of default within the prior 12
months;
``(vi) a borrower under a private education loan who is
seeking to modify the terms of the repayment of the
postsecondary education loan because of hardship; and
``(vii) any borrower or segment of borrowers determined by
the Director of the Bureau to be at risk of default.
``(I) Servicemembers, veterans, and postsecondary education
loans.--
``(i) Servicemember and veterans liaison.--Each servicer
shall designate an employee to act as the servicemember and
veterans liaison who is responsible for answering inquiries
from servicemembers and veterans, and is specially trained on
servicemember and veteran benefits under the Servicemembers
Civil Relief Act (50 U.S.C. App. 501 et seq.) and other
Federal or State laws related to postsecondary education
loans.
``(ii) Toll-free telephone number.--Each servicer shall
maintain a toll-free telephone number that shall--

``(I) connect directly to the servicemember and veterans
liaison designated under clause (i); and
``(II) be made available on the primary internet website of
the servicer and on monthly billing statements.

``(iii) Prohibition on charge offs and default.--A lender
or servicer may not charge off or report a postsecondary
education loan as delinquent, assigned to collection
(internally or by referral to a third party), in default, or
charged-off to a credit reporting agency if the borrower is
on active duty in the Armed Forces (as defined in section
101(d)(1) of title 10, United States Code) serving in a
combat zone (as designated by the President under section
112(c) of the Internal Revenue Code of 1986).
``(iv) Additional liaisons.--The Secretary shall determine
additional entities with whom borrowers interact, including
guaranty agencies, that shall designate an employee to act as
the servicemember and veterans liaison who is responsible for
answering inquiries from servicemembers and veterans and is
specially trained on servicemembers and veteran benefits and
option under the Servicemembers Civil Relief Act (50 U.S.C.
App. 501 et seq.).
``(J) Borrower's loan history.--
``(i) In general.--A servicer shall make available through
a secure website, or in writing upon request, the loan
history of each borrower for each postsecondary education
loan, separately designating--

``(I) payment history;
``(II) loan history, including any forbearances, deferrals,
delinquencies, assignment to collection, and charge offs;
``(III) annual percentage rate history;
``(IV) key loan terms, including application of payments to
interest, principal, and fees, origination date, principal,
capitalized interest, annual percentage rate, including any
cap, loan term, and any contractual incentives; and
``(V) balance due to pay off the outstanding balance.

``(ii) Original documentation.--A servicer shall make
available to the borrower, if requested, at no charge, copies
of the original loan documents and the promissory note for
each postsecondary education loan.
``(iii) Prompt delivery.--A loan holder or a student loan
servicer that has received a request by a borrower or a
person authorized by a borrower for the information described
in clause (i) shall provide such information to the borrower
or person authorized by the borrower not later than 5
business days after receiving such request.
``(K) Additional servicing standards.--
``(i) Statement required with each billing cycle.--A
student loan servicer for each borrower's account that is
being serviced by that student loan servicer and that
includes a postsecondary education loan shall transmit to the
borrower, for each billing cycle at the end of which there is
an outstanding balance in that account, a statement that
includes--

``(I) the outstanding balance in the account at the
beginning of the billing cycle;
``(II) the total amount credited to the account during the
billing cycle;
``(III) the amount of any fee added to the account during
the billing cycle, itemized to show the amounts, if any, due
to the application of an increased interest rate, and the
amount, if any, imposed as a minimum or fixed charge;
``(IV) the balance on which the fee described in subclause
(III) was computed and a statement of how the balance was
determined;
``(V) whether the balance described in subclause (IV) was
determined without first deducting all payments and other
credits during the billing cycle, and the amount of any such
payments and credits;
``(VI) the outstanding balance in the account at the end of
the billing cycle;
``(VII) the date by which, or the period within which,
payment must be made to avoid late fees, if any;
``(VIII) the address of the student loan servicer to which
the borrower may direct billing inquiries;
``(IX) the amount of any payments or other credits during
the billing cycle that was applied to pay down principal, and
the amount applied to interest;
``(X) in the case of a billing group, the allocation of any
payments or other credits during the billing cycle to each of
the postsecondary education loans in the billing group;
``(XI) information on how to file a complaint with the
Bureau and with the ombudsman designated pursuant to section
1035 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5535); and
``(XII) any other information determined by the Bureau,
which may include information in the Bureau's Student Loan
Payback Playbook.

