[Congressional Record (Bound Edition), Volume 156 (2010), Part 12]
[House]
[Pages 16836-16839]
[From the U.S. Government Publishing Office, www.gpo.gov]




             CHRISTOPHER BRYSKI STUDENT LOAN PROTECTION ACT

  Mr. ADLER of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 5458) to amend the Truth in Lending Act and the 
Higher Education Act of 1965 to require additional disclosures and 
protections for students and cosigners with respect to student loans, 
and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5458

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

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the 
     ``Christopher Bryski Student Loan Protection Act'' and 
     ``Christopher's Law''.
       (b) Findings.--The Congress finds the following:
       (1) There is no requirement for Federal or private 
     educational lenders to provide information with respect to 
     creating a durable power of attorney for financial 
     decisionmaking in accordance with State law to be used in the 
     event of the death, incapacitation, or disability of the 
     borrower or such cosigner (if any).
       (2) No requirement exists for private educational lenders' 
     master promissory notes to include a clear and conspicuous 
     description of the responsibilities of a borrower and 
     cosigner in the event the borrower or cosigner becomes 
     disabled, incapacitated, or dies.
       (3) Of the 1,400,000 people who sustain a traumatic brain 
     injury each year in the United States, 50,000 die; 235,000 
     are hospitalized; and 1,100,000 are treated and released from 
     an emergency department.
       (4) It is estimated that the annual incidence of spinal 
     cord injury, not including those who die at the scene of an 
     accident, is approximately 40 cases per 1,000,000 people in 
     the United States or approximately 12,000 new cases each 
     year. Since there have not been any overall incidence studies 
     of spinal cord injuries in the United States since the 1970s, 
     it is not known if incidence has changed in recent years.
       (5) In the 2007-2008 academic year, 13 percent of students 
     attending a 4-year public school, and 26.2 percent of 
     students attending a 4-year private school, borrowed monies 
     from private educational lenders.
       (6) According to Sallie Mae, in 2009, the number of 
     cosigned private education loans increased from 66 percent to 
     84 percent of all private education loans.

     SEC. 2. ADDITIONAL STUDENT LOAN PROTECTIONS.

       (a) In General.--Section 140 of the Truth in Lending Act 
     (15 U.S.C. 1650) is amended by adding at the end the 
     following new subsection:
       ``(f) Additional Protections Relating to Death or 
     Disability of Borrower or Cosigner of a Private Education 
     Loan.--
       ``(1) Obligation to discuss durable power of attorneys.--In 
     conjunction with--
       ``(A) any student loan counseling, if any, provided by a 
     covered educational institution to any new borrower and 
     cosigner (if any) at the time of any loan application, loan 
     origination, or loan consolidation, or at the time the 
     cosigner assumes responsibility for repayment, the 
     institution shall provide information with respect to 
     creating a durable power of attorney for financial 
     decisionmaking, in accordance with State law; and
       ``(B) any application for a private education loan, the 
     private educational lender involved in such loan shall 
     provide information to the borrower, and cosigner (if any), 
     concerning the creation of a durable power of attorney for 
     financial decisionmaking, in accordance with State law, with 
     respect to such loan.
       ``(2) Clear and conspicuous description of cosigner's 
     obligation.--In the case of any private educational lender 
     who extends a private education loan for which any cosigner 
     is jointly liable, the lender shall clearly and conspicuously 
     describe, in writing, the cosigner's obligations with respect 
     to the loan, including the effect the death, disability, or 
     inability to engage in any substantial gainful activity of 
     the borrower or cosigner (if any) would have on any such 
     obligation, in language that the Board determines would give 
     a reasonable person a reasonable understanding of the 
     obligation being assumed by becoming a cosigner for the loan.
       ``(3) Model forms.--The Board shall publish model forms 
     under section 105 for--
       ``(A) the information required under paragraph (1) with 
     respect to a durable power of attorney for financial 
     decisionmaking, for each State (and such model forms under 
     this subparagraph shall be uniform for all States to the 
     greatest extent possible); and
       ``(B) describing a cosigner's obligation for purposes of 
     paragraph (2).
       ``(4) Definition of death, disability, or inability to 
     engage in any substantial

