[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1384 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1384

   To amend the Truth in Lending Act to provide for the discharge of 
 student loan obligations upon the death of the student borrower, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 19, 2015

  Mr. Schumer introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
   To amend the Truth in Lending Act to provide for the discharge of 
 student loan obligations upon the death of the student borrower, 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 ``Andrew Prior Act'' or ``Andrew's 
Law''.

SEC. 2. DISCHARGE OF PRIVATE STUDENT LOANS.

    Section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)) is 
hereby amended by adding at the end the following:
            ``(12) Discharge of private educational loans in the event 
        of the death of the borrower.--
                    ``(A) Definitions.--As used in this paragraph--
                            ``(i) the term `cosigner'--
                                    ``(I) means any individual who is 
                                liable for the obligation of another 
                                without compensation, regardless of how 
                                designated in the contract or 
                                instrument relating to the obligation;
                                    ``(II) includes any person whose 
                                signature is requested as a condition 
                                to grant credit or to forbear on 
                                collection; and
                                    ``(III) does not include a spouse 
                                of an individual referred to in 
                                subclause (I) whose signature is needed 
                                to perfect the security interest in the 
                                loan;
                            ``(ii) the term `private educational 
                        lender' has the same meaning as in section 140; 
                        and
                            ``(iii) the term `private education loan' 
                        has the same meaning as in section 140.
                    ``(B) Private educational loans discharged.--In the 
                event of the death of a borrower of a private 
                educational loan, neither the estate of the borrower 
                nor any cosigner of such private educational loan shall 
                be obligated to repay the outstanding principle or 
                interest on the loan.
                    ``(C) Limitations.--The Bureau--
                            ``(i) shall develop such safeguards as may 
                        be necessary and appropriate to prevent fraud 
                        and abuse in the discharge of liability under 
                        this subsection; and
                            ``(ii) notwithstanding any other provision 
                        of this subsection, may promulgate regulations 
                        to reinstate the obligation of loans discharged 
                        under this subsection in any case in which the 
                        Secretary determines necessary to protect the 
                        public interest.''.

SEC. 3. REGULATIONS.

    The Bureau of Consumer Financial Protection may issue such 
regulations as may be necessary and appropriate to carry out this Act.
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