IN THE SENATE OF THE UNITED STATES
July 29, 2021
Ms. Smith (for herself and Mr. Van Hollen) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
To adjust the applicability of certain amendments to the Truth in Lending Act, and for other purposes.
This Act may be cited as the
Ryan Frascone Memorial Student Loan Relief Act of 2021.
Applicability of certain amendments to the Truth in Lending Act
Section 601(b) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (15 U.S.C. 1650 note) is amended to read as follows:
The amendments made by subsection (a) shall apply to private education loan agreements entered into before, on, or after the date of enactment of this Act.
The amendment made by paragraph (1) shall take effect as if included in section 601 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115–174).
Treasury loan purchase program
In this subsection, the terms
private education loan have the meanings given those terms, respectively, in section 140 of the Truth in Lending Act (15 U.S.C. 1650).
Establishment of purchase program
The Secretary of the Treasury shall establish a program under which the Secretary shall purchase and retire outstanding private education loans—
where the borrower on such loan is deceased;
where there remains a cosigner on the loan;
that were entered into before the date that is 180 days after the date of enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115–174); and
only upon an application from a holder of such loan pursuant to paragraph (3) that demonstrates the holder has suffered financial injury as a result of the amendment made by subsection (a).
The holder of a loan described under paragraph (2) may apply to the Secretary of the Treasury to have the Secretary purchase and retire such loan by submitting an application in the form and manner that the Secretary may require.
Authorization of appropriations
There is authorized to be appropriated to the Secretary of the Treasury $5,000,000 to carry out this subsection.