[Congressional Record Volume 161, Number 48 (Monday, March 23, 2015)]
[Senate]
[Pages S1710-S1717]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
  S. 833. A bill to authorize the Secretary of Veterans Affairs to 
carry out certain major medical facility projects for which 
appropriations were made for fiscal year 2015, and for other purposes; 
to the Committee on Veterans' Affairs.
  Mrs. FEINSTEIN. Mr. President, I speak today regarding the 
introduction of a bill, cosponsored by Senator Boxer, to provide the 
Department of Veterans Affairs with the authority to obligate and 
expend previously appropriated funds in order to begin construction on 
critical projects in Los Angeles, Long Beach, and San Diego, CA, as 
well as in Canandaigua, NY.
  In December of 2014, Congress passed the Consolidated and Continuing 
Appropriations Act of 2015, which provided $446,800,000 for major 
construction projects at these Veterans Affairs Medical Centers. 
However, the Department of Veterans Affairs cannot spend the money that 
has already been appropriated and begin construction on these projects 
because it lacks a separate authorization, which is required by law.
  The funding provided for the three California projects will be used 
to make critical, time-sensitive seismic safety corrections to 
structures in West Los Angeles, Long Beach, and San Diego. These 
buildings, which include a spinal cord injury clinic, a mental health 
care facility, and a community living center, are at exceptionally high 
risk of collapse or suffering severe damage during an earthquake. If a 
major earthquake struck in proximity to one of these Medical Centers 
while it was in use by veterans and the Department's employees, there 
could be numerous injuries and deaths. The U.S. Geological Survey 
estimates there is a greater than 99 percent chance that a magnitude 
6.7 or greater earthquake will strike California in the next 30 years.
  It is important to note that even less severe earthquakes can cause 
damage to seismically unsafe buildings that result in injuries and 
deaths. The California Governor's Office of Emergency Services believes 
that the damage to seismically unfit buildings caused by the magnitude 
6.0 earthquake that hit Napa, CA, on August 24, 2014 at 3:20 a.m. would 
likely have resulted in many more deaths and injuries if it had struck 
during business hours when these structures were in use. As it was, the 
earthquake caused over 200 injuries and one fatality. In fact, the U.S. 
Geological Survey estimates that a 6.0 magnitude earthquake hits 
California every 1.2 years on average. This is a terrifying figure, and 
it is why I strongly believe that Congress must enact this legislation 
without delay.
  I appreciate that the Senate Veterans' Affairs Committee worked 
extremely hard to pass important legislation last year to address the 
veterans' health care access crisis and that it, therefore, did not 
report a construction authorization bill. However, in the case of these 
four projects, the money has already been appropriated and is available 
for expenditure as soon as an authorization is forthcoming from 
Congress.
  More hearings and delays are unnecessary to determine whether the 
Senate should pass this legislation. The Senate Appropriations 
Committee held hearings with the Department on these projects in 2014 
as it reviewed the President's fiscal year 2015 Budget Request. The 
Committee marked up and reported the Military Construction, Veterans 
Affairs, and Related Agencies appropriations bill in a bipartisan 
fashion. Congress voted in a bipartisan fashion to pass this bill and 
approve funding for these projects as part of the Consolidated and 
Continuing Appropriations Act of 2015.
  I want to reiterate that Congress appropriated funding for these four 
major medical projects in 2014, and the Department is ready to start 
construction today. However, due only to the lack of a separate 
authorization, the Department cannot start this vital work to protect 
our veterans and Federal employees. This is exactly why Americans 
believe that the Federal Government does not work. How does Congress 
explain this unnecessary delay to veterans who go to medical 
appointments in the buildings at risk of collapse or major damage? 
There is no reason to delay authorizing these projects when the money 
has already been appropriated.
  I urge my colleagues to join me in quickly approving this legislation 
so that the Department can begin modification of buildings that 
currently leave veterans and the Department's employees in harm's way 
before the next earthquake strikes California. Congress must act before 
the next earthquake strikes.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mrs. Boxer, Mr. Merkley, Mr. 
        Blumenthal, and Mr. Whitehouse):
  S. 838. A bill to amend the Truth in Lending Act to establish a 
national usury rate for consumer credit transactions; to the Committee 
on Banking, Housing, and Urban Affairs.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 838