``(ii) Disclosure of payment deadlines.--In the case of a
postsecondary education loan account under which a late fee
or charge may be imposed due to the failure of the borrower
to make payment on or before the due date for such payment,
the billing statement required under clause (i) with respect
to the account shall include, in a conspicuous location on
the billing statement, the date on which the payment is due
or, if different, the date on which a late fee will be
charged, together with the amount of the late fee to be
imposed if payment is made after that date.
``(L) Arbitration.--
``(i) Waiver of rights and remedies.--Any rights and
remedies available to borrowers against servicers may not be
waived by any agreement, policy, or form, including by a
predispute arbitration agreement.
``(ii) Predispute arbitration agreements.--No predispute
arbitration agreement shall be valid or enforceable by a
servicer, including as a third-party beneficiary or by
estoppel, if the agreement requires arbitration of a dispute
with respect to a postsecondary education loan. This clause
applies to predispute arbitration agreements entered into
before the date of enactment of the Student Loan Borrower
Bill of Rights, as well as on and after such date of
enactment, if the violation that is the subject of the
dispute occurred on or after such date of enactment.
``(M) Enforcement.--The provisions of this paragraph shall
be enforced by the agencies specified in subsections (a)
through (d) of section 108, in the manner set forth in that

[[Page S1598]]

section or under any other applicable authorities available
to such agencies by law, and by State Attorneys General.
``(N) Preemption.--Nothing in this paragraph may be
construed to preempt any provision of State law regarding
postsecondary education loans where the State law provides
stronger consumer protections.
``(O) Civil liability.--A servicer that fails to comply
with any requirement imposed under this paragraph shall be
deemed a creditor that has failed to comply with a
requirement under this chapter for purposes of liability
under section 130 and such servicer shall be subject to the
liability provisions under such section, including the
provisions under paragraphs (1), (2)(A)(i), (2)(B), and (3)
of section 130(a).
``(P) Eligibility for discharge.--The Director of the
Bureau of Consumer Financial Protection, in consultation with
the Secretary of Education, shall promulgate rules requiring
lenders and servicers of loans described in paragraph
(13)(B)(ii) to--
``(i) identify and contact borrowers who may be eligible
for student loan discharge by the Secretary;
``(ii) provide the borrower, in writing, in simple and
understandable terms, information about obtaining such
discharge; and
``(iii) create a streamlined process for eligible borrowers
to apply for and receive such discharge.
``(Q) Student loan servicer requirements.--A student loan
servicer may not--
``(i) charge a fee for responding to a qualified written
request under this chapter;
``(ii) fail to take timely action to respond to a qualified
written request from a borrower to correct an error relating
to an allocation of payment or the payoff amount of the
postsecondary education loan;
``(iii) fail to take reasonable steps to avail the borrower
of all possible alternative repayment arrangements to avoid
default;
``(iv) fail to perform the obligations required under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.);
``(v) fail to respond within 10 business days to a request
from a borrower to provide the name, address, and other
relevant contact information of the loan holder of the
borrower's postsecondary education loan or, for a Federal
Direct Loan or a Federal Perkins Loan, the Secretary of
Education or the institution of higher education who made the
loan, respectively;
``(vi) fail to comply with any applicable requirement of
the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et
seq.);
``(vii) fail to comply with any other obligation that the
Bureau, by regulation, has determined to be appropriate to
carry out the consumer protection purposes of this chapter;
or
``(viii) fail to perform other standard servicer's
duties.''; and
(B) by adding at the end the following:
``(g) Information To Be Available at No Charge.--The
information required to be disclosed under this section shall
be made available at no charge to the borrower.''; and
(2) in section 130(a)--
(A) in paragraph (3), by striking ``128(e)(7)'' and
inserting ``128(e)(10)''; and
(B) in the flush matter at the end, by striking ``or
paragraph (4)(C), (6), (7), or (8) of section 128(e),'' and
inserting ``or paragraph (4)(C), (9), (10), or (11) of
section 128(e),''.
(c) Student Loan Information by Eligible Lenders.--Section
433 of the Higher Education Act of 1965 (20 U.S.C. 1083) is
amended--
(1) in subsection (b)--
(A) in paragraph (12), by striking ``and'' after the
semicolon;
(B) in paragraph (13), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(14) a statement that--
``(A) the borrower may be entitled to servicemember and
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) and other Federal or State laws;
and
``(B) a Servicemember and Veterans Liaison designated under
section 128(e)(16)(I)(i) of the Truth in Lending Act (15
U.S.C. 1638(e)(16)(I)(i)) is available to answer inquiries
about servicemember and veteran benefits, including the toll-
free telephone number to contact the Liaison pursuant to such
section.''; and
(2) in subsection (e)--
(A) in paragraph (2), by adding at the end the following:
``(D) A statement that--
``(i) the borrower may be entitled to servicemember and
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) and other Federal or State laws;
and
``(ii) a Servicemember and Veterans Liaison designated
under section 128(e)(16)(I)(i) of the Truth in Lending Act
(15 U.S.C. 1638(e)(16)(I)(i)) is available to answer
inquiries about servicemember and veteran benefits, including
the toll-free telephone number to contact the Liaison
pursuant to such section.''; and
(B) in paragraph (3), by adding at the end the following:
``(F) A statement that--
``(i) the borrower may be entitled to servicemember and
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) and other Federal or State laws;
and
``(ii) a Servicemember and Veterans Liaison designated
under section 128(e)(16)(I)(i) of the Truth in Lending Act
(15 U.S.C. 1638(e)(16)(I)(i)) is available to answer
inquiries about servicemember and veteran benefits, including
the toll-free telephone number to contact the Liaison
pursuant to such section.''.

