,i #aacth ,,congress #b;d ,session ,h4 ,r4 #chib ,,in ,,the ,,house ,,of ,,representatives ,january #ae1 #bjad,ms4 ,wilson of ,florida 7for herself1 ,ms4 ,brown of ,florida1 ,mr4 ,rush1 and ,ms4 ,norton7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce1 and in addition to the ,committees on ,ways and ,means1 the ,judiciary1 and ,oversight and ,government ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish student loan borrowers' rights to basic consumer protections1 reasonable and flexible repayment options1 access to earned credentials1 and effective loan cancellation in exchange for public service1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,loan ,borrowers' ,bill of ,rights ,act of #bjac4 ,i ,borrowers' ,right to ,basic ,consumer ,protections #aja4 ,dischargeability of student loans in bankruptcy cases ,section #ebc7;a7 of title #aa of the ,united ,states ,code is amended-- 7#a7 by striking paragraph 7#h72 and 7#b7 by redesignating paragraphs 7#i7 through 7#ai7 as paragraphs 7#h7 through 7#ah74 #ajb4 ,reinstatement of the #f-year ,statute of ,limitations for student loans ,subsection 7a7 of section #dhd;,a of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia;a7a77 is amended to read as follows3 7a7 ,statute of limitations ,notwithstanding any ,federal or ,state statutory1 regulatory1 or administrative limitation on the period within which debts may be enforced-- 7#a7 an institution that receives funds under this title may file a suit or initiate or take another action for collection of a refund due from a student on a grant made1 or work assistance awarded1 under this title1 during the #f-year period beginning on the day after the refund first became due 7exclusive of period during which the ,state statute of limitations otherwise applicable to a suit under this paragraph would be tolled under ,state law72 7#b7 a guaranty agency that has an agreement with the ,secretary under section #dbh7;c7 may file a suit or initiate or take another action for collection of the amount due from a borrower on a loan made under part ,b during the #f-year period beginning on the day after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower 7exclusive of period during which the ,state statute of limitations otherwise applicable to a suit under this paragraph would be tolled under ,state law72 7#c7 an institution that has an agreement with the ,secretary pursuant to section #dhg may file a suit or initiate or take another action for collection of the amount due from a borrower on a loan made under part ,d or ,e after the default of the borrower on such loan during the #f-year period beginning on the day after the date of the default of the borrower with respect to such amount 7exclusive of period during which the ,state statute of limitations otherwise applicable to a suit under this paragraph would be tolled under ,state law72 or 7#d7 the ,secretary1 the ,attorney ,general1 or the administrative head of another ,federal agency1 as the case may be1 may file a suit or initiate or take another action for collection of a refund due from a student on a grant made under this title1 or for the repayment of the amount due from a borrower on a loan made under this title that has been assigned to the ,secretary under this title1 during the #f-year period beginning on the day after the refund or the amount first became due4 4 #ajc4 ,prohibition of collection of student loans through certain offsets or through wage garnishment 7a7 ,prohibition on offset of social security benefits ,section #cgaf7;c77#c77;,a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in clause 7i71 by striking except as provided in clause 7ii7 and inserting except as provided in clauses 7ii7 and 7iii72 and 7#b7 by adding at the end the following new clause3 7iii7 ,notwithstanding clause 7i71 any payments due to an individual under ,federal benefits programs cited under clause 7i7 shall not be subject to offset under this subsection if the offset is for payments certified by the ,department of ,education under a program administered by the ,secretary of ,education under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq474 4 7b7 ,prohibition on offset of tax refund ,section #cgbj;,a7a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking ,any ,federal agency and inserting 7#a7 ,except as provided in paragraph 7#b71 any ,federal agency2 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,any past-due legally enforceable debt owed by an individual to the ,department of ,education under a program administered by the ,secretary of ,education under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 shall not be subject to notification under paragraph 7#a71 and any refund of ,federal taxes paid by the individual shall not be subject to reduction under subsection 7c7 for such debt4 4 7c7 ,prohibition on wage garnishment ,section #cgbj;,d7a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking ,notwithstanding and inserting3 7#a7 ,except as provided in paragraph 7#b7 and notwithstanding2 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,any delinquent nontax debt owed by an individual to the ,department of ,education under a program administered by the ,secretary of ,education under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 shall not be subject to collection under this section through garnishment of disposable pay of the individual4 4 ,,ii ,borrower's ,right to ,reasonable and ,flexible ,repayment ,options #bja4 ,exclusion from gross income for discharge of student loan indebtedness 7a7 ,in general ,paragraph 7#a7 of section #ajh7;f7 of the ,internal ,revenue ,code of #aihf is amended by striking if such discharge and all that follows and inserting a period4 7b7 ,student loans ,paragraph 7#b7 of section #ajh7;f7 of such ,code is amended by striking made by-- and all that follows and inserting the following3 4 ,such term includes indebtedness used to refinance indebtedness which qualifies as a student loan under the preceding sentence44 7c7 ,conforming amendments ,section #ajh7;f7 of such ,code is amended by striking paragraphs 7#c7 and 7#d74 7d7 ,effective date ,the amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this ,act4 #bjb4 #ebi plan distribution for student loan payments 7a7 ,in general ,subparagraph 7,a7 of section #ebi7;e77#c7 is amended by striking clause 7iii7 and inserting the following new clause3 7iii7 interest or principal paid with respect to a qualified education loan 7as defined in section #bba7 with respect to a designated beneficiary4 4 7b7 ,conforming amendments 7#a7 ,section #ebi7;e77#c77;,a7 of such ,code is amended by striking the second sentence4 7#b7 ,section #gb7t77#g77;,a7 of such ,code is amended by inserting determined without regard to subparagraph 7,a77iii7 thereof after section #ebi7;e77#c74 7#c7 ,section #ecj7;b77#b77;,a77i7 of such ,code is amended by inserting determined without regard to subparagraph 7,a77iii7 thereof after section #ebi7;e77#c74 7c7 ,effective date ,the amendments made by this section shall apply to distributions made after the date of the enactment of this ,act4 #bjc4 ,inclusion of ,parent ,,plus ,loans in ,repayment ,programs 7a7 ,income contingent repayment plan ,section #dee7;d77#a77;,d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d77#a77;,d77 is amended by striking 1 except that the plan described in this subparagraph shall not be available to the borrower of a ,federal ,direct ,,plus loan made on behalf of a dependent student24 7b7 ,income-,based repayment 7#a7 ,section #dic;,c ,section #dic;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended-- 7,a7 in subsection 7a7-- 7i7 by striking this section and all that follows through hardship and inserting ,in this section1 the term partial financial hardship2 and 7ii7 by striking1 7other than an excepted ,,plus loan or excepted consolidation loan72 7,b7 in subsection 7b7-- 7i7 in paragraph 7#a71 by striking 7other than an excepted ,,plus loan or excepted consolidation loan72 and 7ii7 in paragraph 7#f77;,a71 by striking 7other than an excepted ,,plus loan or excepted consolidation loan72 and 7,c7 in subsection 7c71 by striking 7other than an excepted ,,plus loan or excepted consolidation loan714 7#b7 ,section #dee7;d77#a77;,e7 ,section #dee7;d77#a77;,e7 of such ,act 7#bj ,u4,s4,c4 #ajhg;e7d77#a77;,d77 is amended by striking 1 except that the plan described in this subparagraph shall not be available to the borrower of a ,federal ,direct ,,plus ,loan made on behalf of a dependent student or a ,federal ,direct ,consolidation ,loan1 if the proceeds of such loan were used to discharge the liability on such ,federal ,direct ,,plus ,loan or a loan under section #dbh;,b made on behalf of a dependent student4 7c7 ,pay ,as ,you ,earn ,the income-contingent repayment plan 7based on the ,president's ,pay ,as ,you ,earn repayment initiative7 implemented in parts #fgd1 #fhb1 and #fhe of title #cd1 ,code of ,federal ,regulations1 as amended by the final regulations published by the ,department of ,education in the ,federal ,register on ,november #a1 #bjab 7#gg ,fed4 ,reg4 #ffjhh et seq471 shall be available to borrowers of-- 7#a7 a ,federal ,direct ,,plus loan made on behalf of a dependent student2 and 7#b7 a ,federal ,direct ,consolidation ,loan1 the proceeds of which were used to discharge the liability on a ,federal ,direct ,,plus ,loan or a loan under section #dbh;,b made on behalf of a dependent student4 7d7 ,loan forgiveness for service in areas of national need ,section #dbh,k7a77#b7 of such ,act 7#bj ,u4,s4,c4 #ajgh-aa7;a77#b77 is amended-- 7#a7 in subparagraph 7,a71 by striking 7other than an excepted ,,plus loan or an excepted consolidation loan 7as such terms are defined in section #dic;,c7a7772 and 7#b7 in subparagraph 7,b71 by striking 7other than an excepted ,,plus loan or an excepted consolidation loan74 #bjd4 ,determination of adverse credit history ,section #dbh;,b7a77#a77;,a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgh-b7;a77#a77;,a77 is amended by striking regulations promulgated by the ,secretary and inserting section #fhe4bjj7;c7 of title #cd1 ,code of ,federal ,regulations 7as in effect on ,september #cj1 #bjaa74 ,,iii ,borrowers' right to a meaningful degree #cja4 ,prohibition on suspensions of professional licenses for loan default ,no evidence of an individual's default on the repayment of a loan made1 insured1 or guaranteed under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 may be admitted into evidence in a ,federal or ,state proceeding involving the individual's professional or vocational license4 #cjb4 ,prohibition on loss of access to transcripts for loan default ,section #dhg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77 7as amended by section #cja7 is further amended by adding at the end the following new paragraph3 7#ca7 7,a7 ,the institution will not prohibit a student from accessing the student's transcripts1 degree scrolls1 or other certifications of coursework or educational attainments at the institution because the student is in default on the repayment of a loan made1 insured1 or guaranteed under this title4 7,b7 ,for purposes of this paragraph1 the term student includes former students4 4 ,,iv ,right to effective loan cancellation for borrowers engaged in public service careers #dja4 ,extension of loan cancellation for borrowers employed in public service jobs for #e years ,section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7 is amended by adding at the end the following new paragraph3 7#e7 ,loan cancellation after #e years ,beginning fiscal year #bjad1 the ,secretary shall also cancel #ej percent of the balance of interest and principal due on any eligible ,federal ,direct ,loan not in default for borrowers employed in a public service job for #e years during the repayment of such loans-- 7,a7 by applying paragraph 7#a77;,a7-- 7i7 by substituting #fj for #abj each place it appears2 and 7ii7 by substituting ,october #a1 #bjjg for ,october #a1 #bjac2 and 7,b7 by applying paragraph 7#b71 by substituting #ej percent of the balance with the balance4 4