       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 ``Protecting Consumers from 
     Unreasonable Credit Rates Act of 2015''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) attempts have been made to prohibit usurious interest 
     rates in America since colonial times;

[[Page S1711]]

       (2) at the Federal level, in 2006, Congress enacted a 
     Federal 36 percent annualized usury cap for servicemembers 
     and their families for covered credit products, as defined by 
     the Department of Defense, which curbed payday, car title, 
     and tax refund lending around military bases;
       (3) notwithstanding such attempts to curb predatory 
     lending, high-cost lending persists in all 50 States due to 
     loopholes in State laws, safe harbor laws for specific forms 
     of credit, and the exportation of unregulated interest rates 
     permitted by preemption;
       (4) due to the lack of a comprehensive Federal usury cap, 
     consumers annually pay approximately $17,000,000,000 for 
     high-cost overdraft loans, as much as $7,000,000,000 for 
     storefront and online payday loans, and additional amounts in 
     unreported revenues from bank direct deposit advance loans 
     and high-cost online installment loans;
       (5) cash-strapped consumers pay on average 400 percent 
     annual interest for payday loans, 300 percent annual interest 
     for car title loans, up to 3,500 percent for bank overdraft 
     loans, and triple-digit rates for online installment loans;
       (6) a national maximum interest rate that includes all 
     forms of fees and closes all loopholes is necessary to 
     eliminate such predatory lending; and
       (7) alternatives to predatory lending that encourage small 
     dollar loans with minimal or no fees, installment payment 
     schedules, and affordable repayment periods should be 
     encouraged.

     SEC. 3. NATIONAL MAXIMUM INTEREST RATE.

       Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 140B. MAXIMUM RATES OF INTEREST.

       ``(a) In General.--Notwithstanding any other provision of 
     law, no creditor may make an extension of credit to a 
     consumer with respect to which the fee and interest rate, as 
     defined in subsection (b), exceeds 36 percent.
       ``(b) Fee and Interest Rate Defined.--
       ``(1) In general.--For purposes of this section, the fee 
     and interest rate includes all charges payable, directly or 
     indirectly, incident to, ancillary to, or as a condition of 
     the extension of credit, including--
       ``(A) any payment compensating a creditor or prospective 
     creditor for--
       ``(i) an extension of credit or making available a line of 
     credit, such as fees connected with credit extension or 
     availability such as numerical periodic rates, annual fees, 
     cash advance fees, and membership fees; or
       ``(ii) any fees for default or breach by a borrower of a 
     condition upon which credit was extended, such as late fees, 
     creditor-imposed not sufficient funds fees charged when a 
     borrower tenders payment on a debt with a check drawn on 
     insufficient funds, overdraft fees, and over limit fees;
       ``(B) all fees which constitute a finance charge, as 
     defined by rules of the Bureau in accordance with this title;
       ``(C) credit insurance premiums, whether optional or 
     required; and
       ``(D) all charges and costs for ancillary products sold in 
     connection with or incidental to the credit transaction.
       ``(2) Tolerances.--
       ``(A) In general.--With respect to a credit obligation that 
     is payable in at least 3 fully amortizing installments over 
     at least 90 days, the term `fee and interest rate' does not 
     include--
       ``(i) application or participation fees that in total do 
     not exceed the greater of $30 or, if there is a limit to the 
     credit line, 5 percent of the credit limit, up to $120, if--

       ``(I) such fees are excludable from the finance charge 
     pursuant to section 106 and regulations issued thereunder;
       ``(II) such fees cover all credit extended or renewed by 
     the creditor for 12 months; and
       ``(III) the minimum amount of credit extended or available 
     on a credit line is equal to $300 or more;