SEC. 702. WAGE GARNISHMENT.

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et
seq.) is amended by inserting after section 812 (15 U.S.C.
1692j) the following:

``SEC. 812A. LIMITS ON SEIZURES OF INCOME FOR DEBT RELATING
TO EDUCATION LOANS.

``(a) Definitions.--In this section--
``(1) the term `adjusted gross income' has the meaning
given the term in section 62 of the Internal Revenue Code of
1986; and
``(2) the term `poverty line' means the poverty line (as
defined by the Office of Management and Budget and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a
family of the size involved.
``(b) Limitation on Collection.--
``(1) In general.--Notwithstanding any other provision of
law, a debt collector that is engaged in the collection of
debts relating to education loans may not take any action to
cause, or seek to cause, the collection of such a debt that
is taken from the wages, Federal benefits, or other amounts
due to a consumer through garnishment, deduction, offset, or
seizure in an amount that is more than the amount described
in paragraph (2).
``(2) Calculation.--The amount described in this paragraph
is the quotient obtained by dividing--
``(A) 10 percent of the amount by which the adjusted gross
income of the consumer exceeds 185 percent of the poverty
line; by
``(B) 12.
``(3) Presumption.--For purposes of this section, if a debt
collector described in paragraph (1) is unable to determine
the family size of a consumer, that person shall presume that
the family size of the consumer is 3 individuals.
``(c) Communications.--Any communication by a debt
collector described in subsection (b)(1) that is for the
purpose of seizing income of a consumer for debt that relates
an education loan shall be considered--
``(1) an attempt to collect a debt; and
``(2) conduct in connection with the collection of a debt
for the purposes of this title.''.

SEC. 703. IMPROVED CONSUMER PROTECTIONS FOR PRIVATE EDUCATION
LOANS.