[[Page 16837]]

     gainful activity.--For the purposes of this subsection with 
     respect to a borrower or cosigner, the term `death, 
     disability, or inability to engage in any substantial gainful 
     activity'--
       ``(A) means any condition described in section 437(a) of 
     the Higher Education Act of 1965 (20 U.S.C. 1087(a)); and
       ``(B) shall be interpreted by the Board in such a manner as 
     to conform with the regulations prescribed by such Secretary 
     of Education under section 437(a) of the Higher Education Act 
     of 1965 (20 U.S.C. 1087(a)) to the fullest extent 
     practicable, including safeguards to prevent fraud and 
     abuse.''.
       (b) Definitions.--Subsection (a) of section 140 of the 
     Truth in Lending Act (15 U.S.C. 1650(a)) is amended by adding 
     at the end the following new paragraphs:
       ``(9) Durable power of attorney.--The term `durable power 
     of attorney'--
       ``(A) means a written instruction recognized under State 
     law (whether statutory or as recognized by the courts of the 
     State), relating to financial decisionmaking in cases when 
     the individual lacks the capacity to make such decisions; or
       ``(B) has the meaning given to such term in the Uniform 
     Durable Power of Attorney Act of 2006 and sections 5-501 
     through 5-505 of the Uniform Probate Code, as in effect in 
     any State.
       ``(10) Cosigner.--The term `cosigner'--
       ``(A) means any individual who is liable for the obligation 
     of another without compensation, regardless of how designated 
     in the contract or instrument;
       ``(B) includes any person whose signature is requested as 
     condition to grant credit or to forebear on collection; and
       ``(C) does not include a spouse of an individual referred 
     to in subparagraph (A) whose signature is needed to perfect 
     the security interest in the loan.''.

     SEC. 3. FEDERAL STUDENT LOANS.

       Section 485(l)(2) of the Higher Education Act of 1965 (20 
     U.S.C. 1092(l)(2)) is amended by adding at the end the 
     following:
       ``(L) Information on the conditions required to discharge 
     the loan due to the death, disability, or inability to engage 
     in any substantial gainful activity of the borrower in 
     accordance with section 437(a), and an explanation that, in 
     the case of a private education loan made through a private 
     educational lender, the borrower, the borrower's estate, and 
     any consigner of a such a private education loan may be 
     obligated to repay the full amount of the loan, regardless of 
     the death or disability of the borrower or any other 
     condition described in section 437(a).
       ``(M) The model form for the State in which the institution 
     is located with respect to durable power of attorneys 
     published by the Board of Governors of the Federal Reserve 
     System in accordance with subsection (f)(3)(A) of section 140 
     of the Truth in Lending Act (15 U.S.C. 1650) and, in the case 
     of a borrower who is not a resident of the State in which the 
     institution is located, information on how to access such 
     model form for the State in which the borrower is a 
     resident.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Adler) and the gentleman from Alabama (Mr. Bachus) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey.