       ``(ii) a late fee charged as authorized by State law and by 
     the agreement that does not exceed either $20 per late 
     payment or $20 per month; or
       ``(iii) a creditor-imposed not sufficient funds fee charged 
     when a borrower tenders payment on a debt with a check drawn 
     on insufficient funds that does not exceed $15.
       ``(B) Adjustments for inflation.--The Bureau may adjust the 
     amounts of the tolerances established under this paragraph 
     for inflation over time, consistent with the primary goals of 
     protecting consumers and ensuring that the 36 percent fee and 
     interest rate limitation is not circumvented.
       ``(c) Calculations.--
       ``(1) Open end credit plans.--For an open end credit plan--
       ``(A) the fee and interest rate shall be calculated each 
     month, based upon the sum of all fees and finance charges 
     described in subsection (b) charged by the creditor during 
     the preceding 1-year period, divided by the average daily 
     balance; and
       ``(B) if the credit account has been open less than 1 year, 
     the fee and interest rate shall be calculated based upon the 
     total of all fees and finance charges described in subsection 
     (b)(1) charged by the creditor since the plan was opened, 
     divided by the average daily balance, and multiplied by the 
     quotient of 12 divided by the number of full months that the 
     credit plan has been in existence.
       ``(2) Other credit plans.--For purposes of this section, in 
     calculating the fee and interest rate, the Bureau shall 
     require the method of calculation of annual percentage rate 
     specified in section 107(a)(1), except that the amount 
     referred to in that section 107(a)(1) as the `finance charge' 
     shall include all fees, charges, and payments described in 
     subsection (b)(1) of this section.
       ``(3) Adjustments authorized.--The Bureau may make 
     adjustments to the calculations in paragraphs (1) and (2), 
     but the primary goals of such adjustment shall be to protect 
     consumers and to ensure that the 36 percent fee and interest 
     rate limitation is not circumvented.
       ``(d) Definition of Creditor.--As used in this section, the 
     term `creditor' has the same meaning as in section 702(e) of 
     the Equal Credit Opportunity Act (15 U.S.C. 1691a(e)).
       ``(e) No Exemptions Permitted.--The exemption authority of 
     the Bureau under section 105 shall not apply to the rates 
     established under this section or the disclosure requirements 
     under section 127(b)(6).
       ``(f) Disclosure of Fee and Interest Rate for Credit Other 
     Than Open End Credit Plans.--In addition to the disclosure 
     requirements under section 127(b)(6), the Bureau may 
     prescribe regulations requiring disclosure of the fee and 
     interest rate established under this section.
       ``(g) Relation to State Law.--Nothing in this section may 
     be construed to preempt any provision of State law that 
     provides greater protection to consumers than is provided in 
     this section.
       ``(h) Civil Liability and Enforcement.--In addition to 
     remedies available to the consumer under section 130(a), any 
     payment compensating a creditor or prospective creditor, to 
     the extent that such payment is a transaction made in 
     violation of this section, shall be null and void, and not 
     enforceable by any party in any court or alternative dispute 
     resolution forum, and the creditor or any subsequent holder 
     of the obligation shall promptly return to the consumer any 
     principal, interest, charges, and fees, and any security 
     interest associated with such transaction. Notwithstanding 
     any statute of limitations or repose, a violation of this 
     section may be raised as a matter of defense by recoupment or 
     setoff to an action to collect such debt or repossess related 
     security at any time.
       ``(i) Violations.--Any person that violates this section, 
     or seeks to enforce an agreement made in violation of this 
     section, shall be subject to, for each such violation, 1 year 
     in prison and a fine in an amount equal to the greater of--
       ``(1) 3 times the amount of the total accrued debt 
     associated with the subject transaction; or
       ``(2) $50,000.
       ``(j) State Attorneys General.--An action to enforce this 
     section may be brought by the appropriate State attorney 
     general in any United States district court or any other 
     court of competent jurisdiction within 3 years from the date 
     of the violation, and such attorney general may obtain 
     injunctive relief.''.

     SEC. 4. DISCLOSURE OF FEE AND INTEREST RATE FOR OPEN END 
                   CREDIT PLANS.

