H.R. 2498House117th Congress (2021-2023)In Committee

Private Loan Disability Discharge Act of 2021

Introduced April 14, 2021

AI-Generated Summary

Updated February 8, 2026 at 1:37 AM UTC

The Private Loan Disability Discharge Act of 2021 would require private education loan holders to cancel (discharge) a borrower’s loan if the student borrower dies or becomes totally and permanently disabled. It also extends that discharge to any co‑signer and applies when the borrower receives a tax‑related discharge under the Internal Revenue Code. The rule would affect private lenders, student borrowers, and their co‑signers.

Key Provisions

  • Amends the Truth in Lending Act to add death and total‑and‑permanent‑disability as reasons a private education loan must be discharged, prohibiting further collection after notification.
  • Defines “total and permanent disability” by reference to the existing federal regulation (34 CFR 685.102(b)).
  • Requires lenders to also discharge loans when the borrower’s liability is discharged for tax purposes under IRC §108(f)(5)(A).
  • Allows the Consumer Financial Protection Bureau to issue implementing regulations.
  • Sets the amendments to take effect one year after the law is enacted.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

April 14, 2021

View full timeline
HouseIntro Referral

Introduced in House

April 14, 2021

HouseIntro Referral

Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

April 14, 2021

Floor Debate

8 members

What members said about H.R. 2498 on the floor

5 Republicans3 Democrats
Ed Perlmutter
Rep. Ed PerlmutterD-CO-7 · May 12, 2021

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 380 and ask for its immediate consideration. Mr. Speaker, for the purposes of debate only, I yield the customary 30…

Guy Reschenthaler
Rep. Guy ReschenthalerR-PA-14 · May 12, 2021

Mr. Speaker, I yield myself such time as I may consume. I want to thank the distinguished gentleman, my good friend from Colorado, for yielding me the customary 30 minutes. The rule before us today…

Don Bacon
Rep. Don BaconR-NE-2 · May 12, 2021

Mr. Speaker, I rise to urge defeat of the previous question so that we can immediately consider my bill to ensure that those who risk their lives to protect all of us are afforded greater protections…

John H. Rutherford
Rep. John H. RutherfordR-FL-4 · May 12, 2021

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, I rise to urge defeat of the previous question so that we can immediately consider the Protect and Serve Act, my bipartisan bill to…

Lois Frankel
Rep. Lois FrankelD-FL-21 · May 12, 2021

Mr. Speaker, I thank the chairman for yielding to me. Mr. Speaker, give me a break. Since when is having babies a liberal activity? In fact, I believe that police women have babies, too. And let me…

Show 3 more
Troy E. Nehls
Rep. Troy E. NehlsR-TX-22 · May 12, 2021

Mr. Speaker, I rise in support of the Back the Blue Act, the Serve and Protect Act, and the Jaime Zapata and Victor Avila Federal Law Enforcement Protection Act. Mr. Speaker, all of these are…

Marjorie Taylor Greene
Rep. Marjorie Taylor GreeneR-GA-14 · May 12, 2021

The Pregnant Workers Fairness Act, I rise in opposition to H.R. 1065. There is language that I find many Democrats use in a lot of Democrats' bills. It is called pregnancy rights. Pregnancy rights…

Deborah K. Ross
Rep. Deborah K. RossD-NC-2 · May 12, 2021

Mr. Speaker, debt collectors often operate with impunity, threatening servicepeople, denying small business owners due process, and harassing customers and homeowners with repeated calls, texts, and…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in HouseIssued April 14, 2021

I

117th CONGRESS

1st Session

H. R. 2498

IN THE HOUSE OF REPRESENTATIVES

April 14, 2021

Ms. Dean introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide for the discharge of a private education loan in the case of death or total and permanent disability of a student obligor, and for other purposes.

1.

Short title

This Act may be cited as the Private Loan Disability Discharge Act of 2021.

2.

Protections for obligors and cosigners in case of death or total and permanent disability

(a)

In general

Section 140(g) of the Truth in Lending Act (15 U.S.C. 1650(g)) is amended—

(1)

in paragraph (2)—

(A)

in the heading, by striking in case of death of borrower;

(B)

in subparagraph (A), by inserting after of the death, the following: or total and permanent disability; and

(C)

in subparagraph (C), by inserting after of the death, the following: or total and permanent disability; and

(2)

by adding at the end the following:

(3)

Discharge in case of death or total and permanent disability of borrower

The holder of a private education loan shall, when notified of the death or total and permanent disability of a student obligor, discharge the liability of the student obligor on the loan and may not, after such notification—

(A)

attempt to collect on the outstanding liability of the student obligor; and

(B)

in the case of total and permanent disability, monitor the disability status of the student obligor at any point after the date of discharge.

(4)

Total and permanent disability defined

For the purposes of this subsection and with respect to an individual, the term total and permanent disability means the individual is totally and permanently disabled, as such term is defined in section 685.102(b) of title 34 of the Code of Federal Regulations.

(5)

Private discharge in cases of certain discharge for death or disability

The holder of a private education loan shall, when notified of the discharge of liability of a student obligor on a loan described under section 108(f)(5)(A) of the Internal Revenue Code of 1986, discharge any liability of the student obligor (and any cosigner) on any private education loan which the private education loan holder holds and may not, after such notification—

(A)

attempt to collect on the outstanding liability of the student obligor; and

(B)

in the case of total and permanent disability, monitor the disability status of the student obligor at any point after the date of discharge.

.

(b)

Tax liability

Section 108(f)(5)(A) of the Internal Revenue Code of 1986 (26 U.S.C. 108(f)(5)(A)) is amended—

(1)

by striking , and before January 1, 2026;

(2)

in clause (ii), by striking or;

(3)

by redesignating clause (iii) as clause (iv); and

(4)

by inserting after clause (ii) the following:

(iii)

pursuant to paragraph (3) or (5) of section 140(g) of the Truth in Lending Act, or

.

(c)

Rulemaking

The Director of the Bureau of Consumer Financial Protection may issue rules to implement the amendments made by subsection (a) as the Director determines appropriate.

(d)

Effective date

The amendments made by this section shall take effect 1 year after the date of the enactment of this Act.