Section 128(e) of the Truth in Lending Act (15 U.S.C.
1638(e)), as amended by this Act, is further amended--
(1) by adding at the end the following:
``(17) Discharge of private education loans in the event of
death or disability of the borrower.--Each private education
loan shall include terms that provide that the liability to
repay the loan shall be cancelled--
``(A) upon the death of the borrower;
``(B) if the borrower becomes permanently and totally
disabled, as determined under paragraph (1) or (3) of section
437(a) of the Higher Education Act of 1965 (20 U.S.C.
1087(a)) and the regulations promulgated by the Secretary of
Education under that section; and
``(C) if the Secretary of Veterans Affairs or the Secretary
of Defense determines that the borrower is unemployable due
to a service-connected condition or disability, in accordance
with the requirements of section 437(a)(2) of that Act and
the regulations promulgated by the Secretary of Education
under that section; and
``(18) Terms for co-borrowers.--Each private education loan
shall include terms that clearly define the requirements to
release a co-borrower from the obligation.
``(19) Prohibition of acceleration of payments on private
education loans.--
``(A) In general.--Except as provided in subparagraph (B),
a private education loan executed after the date of enactment
of this paragraph may not include a provision that permits
the loan holder or student loan servicer to accelerate, in
whole or in part, payments on the private education loan.
``(B) Acceleration caused by a payment default.--A private
education loan may include a provision that permits
acceleration of the loan in cases of payment default.
``(20) Prohibition on denial of credit due to eligibility
for protection under servicemembers civil relief act.--A
private educational lender may not deny or refuse credit to
an individual who is entitled to any right or protection
provided under the Servicemembers Civil Relief Act (50 U.S.C.
App. 501 et seq.) or subject, solely by reason of such
entitlement, such individual to any other action described in
paragraphs (1) through (6) of section 108 of such Act.'';
(2) in paragraph (1)--
(A) by striking subparagraph (D) and inserting the
following:
``(D) requirements for a co-borrower, including--
``(i) any changes in the applicable interest rates without
a co-borrower; and
``(ii) any conditions the borrower is required meet in
order to release a co-borrower from the private education
loan obligation;'';
(B) by redesignating subparagraphs (O), (P), (Q), and (R)
as subparagraphs (P), (Q), (R), and (S), respectively; and
(C) by inserting after subparagraph (N) the following:
``(O) in the case of a refinancing of education loans that
include a Federal student loan made, insured, or guaranteed
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.)--

[[Page S1599]]

``(i) a list containing each loan to be refinanced, which
shall identify whether the loan is a private education loan
or a Federal student loan made, insured, or guaranteed under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.); and
``(ii) benefits that the borrower may be forfeiting,
including income-driven repayment options, opportunities for
loan forgiveness, forbearance or deferment options, interest
subsidies, and tax benefits;''; and
(3) in paragraph (2)--
(A) by redesignating subparagraphs (O) and (P) as
subparagraphs (P) and (Q), respectively; and
(B) by inserting after subparagraph (N) the following:
``(O) in the case of a refinancing of education loans that
include a Federal student loan made, insured, or guaranteed
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.)--
``(i) a list containing each loan to be refinanced, which
shall identify whether the loan is a private education loan
or a Federal student loan made, insured, or guaranteed under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.); and
``(ii) benefits that the borrower may be forfeiting,
including income-driven repayment options, opportunities for
loan forgiveness, forbearance or deferment options, interest
subsidies, and tax benefits;''.

SEC. 704. KNOW BEFORE YOU OWE.

(a) Short Title.--This section may be cited as the ``Know
Before You Owe Private Education Loan Act''.
(b) Amendments to the Truth in Lending Act.--
(1) In general.--Section 128(e) of the Truth in Lending Act
(15 U.S.C. 1638(e)), as amended by this Act, is further
amended--
(A) by striking paragraph (3) and inserting the following:
``(3) Institutional certification required.--
``(A) In general.--Except as provided in subparagraph (B),
before a creditor may issue any funds with respect to an
extension of credit described in this subsection, the
creditor shall obtain from the relevant institution of higher
education where such loan is to be used for a student, such
institution's certification of--
``(i) the enrollment status of the student;
``(ii) the student's cost of attendance at the institution
as determined by the institution under part F of title IV of
the Higher Education Act of 1965; and
``(iii) the difference between--

``(I) such cost of attendance; and
``(II) the student's estimated financial assistance,
including such assistance received under title IV of the
Higher Education Act of 1965 and other financial assistance
known to the institution, as applicable.