       Section 127(b)(6) of the Truth in Lending Act (15 U.S.C. 
     1637(b)(6)) is amended by striking ``the total finance charge 
     expressed'' and all that follows through the end of the 
     paragraph and inserting ``the fee and interest rate, 
     displayed as `FAIR', established under section 141.''.
                                 ______
                                 
      By Ms. COLLINS (for herself and Ms. Cantwell):
  S. 839. A bill to amend title XVIII of the Social Security Act to 
extend the rural add-on payment in the Medicare home health benefit, 
and for other purposes; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today with my colleague from 
Washington to introduce the Preserve Access to Rural Home Health 
Services Act of 2015 to extend the modest increase in payments for home 
health services in rural areas that otherwise will expire on January 1 
of next year.
  Home health has become an increasingly important part of our health 
care system. The kinds of highly skilled--and often technically 
complex--services that our Nation's home health caregivers provide have 
enabled millions of our most frail and vulnerable older and disabled 
citizens to avoid hospitals and nursing homes and stay just where they 
want to be--in the comfort, privacy, and security of their own homes. I 
have accompanied several of Maine's caring home health nurses on their 
visits to patients and have seen first hand the difference that they 
are making for patients and their families.
  Surveys have shown that the delivery of home health services in rural 
areas can be as much as 12 to 15 percent more costly because of the 
extra travel time required to cover long distances between patients, 
higher transportation expenses, and other factors. Because of the 
longer travel times, rural caregivers are unable to make as many visits 
in a day as their urban counterparts. For example, home health care 
agencies in Aroostook County in Northern Maine, where I am from, cover 
almost 6,700 square miles, with an average population of less than 11

[[Page S1712]]

persons per square mile. These agencies' costs are understandably much 
higher than other agencies located in more urban areas due to the long 
distances the staff must drive to see clients. Moreover, the staff is 
not able to see as many patients due to time on the road.
  Agencies serving rural areas are also frequently smaller than their 
urban counterparts, which means that their relative costs are higher. 
Smaller agencies with fewer patients and fewer visits mean that fixed 
costs, particularly those associated with meeting regulatory 
requirements, are spread over a much smaller number of patients and 
visits, increasing overall per-patient and per-visit costs.
  Moreover, in many rural areas, home health agencies are the primary 
caregivers for homebound beneficiaries with limited access to 
transportation. These rural patients often require more time and care 
than their urban counterparts and are understandably more expensive for 
agencies to serve. If the extra three per cent rural payment is not 
extended, agencies may be forced to make decisions not to accept rural 
patients with greater care needs. That could translate into less access 
to health care for ill, homebound seniors. The result would likely be 
that these seniors would be hospitalized more frequently and would have 
to seek care in nursing homes, adding considerable cost to the system.
  Failure to extend the rural add-on payment would only put more 
pressure on rural home health agencies that are already operating on 
very narrow margins and could force some of the agencies to close their 
doors altogether. If any of these agencies were forced to close, the 
Medicare patients in that region could lose all of their access to home 
care.
  The legislation we are introducing today will extend the rural add-on 
for 5 years and help to ensure that Medicare patients in rural areas 
continue to have access to the home health services they need. 
Moreover, we would offset costs of the bill by reducing the home health 
outlier fund by .25 percent over the same 5 years. I urge our 
colleagues to join us as cosponsors.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Reed, and Ms. Warren):
  S. 840. A bill to require certain protections for student loan 
borrowers, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 840

       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 Loan Borrower Bill 
     of Rights''.

     SEC. 2. TRUTH IN LENDING ACT AMENDMENTS.

       The Truth in Lending Act (15 U.S.C. 1601 et seq.) is 
     amended--
       (1) in section 128 (15 U.S.C. 1638)--
       (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 (11) as 
     paragraphs (8) through (14), 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 (15)(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 
     (15)(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 (15)(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 
     (15)(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 (15)(A)) or assigned to collection; and
       ``(D) a statement that a Servicemember and Veterans Liaison 
     designated under paragraph (15)(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 
     (15)(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 (15)(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 (15)(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

[[Page S1713]]

     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:
       ``(15) 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;
       ``(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) 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--

[[Page S1714]]

       ``(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.
       ``(E) 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:

       ``(I) On a per-loan basis when a borrower has multiple 
     postsecondary education loans in a billing group.
       ``(II) In an amount greater than 4 percent of the amount of 
     the payment past due.
       ``(III) Before the end of the 15-day period beginning on 
     the date the payment is due.
       ``(IV) More than once with respect to a single late 
     payment.
       ``(V) The borrower fails to make a singular, non-successive 
     regularly-scheduled payment on the postsecondary education 
     loan.