                             General Leave

  Mr. ADLER of New Jersey. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days within which to revise and 
extend their remarks on this legislation and to insert extraneous 
material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New Jersey?
  There was no objection.
  Mr. ADLER of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise today to support the passage of H.R. 5458.
  Like all of my colleagues, I receive thousands of pieces of mail each 
week. When a letter from my constituent Ryan Bryski came across my 
desk, I knew I had to act.
  Ryan's brother Christopher, for whom this bill is named, was a young 
man attending Rutgers University when he suffered a traumatic brain 
injury after an accidental fall. Christopher was in a vegetative state 
for 2 years before his passing in 2006. For a parent, that situation 
would have been enough to endure, but for the Bryski family, their 
suffering was far more than just the loss of a youngest son.
  Like most college students, Christopher had to borrow money to 
finance an education. He had received loans through both the Federal 
Government as well as a private lender. Like most college age kids, 
Christopher did not have enough credit to receive a private loan on his 
own, so his father Joseph cosigned his loan.
  Federal loans discharge upon the death of a student. However, private 
loans do not. Since Joseph cosigned Christopher's loan, he was now 
responsible to pay it back in full. The situation puzzled the Bryski 
family because nowhere in their loan contract was a clause specifying 
what would happen to the loan upon the borrower or cosigner's death or 
disability. Their lender told them that according to the bank, 
Christopher's persistent vegetative state and subsequent death was a 
simple inability to pay, so the financial burden was placed on Joseph.
  This was not the only problem the Bryskis encountered after their 
son's fatal accident. Due to the fact that Christopher was over 18 when 
he left home to attend school, he was, according to the law, an adult 
who was able to make his own financial, legal, and health care 
decisions.
  With Christopher in a vegetative state, his parents needed to 
maintain his financial standing with the school, as well as pay the 
bills and fulfill all his contracts. The Bryskis spent countless time 
and money regaining custody of their son so that they could prevent him 
from defaulting on other bills in case he should recover.

                              {time}  1750

  They were not only being responsible parents, but responsible 
Americans.
  The Bryskis also endured a personal interview of Christopher so that 
the court could be sure Christopher was unable to make decisions on his 
behalf. Literally, someone from the court came to Christopher's 
hospital room and yelled in his face to ensure that he would not 
respond and that he was indeed in a vegetative state.
  As a father of four boys, two of whom are in college, I cannot 
imagine going through what the Bryskis went through. This is why I 
introduced H.R. 5458, the Christopher Bryski Student Loan Protection 
Act, or Christopher's Law. This bill would help prevent other families 
from going through what the Bryskis did by ensuring that private 
educational lenders clearly describe the obligations of borrowers and 
cosigners upon their death or disability--what the banks call ``an 
inability to pay.'' The rest of us would call it a family tragedy.
  Christopher's Law will also urge the Federal Reserve Board to adopt 
and interpret the same definitions of death and disability as the 
Department of Education, which has used these definitions for many, 
many years. This bill does not require that private loans be discharged 
in case of death or disability. It simply requires private educational 
lenders to define death and disability so borrowers and their cosigners 
can refer to these definitions should a catastrophe happen to their 
family. It also states that private education lenders as well as the 
Federal Government must provide information on creating a durable power 
of attorney to handle the borrower's financial affairs should the 
borrower be unable to make those decisions on their own. In other 
words, the borrower and the lender must be on the same page.
  Since I introduced this legislation, I have been approached by many 
other families in my district with similar problems as the Bryskis 
encountered. I believe this is commonsense, bipartisan legislation that 
deserves the support of the entire body.
  I would like to thank Chairman Miller and Ranking Member Kline, 
Chairman Frank and Ranking Member Bachus, for bringing this important 
legislation to the floor, and, frankly, minority staff, for improving 
this legislation with amendments just in the last few days. It is the 
way we're supposed to be doing business for the people of our great 
country. I urge its passage.
  I reserve the balance of my time.
  Mr. BACHUS. Mr. Speaker, I rise to address this legislation, and I 
yield myself such time as I may consume.
  H.R. 5458 requires private education loan lenders to provide 
disclosures to students about the benefits of creating a durable power 
of attorney. For most traditional students, a student loan is the first 
large financial decision he or she will be making. As such, a student 
and the cosigner of the loan--often a parent, as with the Bryskis--
should be