``(B) Exception.--Notwithstanding subparagraph (A), a
creditor may issue funds, not to exceed the amount described
in subparagraph (A)(iii), with respect to an extension of
credit described in this subsection without obtaining from
the relevant institution of higher education such
institution's certification if such institution fails to
provide within 15 business days of the creditor's request for
such certification--
``(i) notification of the institution's refusal to certify
the request; or
``(ii) notification that the institution has received the
request for certification and will need additional time to
comply with the certification request.
``(C) Loans disbursed without certification.--If a creditor
issues funds without obtaining a certification, as described
in subparagraph (B), such creditor shall report the issuance
of such funds in a manner determined by the Director of the
Bureau of Consumer Financial Protection.''; and
(B) by adding at the end the following:
``(21) Provision of information.--
``(A) Provision of information to students.--
``(i) Loan statement.--A creditor that issues any funds
with respect to an extension of credit described in this
subsection shall send loan statements, where such loan is to
be used for a student, to borrowers of such funds not less
than once every 3 months during the time that such student is
enrolled at an institution of higher education.
``(ii) Contents of loan statement.--Each statement
described in clause (i) shall--

``(I) report the borrower's total remaining debt to the
creditor, including accrued but unpaid interest and
capitalized interest;
``(II) report any debt increases since the last statement;
and
``(III) list the current interest rate for each loan.

``(B) Notification of loans disbursed without
certification.--On or before the date a creditor issues any
funds with respect to an extension of credit described in
this subsection, the creditor shall notify the relevant
institution of higher education, in writing, of the amount of
the extension of credit and the student on whose behalf
credit is extended. The form of such written notification
shall be subject to the regulations of the Bureau.
``(C) Annual report.--A creditor that issues funds with
respect to an extension of credit described in this
subsection shall prepare and submit an annual report to the
Bureau containing the required information about private
student loans to be determined by the Bureau, in consultation
with the Secretary of Education.''.
(2) Definition of private education loan.--Section
140(a)(7)(A) of the Truth in Lending Act (15 U.S.C.
1650(a)(7)(A)) is amended--
(A) by redesignating clause (ii) as clause (iii);
(B) in clause (i), by striking ``and'' after the semicolon;
and
(C) by adding after clause (i) the following:
``(ii) is not made, insured, or guaranteed under title VII
or title VIII of the Public Health Service Act (42 U.S.C. 292
et seq. and 296 et seq.); and''.
(3) Regulations.--Not later than 365 days after the date of
enactment of this section, the Bureau of Consumer Financial
Protection shall issue regulations in final form to implement
paragraphs (3) and (21) of section 128(e) of the Truth in
Lending Act (15 U.S.C. 1638(e)), as amended by paragraph (1).
Such regulations shall become effective not later than 6
months after their date of issuance.
(c) Amendments to the Higher Education Act of 1965.--
(1) Program participation agreements.--Section 487(a) of
the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is
amended by striking paragraph (28) and inserting the
following:
``(28)(A) Upon the request of a private educational lender,
acting in connection with an application initiated by a
borrower for a private education loan in accordance with
section 128(e)(3) of the Truth in Lending Act, the
institution shall, not later than 15 days after the date of
receipt of the request--
``(i) provide such certification to such private
educational lender--
``(I) that the student who initiated the application for
the private education loan, or on whose behalf the
application was initiated, is enrolled or is scheduled to
enroll at the institution;
``(II) of such student's cost of attendance at the
institution as determined under part F of this title; and
``(III) of the difference between--

``(aa) the cost of attendance at the institution; and
``(bb) the student's estimated financial assistance
received under this title and other assistance known to the
institution, as applicable;