       ``(ii) 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.
       ``(F) Rehabilitation of 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.
       ``(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--

       ``(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--
       ``(i) a borrower who is not less than 60 days delinquent 
     under the postsecondary education loan;
       ``(ii) a borrower who seeks information regarding, seeks to 
     enter an agreement for, or seeks to resolve an issue under a 
     repayment option that requires subsequent submission of 
     supporting documentation; and
       ``(iii) a borrower who seeks to modify the terms of the 
     repayment of the postsecondary education loan because of 
     hardship.
       ``(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; and
       ``(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.

       ``(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.
       ``(K) Error resolution.--The Director of the Bureau of 
     Consumer Financial Protection, in consultation with the 
     Secretary of Education, shall promulgate rules requiring 
     servicers to establish error resolution procedures to allow 
     borrowers to inquire about errors related to their 
     postsecondary education loans and obtain timely resolution of 
     such errors.
       ``(L) Additional servicing standards.--The Director of the 
     Bureau of Consumer Financial Protection, in consultation with 
     the Secretary of Education, may establish additional 
     servicing standards to reduce delinquencies, assignment to 
     collections, defaults, and charge-offs, and to ensure 
     borrowers understand their rights and obligations related to 
     their postsecondary education loans.
       ``(M) 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 
     subparagraph applies to predispute arbitration agreements 
     entered into before the date of

[[Page S1715]]

     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.
       ``(N) 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 
     section or under any other applicable authorities available 
     to such agencies by law.
       ``(O) 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.
       ``(P) 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).
       ``(Q) 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.''; 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),''.

     SEC. 3. 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)(15)(I)(i) of the Truth in Lending Act (15 
     U.S.C. 1638(e)(15)(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)(15)(I)(i) of the Truth in Lending Act 
     (15 U.S.C. 1638(e)(15)(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)(15)(I)(i) of the Truth in Lending Act 
     (15 U.S.C. 1638(e)(15)(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. 4. KNOW BEFORE YOU OWE.

       (a) 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 section 2, 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:
       ``(16) 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 of Consumer 
     Financial Protection.
       ``(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 of Consumer Financial Protection containing the 
     required information about private student loans to be 
     determined by the Bureau of Consumer Financial Protection, 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 Act, the Director of the Bureau of Consumer 
     Financial Protection shall issue regulations in final form to 
     implement paragraphs (3) and (16) 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.
       (b) 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 (15 U.S.C. 
     1638(e)(3)), the institution shall within 15 days of receipt 
     of a certification 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

[[Page S1716]]

       ``(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 (a)(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,''.
       (c) Report.--Not later than 24 months after the issuance of 
     regulations under subsection (a)(3), the Director of the 
     Bureau of 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 
     (a), and section 487(a)(28) of the Higher Education Act of 
     1965 (20 U.S.C. 1094(a)), as amended by subsection (b). 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. 5. MARKETING LIMITATION.

       Section 456 of the Higher Education Act of 1965 (20 U.S.C. 
     1087f) is amended by adding at the end the following:
       ``(c) Limitation on Contracts for the Servicing of Loans.--
     A servicer may not market to the borrower of a student loan 
     made, insured, or guaranteed under this title which the 
     servicer services, a financial product or service using data 
     obtained through the servicing relationship, or otherwise 
     during the servicing process.''.

     SEC. 6. SERVICER CHOICE.

       Section 456 of the Higher Education Act of 1965 (20 U.S.C. 
     1087f), as amended by section 5, is further amended by adding 
     at the end the following:
       ``(d) Switching Servicers.--The Secretary shall establish a 
     program that allows a borrower of a loan made under this part 
     after the date of enactment of the Student Loan Borrower Bill 
     of Rights to switch from the assigned servicer of such loan 
     to a new servicer based on a random reassignment by the 
     Secretary.''.