[[Page 16838]]

aware of their repayment responsibilities, including those 
responsibilities if the student should become unable to make payments. 
And so disclosures, I think, are always helpful.
  In addition to existing disclosures for loans, this bill requires 
private education loan lenders to provide additional information to 
students and cosigners about the benefits of durable powers of attorney 
for financial decision-making. A college's financial aid administrator 
would also be required to provide information to students and their 
cosigners about creating a durable power of attorney.
  I do have some concerns not addressed to this bill itself but that 
the Federal Government is nearing the point of requiring so many 
disclosures that they may overwhelm the consumer. I also fear that the 
requirement that the Federal Reserve Board create 50 different forms 
based on various State laws surrounding durable powers of attorney will 
be especially burdensome to the Board. But that's a minor concern.
  While a better solution long term would be to provide two simple 
disclosures that ensure that the cosigners and the students understand 
the responsibilities of loan repayment and are provided a place to do 
their own research about durable powers of attorney, this may be the 
first time that an individual may have a need for this sort of legal 
document, and these additional disclosures could help better inform the 
borrowers and cosigners. So for that reason I do not rise in opposition 
to this legislation.
  I want to extend my prayers and thoughts to the Bryski family and 
other families who experience such a tragedy as this. I thank the 
gentleman from New Jersey for his kind words.
  I yield back the balance of my time.
  Mr. ADLER of New Jersey. I thank the gentleman from Alabama.
  I am glad he mentioned the Bryski family. Ryan Bryski, the brother of 
Christopher, is in the gallery. I thank him and his family for sharing 
what they went through so we can avoid other families going through 
what you went through. I join Mr. Bachus in having Christopher and 
other families similarly situated in our prayers. But, Ryan, I thank 
you personally for your guidance in this.
  I think this is a wonderful example of people trying to work together 
to solve a people problem. I share some of Mr. Bachus' concerns that 
maybe we have too many disclosures from time to time. I would be eager 
to work with the Member to try to work that out going forward and 
streamline the process. But I think this is simple legislation that is 
appropriate to meet a need that comes up every so often with tragic 
circumstances beyond the actual injury, disability, and death of young 
people.
  I urge strong and immediate passage of this bill.