``(ii) notify the creditor that the institution has
received the request for certification and will need
additional time to comply with the certification request; or
``(iii) provide notice to the private educational lender of
the institution's refusal to certify the private education
loan under subparagraph (D).
``(B) With respect to a certification request described in
subparagraph (A), and prior to providing such certification
under subparagraph (A)(i) or providing notice of the refusal
to provide certification under subparagraph (A)(iii), the
institution shall--
``(i) determine whether the student who initiated the
application for the private education loan, or on whose
behalf the application was initiated, has applied for and
exhausted the Federal financial assistance available to such
student under this title and inform the student accordingly;
and
``(ii) provide the borrower whose loan application has
prompted the certification request by a private education
lender, as described in subparagraph (A)(i), with the
following information and disclosures:
``(I) The availability of, and the borrower's potential
eligibility for, Federal financial assistance under this
title, including disclosing the terms, conditions, interest
rates, and repayment options and programs of Federal student
loans.
``(II) The borrower's ability to select a private
educational lender of the borrower's choice.
``(III) The impact of a proposed private education loan on
the borrower's potential eligibility for other financial
assistance, including Federal financial assistance under this
title.
``(IV) The borrower's right to accept or reject a private
education loan within the 30-day period following a private
educational lender's approval of a borrower's application and
about a borrower's 3-day right to cancel period.
``(C) For purposes of this paragraph, the terms `private
educational lender' and `private education loan' have the
meanings given such terms in section 140 of the Truth in
Lending Act (15 U.S.C. 1650).
``(D)(i) An institution shall not provide a certification
with respect to a private education loan under this paragraph
unless the private education loan includes terms that
provide--
``(I) the borrower alternative repayment plans, including
loan consolidation or refinancing; and
``(II) that the liability to repay the loan shall be
cancelled upon the death or disability of the borrower or co-
borrower.
``(ii) In this paragraph, the term `disability' means a
permanent and total disability, as determined in accordance
with the regulations of the Secretary of Education, or a
determination by the Secretary of Veterans Affairs that the
borrower is unemployable due to a service connected-
disability.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the effective date of the regulations
described in subsection (b)(3).
(3) Preferred lender arrangement.--Section 151(8)(A)(ii) of
the Higher Education Act of 1965 (20 U.S.C. 1019(8)(A)(ii))
is amended by inserting ``certifying,'' after ``promoting,''.
(d) Report.--Not later than 24 months after the issuance of
regulations under subsection (b)(3), the Director of the
Bureau of

[[Page S1600]]

Consumer Financial Protection and the Secretary of Education
shall jointly submit to Congress a report on the compliance
of institutions of higher education and private educational
lenders with section 128(e)(3) of the Truth in Lending Act
(15 U.S.C. 1638(e)), as amended by subsection (b), and
section 487(a)(28) of the Higher Education Act of 1965 (20
U.S.C. 1094(a)), as amended by subsection (c). Such report
shall include information about the degree to which specific
institutions utilize certifications in effectively
encouraging the exhaustion of Federal student loan
eligibility and lowering student private education loan debt.

SEC. 705. BANKRUPTCY PROTECTIONS.

(a) Exceptions to Discharge.--Section 523(a)(8) of title
11, United States Code, is amended by striking ``dependents,
for'' and all that follows through the end of subparagraph
(B) and inserting ``dependents, for an educational benefit
overpayment or loan made, insured, or guaranteed by a
governmental unit or made under any program funded in whole
or in part by a governmental unit or an obligation to repay
funds received from a governmental unit as an educational
benefit, scholarship, or stipend;''.
(b) Undue Hardship.--Section 523 of title 11, United States
Code, is amended by adding at the end the following:
``(f) Undue Hardship.--
``(1) In general.--For the purpose of subsection (a)(8),
there shall be a rebuttable presumption that excepting such
debt from discharge under this section would impose an undue
hardship on the debtor or the debtor's dependents if the
debtor demonstrates that, on the date of filing of the
petition, the debtor--
``(A) is receiving benefits under title II or XVI of the
Social Security Act (42 U.S.C. 401 et seq., 1381 et seq.) on
the basis of disability;
``(B) has been determined by the Secretary of Veterans
Affairs to be unemployable due to a service-connected
disability;
``(C) is a family caregiver of an eligible veteran pursuant
to section 1720G of title 38;
``(D) is a member of a household that has a gross income
that is less than 200 percent of the poverty line, and
provides for the care and support of an elderly, disabled, or
chronically ill member of the household of the debtor or
member of the immediate family of the debtor;
``(E) is a member of a household that has a gross income
that is less than 200 percent of the poverty line, and the
income of the debtor is solely derived from benefit payments
under section 202 of the Social Security Act (42 U.S.C. 402);
or
``(F) during the 5-year period preceding the filing of the
petition (exclusive of any applicable suspension of the
repayment period), was not enrolled in an education program
and had a gross income that was less than 200 percent of the
poverty line during each year during that period.
``(2) Definition.--In this subsection, the term `poverty
line' means the poverty line (as defined by the Office of
Management and Budget and revised annually in accordance with
section 673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2)) applicable to a household of the size
involved.''.