     SEC. 7. CENTRALIZED POINT OF ACCESS.

       Part G of title IV of the Higher Education Act of 1965 (20 
     U.S.C. 1088 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 493E. CENTRALIZED POINT OF ACCESS.

       ``Not later than 2 years after the date of enactment of the 
     Student Loan Borrower Bill of Rights, the Secretary shall 
     establish a centralized point of access for all borrowers of 
     loans that are made, insured, or guaranteed under this title 
     that are in repayment, including a central location for 
     account information and payment processing for such loan 
     servicing, regardless of the specific servicer.''.

     SEC. 8. REPORT ON STUDENT LOAN SERVICERS.

       Not later than 1 year after the date of enactment of this 
     Act, the Director of the Bureau of Consumer Financial 
     Protection, in consultation with the Secretary of Education, 
     shall submit a report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate, the Committee on Health, 
     Education, Labor, and Pensions of the Senate, the Committee 
     on Financial Services of the House of Representatives, and 
     the Committee on Education and the Workforce of the House of 
     Representatives on private and Federal student loan 
     servicers, including--
       (1) any legislative recommendations to improve student loan 
     servicing standards; and
       (2) information on proactive early intervention methods by 
     servicers to help distressed student loan borrowers enroll in 
     any eligible repayment plans.
                                 ______
                                 
      By Mrs. ERNST (for herself, Mr. Tillis, Mr. Grassley, and Mr. 
        Cornyn):
  S. 841. A bill to expand eligibility for health care under the 
Veterans Access, Choice, and Accountability Act of 2014 to include 
certain veterans seeking mental health care, and for other purposes; to 
the Committee on Veterans' Affairs.
  Mrs. ERNST. Mr. President, as we begin this week with the serious and 
necessary discussions about the budget, I rise today to talk about 
something that is very personal to me, something that is incredibly 
close to my heart--the service and sacrifice of our Nation's finest men 
and women, those who serve in our Armed Forces.
  As the budget process moves forward, we must ensure that our national 
security needs are met and that our veterans can receive the much-
needed care and assistance they deserve.
  Growing up on a farm in rural southwest Iowa, my parents instilled in 
my sister, my brother, and me the importance of hard work, service, and 
sacrifice.
  In the summer between my freshman and sophomore years at Iowa State 
University, I was very fortunate to attend an agricultural exchange in 
Ukraine, when it was still part of the former Soviet Union. The Iowa 
students and I lived on a collective farm for a number of weeks. In the 
evening, when the community members came together, we did not talk 
about agricultural practices, like I anticipated. What we talked about 
was what it was like to be free, what it was like to be an American. 
Those were the things the Ukrainians wanted to know. They wanted to 
know about freedom, our Republic, and democracy. Just a few short years 
later, they became an independent nation. They are a sovereign nation.
  It was then that I better understood what it meant to have freedom 
and how much people elsewhere truly desire it. I wanted to do my part 
to ensure our country always remained free.
  That realization led me to make a decision when I was 19 years old--
to join the Army Reserve Officers' Training Corps, commonly known as 
ROTC.
  For over two decades, I have had the great honor of wearing our 
Nation's uniform. Today, I serve as a lieutenant colonel in the Iowa 
Army National Guard, and I have been privileged to have led and 
commanded at many levels, from platoon to battalion. From 2003 to 2004, 
I served as a company commander in Operation Iraqi Freedom. My unit was 
tasked with running convoys through Kuwait and southern Iraq.
  As a soldier, I learned firsthand the vital role that our citizen 
soldiers play. Citizen soldiers are folks who train for military duty 
so they are prepared to defend in the face of an emergency. These men 
and women take on this task voluntarily and can be called upon to serve 
at any time.
  While overseas, I had the opportunity to serve alongside some of 
America's finest, our bravest men and women. I saw firsthand how 
dangerous threats against our Nation can be.
  It is becoming increasingly important that our military--Active Duty, 
National Guard, and Reserve--are always working together as one 
cohesive unit. We are strongest in numbers when working together to 
build one another up and support one another. Our mission is clear and 
we come from all corners of the country united on the same goal--to 
defend our freedom.
  I continue to remain focused on strengthening our national security,