                announcement by the speaker pro tempore

  The SPEAKER pro tempore. The Chair reminds Members that it is 
inappropriate to recognize occupants of the gallery.
  Mr. ADLER of New Jersey. Mr. Speaker, I rise today to support the 
passage of H.R. 5458.
  Like all of my colleagues, I receive thousands of pieces of mail a 
week. When a letter from my constituent Ryan Bryski came across my desk 
I knew I had to act.
  Ryan's brother Christopher, for whom this bill is named, was a young 
man attending Rutgers University when he suffered a traumatic brain 
injury after an accidental fall.
  Christopher was in a vegetative state for 2 years before his passing 
in 2006.
  For a parent, that situation would have been enough to endure, but 
for the Bryski family, their suffering was far more than just the loss 
of their youngest son.
  Like most college students, Christopher had to borrow money to 
finance his education.
  He had received loans through both the Federal Government as well as 
a private lender. Like most college aged kids, Christopher did not have 
enough credit to receive a private loan on his own, so his father 
Joseph cosigned his loan.
  Federal loans discharge upon the death of a student, however private 
loans do not. Since Joseph cosigned Christopher's loan he was now 
responsible to pay it back in full.
  This situation puzzled the Bryski family because nowhere in their 
loan contract was a clause specifying what would happen to the loan 
upon the borrower or cosigner's death or disability.
  Their lender told them that according to the bank Christopher's 
persistent vegetative state and subsequent death was a simple 
``inability to pay,'' so the financial burden was placed on Joseph.
  This was not the only problem the Bryskis encountered after their 
son's fatal accident.
  Due to the fact that Christopher was over 18 when he left home to 
attend school he was, according to the law, an adult who was able to 
make his own financial, legal, and health care decisions.
  With Christopher in a vegetative state, his parent needed to maintain 
his financial standing with his school, as well as pay his bills and 
fulfill all of his contracts.
  The Bryskis spent countless time and money regaining custody of their 
own son so that they could prevent him from defaulting on other bills 
in case he should recover.
  They were not only being responsible parents, but responsible 
Americans.
  The Bryskis also endured a personal interview of Christopher, so that 
the courts could be sure Christopher was indeed unable to make 
decisions on his behalf. Literally, someone from the court came to 
Christopher's hospital room and yelled in his face to ensure that he 
would not respond and he was indeed in a vegetative state.
  As a father of 4 boys, 2 of whom are in college, I cannot imagine 
going through what the Bryskis went through.
  This is why I introduced H.R. 5458 the Christopher Bryski Student 
Loan Protection Act or Christopher's Law.
  This bill would help prevent other families from going through what 
the Bryskis did by ensuring that private educational lenders clearly 
describe the obligations of borrowers and cosigners upon their death or 
disability--what the banks call ``an inability to pay.'' The rest of us 
would call it a family tragedy.
  Christopher's Law will also urge the Federal Reserve Board to adopt 
and interpret the same definitions of death and disability as the 
Department of Education, mainstreaming and clarifying the law.
  This bill does not require that private loans be discharged in case 
of death or disability. It simply requires private educational lenders 
to define death and disability so that borrowers and cosigners can 
refer to these definitions should a catastrophe happen to their family.
  It also states that the private education lender as well as the 
Federal Government must provide information on creating a durable power 
of attorney to handle the borrower's financial affairs should the 
borrower be unable to make those decisions on their own.
  In other words, borrower and lender must be on the same page.
  Since I introduced this legislation I have been approached by other 
families in my district with the same problems the Bryskis encountered.
  Giving students and their families more choices to protect them 
against disability or death is an important step. Our ultimate goal 
should be giving all students and families this protection. I would 
urge lenders to consider looking at student loan debt forgiveness in 
the case of death or disability as the Federal Government does. This is 
also an area where the new Consumer Financial Protection Bureau could 
play a role, and that agency does not need to wait for an act of 
Congress.
  I believe this is a common-sense bipartisan piece of legislation that 
deserves the support of this entire body.
  I would like to thank Chairman Miller and Chairman Frank for bringing 
this important legislation to the floor.
  I urge its passage.
  Ms. RICHARDSON. Mr. Speaker, I rise today in support of H.R. 5458, 
which would help families avoid financial uncertainty by requiring 
banks providing student loans to inform borrowers and cosigners of 
their obligations in case of incapacity or death; to define those terms 
in a standard way; and to discuss the option of credit insurance, which 
helps pay off debt in the event of death.
  I want to thank my colleague, Congressman John H. Adler, for 
introducing this legislation. I would also like to express my deepest 
condolences to the family of Christopher Bryski.
  Mr. Speaker, the Bryskis are hardworking people who in 2006 lost 
their son Christopher in a recreational accident, a tragedy no parent 
should ever have to endure and certainly one that the Bryskis could 
never have anticipated. In the midst of this tragedy, the Bryskis were 
unexpectedly burdened with Christopher's remaining student loan debt. 
As they soon found out, co-signers are often obliged to pay off the 
balance of private student loans in the instance of such tragedies, a 
requirement that is typically not included in federal loans. This bill 
would protect families like the Bryskis, including many of the families 
in my district, which

[[Page 16839]]

contains three community colleges and five universities.
  From 2007-08, 13 percent of students attending four-year public 
colleges or universities and 26.2 percent of those attending private 
four-year institutions had private student loans. The SLM Corporation, 
the major private loan provider commonly known as Sallie Mae, estimates 
that 84 percent of private student loans involve cosigners. These 
statistics make clear the need for private loan companies to thoroughly 
educate the students and families to whom they provide aid. This is the 
best way to ensure that American families are adequately equipped to 
manage their loans under any circumstances.
  Mr. Speaker, I urge my colleagues to join me in supporting H.R. 5458 
and recognizing the immense burden that may befall millions of families 
across the nation if Congress does not act.
  Mr. ADLER of New Jersey. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New Jersey (Mr. Adler) that the House suspend the rules 
and pass the bill, H.R. 5458, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________