SEC. 706. EDUCATION LOAN OMBUDSMAN.

Section 1035 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5535) is amended--
(1) in the section heading, by striking ``private'';
(2) in subsection (a)--
(A) by striking ``a Private'' and inserting ``an''; and
(B) by striking ``private'';
(3) in subsection (b), by striking ``private education
student loan'' and inserting ``education loan'';
(4) in subsection (c)--
(A) in the matter preceding paragraph (1), by striking
``subsection'' and inserting ``section'';
(B) in paragraph (1), by striking ``private'';
(C) by striking paragraph (2) and inserting the following:
``(2) coordinate with the unit of the Bureau established
under section 1013(b)(3), in order to monitor complaints by
education loan borrowers and responses to those complaints by
the Bureau or other appropriate Federal or State agency;'';
and
(D) in paragraph (3), by striking ``private'';
(5) in subsection (d)--
(A) in paragraph (2)--
(i) by striking ``on the same day annually''; and
(ii) by inserting ``and be made available to the public''
after ``Representatives''; and
(B) by adding at the end the following:
``(3) Contents.--The report required under paragraph (1)
shall include information on the number, nature, and
resolution of complaints received, disaggregated by lender,
servicer, region, State, and institution of higher
education.''; and
(6) by striking subsection (e) and inserting the following:
``(e) Definitions.--In this section:
``(1) Education loan.--The term `education loan' means--
``(A) a private education loan, as defined in section 140
of the Truth in Lending Act (15 U.S.C.1650); and
``(B) a student loan made, insured, or guaranteed under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.).
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 140 of the Truth in Lending Act (15 U.S.C.
1650).''.

SEC. 707. SERVICEMEMBERS AND STUDENT LOANS.

(a) In General.--Title II of the Servicemembers Civil
Relief Act (50 U.S.C. 3931 et seq.) is amended by adding at
the end the following new sections:

``SEC. 209. CONTINUAL MONITORING BY PRIVATE EDUCATIONAL
LENDERS OF STATUS OF SERVICEMEMBERS.

``(a) In General.--Each private educational lender shall
continuously monitor the Defense Manpower Data Center, or any
successor database, for the purpose of continuously
monitoring the duty status of any borrower of a private
education loan who is a servicemember and complying with the
requirements of this Act.
``(b) Policies and Procedures.--Monitoring conducted under
subsection (a) shall be conducted in accordance with such
policies and procedures as the Secretary of Defense may
prescribe for purposes of this section.
``(c) Definitions.--In this section:
``(1) Private educational lender.--The term `private
educational lender' has the meaning given such term in
section 140 of the Truth in Lending Act (15 U.S.C. 1650).
``(2) Private education loan.--The term `private education
loan' has the meaning given such term in such section.

``SEC. 210. FORGIVENESS OF STUDENT DEBT.

``(a) Forgiveness of Student Debt of Servicemembers Who Die
in Line of Duty While Serving on Active Duty.--Upon the death
of a servicemember who dies in line of duty while serving on
active duty as a member of the Armed Forces, each student
loan of the servicemember is forgiven.
``(b) Forgiveness of Federal Student Debt Upon Service-
connected Death.--Upon the service-connected death of a
servicemember, the balance of each student loan of the
servicemember guaranteed or issued by the Federal Government
is forgiven.
``(c) Service-connected Defined.--In this section, the term
`service-connected' has the meaning given such term in
section 101 of title 38, United States Code.''.
(b) Clerical Amendment.--The table of contents of such Act
is amended by inserting after the item relating to section
208 the following new items:

``Sec. 209. Continual monitoring by private educational lenders of
status of servicemembers.
``Sec. 210. Forgiveness of student debt.''.
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