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H.R. 3450 (114th): Student Debt Repayment Fairness Act of 2015

The text of the bill below is as of Sep 8, 2015 (Introduced).


I

114th CONGRESS

1st Session

H. R. 3450

IN THE HOUSE OF REPRESENTATIVES

September 8, 2015

introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Truth in Lending Act to prohibit private educational lenders from requiring accelerated repayment of private education loans upon the death or disability of a cosigner of the loan.

1.

Short title

This Act may be cited as the Student Debt Repayment Fairness Act of 2015.

2.

Prohibition on requiring full repayment of private education loan upon death or disability of cosigner

Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is amended by adding at the end the following new subsection:

(g)

Prohibition on accelerating repayment upon death or disability of a cosigner on a private education loan

(1)

In general

If a cosigner who is jointly liable on a private education loan is unable to fulfill any obligations with respect to the loan by reason of death or disability, the private educational lender may not accelerate the repayment terms of any outstanding obligation if the borrower is in good standing (as determined by the Bureau) with respect to the loan.

(2)

Disability defined

In this subsection, the term disability means a permanent and total disability, as determined in accordance with the regulations of the Secretary of Education under section 437(a) of the Higher Education Act of 1965 (20 U.S.C. 1087(a)), or a determination by the Secretary of Veterans Affairs that the individual is unemployable due to a service-connected condition.

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