[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6446 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 6446

  To amend the Truth in Lending Act to provide private education loan 
 forgiveness for certain borrowers, to require disclosures related to 
     private education loan default rates, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2016

  Mr. Pallone (for himself, Mr. Cohen, Ms. Moore, Mr. Payne, and Mrs. 
 Watson Coleman) 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 amend the Truth in Lending Act to provide private education loan 
 forgiveness for certain borrowers, to require disclosures related to 
     private education loan default rates, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Borrower Higher Education 
Lending Protection Act of 2016'' or the ``Student Borrower HELP Act of 
2016''.

SEC. 2. PRIVATE EDUCATION LOAN FORGIVENESS FOR DECEASED OR DISABLED 
              STUDENTS.

    (a) Amendments to TILA.--Section 140 of the Truth in Lending Act 
(15 U.S.C. 1650) is amended by adding at the end the following new 
subsection:
    ``(g) Deferment or Discharge of Private Education Loan.--
            ``(1) Temporary disability.--A student borrower of a 
        private education loan shall not be obligated to make payments 
        on the loan, and interest shall not accrue on the loan, during 
        the period in which the student borrower is determined to be 
        under a disability (as defined in section 216(i) or 223(d) of 
        the Social Security Act (42 U.S.C. 416(i))).
            ``(2) Death or total and permanent disability.--If a 
        student borrower of a private education loan dies or becomes 
        totally or permanently disabled (as determined by the Secretary 
        of Education in accordance with section 437(a)(1) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087(a)(1))), any outstanding 
        balance on the loan shall be deemed to be discharged, and the 
        student borrower, any cosignor on the loan, or the estate of 
        either the student borrower or the cosignor shall not be 
        obligated to make any additional payments on the loan.''.
    (b) Exclusion From Gross Income.--Section 108(f)(1) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking the period at the end and inserting ``, 
        or'',
            (2) by striking ``if such discharge was pursuant to a 
        provision'' and inserting the following: ``if such discharge 
        was pursuant to--
                    ``(A) a provision'', and
            (3) by adding at the end the following:
                    ``(B) section 140(g)(2) of the Truth in Lending 
                Act.''.

SEC. 3. REQUIRED DISCLOSURES OF DEFAULT RATES FOR PRIVATE EDUCATION 
              LOANS.

    Section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (Q), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (R) as 
                subparagraph (S); and
                    (C) by inserting after subparagraph (Q) the 
                following new subparagraph:
                    ``(R) the number of private education loans offered 
                by the private educational lender and the number and 
                rate of default on such loans made by the lender; 
                and'';
            (2) in paragraph (2)--
                    (A) in subparagraph (O), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (P) as 
                subparagraph (Q); and
                    (C) by inserting after subparagraph (O) the 
                following new subparagraph:
                    ``(P) the number of private education loans offered 
                by the private educational lender and the number and 
                rate of default on such loans made by the lender; 
                and''; and
            (3) in paragraph (4), by striking ``(M) through (P)'' and 
        inserting ``(M) through (Q)''.

SEC. 4. EFFECTIVE DATE; APPLICABILITY.

    This Act and the amendments made by this Act--
            (1) shall take effect on the date that is 1 year after the 
        date of the enactment of this Act; and
            (2) shall only apply to private education loans (as defined 
        in section 140(a) of the Truth in Lending Act (15 U.S.C. 
        1650(a))) entered into on or after the effective date described 
        in paragraph (1).
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