[[Page S1717]]

both in my role in the Iowa National Guard and on the Armed Services 
Committee, where we discuss ways to support our exceptional military 
and develop bipartisan strategies to confront terrorism and destroy Al 
Qaeda, ISIS, and those who are radicalized by them.
  Here in the Senate, we also have an incredible responsibility not 
only to make sure our country is protected but also to ensure we live 
up to the promises made to our veterans. These men and women are 
trained and have selflessly sacrificed in defense of our freedoms and 
our way of life. However, we must ensure that our veterans are prepared 
to transition back to civilian life. They deserve nothing less than the 
benefits they were promised and a quality of care we can all be proud 
of.
  Unfortunately, that has not been the case. According to the VA, there 
are approximately 22 veteran suicides per day. We hear this number from 
time to time. But think about it--22 veteran suicides per day.
  In November 2014 testimony before the Senate Veterans' Affairs 
Committee, the VA's chief consultant for mental health said the average 
wait time for a mental health appointment at the VA is 36 days. We can, 
and must, do better for our veterans.
  If a non-VA mental health care professional can reach a veteran 1 
day, 1 week or even 2 weeks earlier than 36 days, Congress nor the VA 
should be an obstacle to affording a veteran potentially lifesaving 
mental health treatment.
  Veterans themselves are the only ones who know their mental health 
limit, and a veteran should receive the benefit of the doubt about 
where that limit is--not the VA.
  This is an issue that impacts all eras of veterans. Since coming to 
Washington, I have heard from many veterans on this very issue. One 
veteran in particular from the Vietnam war era admitted that he had 
twice attempted suicide. This veteran felt like he didn't have anywhere 
to go. We have to do better.
  Today, as my first piece of legislation in the Senate, I am 
introducing the Prioritizing Veterans Access to Mental Health Care Act.
  This legislation provides an option for our veterans to receive 
mental health treatment until they can receive comprehensive mental 
health care at the VA. This authorization for mental health care 
provides a backstop--other than the emergency room--for our veterans. 
Ultimately, the ER should not be considered a backstop for delayed 
mental health care at the VA. Most veterans who seek mental health 
treatment at emergency rooms do so when they have reached the limits of 
their suffering.
  There is no acceptable VA wait time for mental health care for our 
veterans. The limits to how much suffering a veteran can endure simply 
cannot be accurately measured by the VA or by any medical professional.
  Specifically, this legislation puts veterans mental health care first 
and foremost, provides a backstop to VA mental health care, and 
prioritizes incentives to hire more mental health care professionals at 
the Department of Veterans Affairs.
  The Prioritizing Veterans Access to Mental Health Care Act does 
several things.
  First, it amends the Veterans Access, Choice, and Accountability Act 
of 2014 to where a veteran is instantly authorized non-VA care if the 
veteran provides an electronic or hard-copy statement in writing that 
he or she is not receiving adequate or timely mental health care at the 
VA. This eliminates the 40-mile and VA wait-time triggers for mental 
health care under the choice act.
  Second, it prioritizes incentives for the hiring of mental health 
care professionals at the VA.
  And third, it provides the VA 90 days to enact the program.
  I hope this legislation will receive broad bipartisan support because 
ensuring our veterans have access to the mental health care they 
deserve is not a conservative or liberal concept. It is not a 
Republican or Democrat idea. It is an American value.
  If we do not stand up for America's tenacious survivors, who will? 
Thanks to these brave men and women, we are able to stand on this floor 
and fight for our beliefs and ideals. These veterans fought for us and 
defended us tirelessly. They endured more than some of us can ever 
imagine. The invisible wounds of war can no longer go unnoticed. Now, 
it is our duty to do all we can to thank them and ensure they have 
access to the quality mental health care they deserve.
  God bless these men and women, and let us strive to do better for 
them.

                          ____________________