,,ii #aacth ,,congress #ast ,session ,s4 #ahjc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #aa1 #bjac,mr4 ,durbin 7for himself1 ,ms4 ,warren1 ,mrs4 ,boxer1 and ,mr4 ,reed7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to require certain protections for student loan borrowers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,loan ,borrower ,bill of ,rights4 #b4 ,truth in ,lending ,act amendments ,the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afja et seq47 is amended-- 7#a7 in section #abh 7#ae ,u4,s4,c4 #afch7-- 7,a7 in subsection 7e7-- 7i7 in paragraph 7#a77,o71 by striking paragraph 7#f7 and inserting paragraph 7#i72 7ii7 in paragraph 7#b77,l71 by striking paragraph 7#f7 and inserting paragraph 7#i72 7iii7 in paragraph 7#d77;,c71 by striking paragraph 7#g7 and inserting paragraph 7#aj72 7iv7 by redesignating paragraphs 7#e7 through 7#aa7 as paragraphs 7#h7 through 7#ad71 respectively2 7v7 by inserting after paragraph 7#d7 the following3 7#e7 ,disclosures before first fully amortized payment ,not fewer than #cj days and not more than #aej days before the first fully amortized payment on a private education loan is due from the borrower1 the private educational lender shall disclose to the borrower1 clearly and conspicuously-- 7,a7 the information described in-- 7i7 paragraph 7#b77;,a7 7adjusted1 as necessary1 for the rate of interest in effect on the date the first fully amortized payment on a private education loan is due72 7ii7 subparagraphs 7,b7 through 7,g7 of paragraph 7#b72 7iii7 paragraph 7#b77;,h7 7adjusted1 as necessary1 for the rate of interest in effect on the date the first fully amortized payment on a private education loan is due72 7iv7 paragraph 7#b77,k72 and 7v7 subparagraphs 7,o7 and 7,p7 of paragraph 7#b72 7,b7 the scheduled date upon which the first fully amortized payment is due2 7,c7 the name of the lender and servicer1 and the address to which communications and payments should be sent including a telephone number and website where the borrower may obtain additional information2 7,d7 a description of alternative repayment plans1 including loan consolidation or refinancing1 and servicemember or veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 or other ,federal or ,state law related to private education loans2 and 7,e7 a statement that a ,servicemember and ,veterans ,liaison designated under paragraph 7#ae77;,f7 is available to answer inquiries about servicemember and veteran benefits related to private education loans1 including the toll-free telephone number to contact the ,liaison pursuant to paragraph 7#ae77;,f74 7#f7 ,disclosures when borrower is #cj days delinquent ,not fewer than #e days after a borrower becomes #cj days delinquent on a private education loan1 the private educational lender shall disclose to the borrower1 clearly and conspicuously-- 7,a7 the date on which the loan will be charged-off 7as defined in paragraph 7#ae77;,a77 or assigned to collections1 including the consequences of such charge-off or assignment to collections1 if no payment is made2 7,b7 the minimum payment that the borrower must make to avoid the loan being charged off 7as defined in paragraph 7#ae77;,a77 or assigned to collection1 and the minimum payment that the borrower must make to bring the loan current2 7,c7 a statement informing the borrower that a payment of less than the minimum payment described in subparagraph 7,b7 could result in the loan being charged off 7as defined in paragraph 7#ae77;,a77 or assigned to collection2 and 7,d7 a statement that a ,servicemember and ,veterans ,liaison designated under paragraph 7#ae77;,f7 is available to answer inquiries about servicemember and veteran benefits related to private education loans1 including the toll-free telephone number to contact the ,liaison pursuant to paragraph 7#ae77;,f74 7#g7 ,disclosures when borrower is having difficulty making payment or is #fj days delinquent 7,a7 ,in general ,not fewer than #e days after a borrower notifies a private educational lender that the borrower is having difficulty making payment or a borrower becomes #fj days delinquent on a private education loan1 the private educational lender shall-- 7i7 complete a full review of the borrower's private education loan and make a reasonable effort to obtain the information necessary to determine-- 7,i7 if the borrower is eligible for an alternative repayment plan1 including loan consolidation or refinancing2 and 7,,ii7 if the borrower is eligible for servicemember or veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 or other ,federal or ,state law related to private education loans2 7ii7 provide the borrower1 in writing1 in simple and understandable terms1 information about alternative repayment plans and benefits for which the borrower is eligible1 including all terms1 conditions1 and fees or costs associated with such repayment plan1 pursuant to paragraph 7#h77;,d72 7iii7 allow the borrower not less than #cj days to apply for an alternative repayment plan or benefits1 if eligible2 and 7iv7 notify the borrower that a ,servicemember and ,veterans ,liaison designated under paragraph 7#ae77;,f7 is available to answer inquiries about servicemember and veteran benefits related to private education loans1 including the toll-free telephone number to contact the ,liaison pursuant to paragraph 7#ae77;,f74 7,b7 ,forbearance or deferment ,if a borrower notifies the private educational lender that a long-term alternative repayment plan is not needed1 the private educational lender may comply with this paragraph by providing the borrower1 in writing1 in simple and understandable terms1 information about forbearance or deferment options1 including all terms1 conditions1 and fees or costs associated with such options pursuant to paragraph 7#h77;,d74 7,c7 ,notification process 7i7 ,in general ,each private educational lender shall establish a process1 in accordance subparagraph 7,a71 for a borrower to notify the lender that-- 7,i7 the borrower is having difficulty making payments on a private education loan2 and 7,,ii7 a long-term alternative repayment plan is not needed4 7ii7 ,consumer financial protection bureau requirements ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education1 shall promulgate rules establishing minimum standards for private educational lenders in carrying out the requirements of this paragraph and a model form for borrowers to notify private educational lenders of the information under this paragraph4 2 7vi7 in paragraph 7#h71 as redesignated by clause 7iv71 by adding at the end the following3 7,d7 ,model disclosure form for alternative repayment plans1 forbearance1 and deferment options ,not later than #b years after the date of enactment of the ,student ,loan ,borrower ,bill of ,rights1 the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education1 shall develop and issue model forms to allow borrowers to compare alternative repayment plans1 forbearance1 and deferment options with the borrower's existing repayment plan with respect to a private education loan4 ,such forms shall include the following3 7i7 ,the total amount to be paid over the life of the loan4 7ii7 ,the total amount in interest to be paid over the life of the loan4 7iii7 ,the monthly payment amount4 7iv7 ,the expected pay-off date4 7v7 ,related fees and costs4 7vi7 ,eligibility requirements1 and how the borrower can apply for the alternative repayment plan1 forbearance1 or deferment option4 7vii7 ,any consequences1 including the loss of eligibility for alternative repayment plans1 forbearance1 or deferment options4 2 7vii7 in paragraph 7#aa71 as redesignated by clause 7iv71 by striking paragraph 7#g7 and inserting paragraph 7#aj72 7viii7 in paragraph 7#ad71 as redesignated by clause 7iv71 by striking paragraph 7#e7 and inserting paragraph 7#h72 and 7ix7 by adding at the end the following3 7#ae7 ,student loan borrower bill of rights 7,a7 ,definitions ,in this paragraph3 7i7 ,borrower ,the term borrower means the person to whom a private education loan is extended4 7ii7 ,charge off ,the term charge off means charge to profit and loss1 or subject to any similar action4 7iii7 ,private education loan ,the term private education loan has the meaning given the term in section #adj7;a74 7iv7 ,servicer ,the term servicer means the person responsible for the servicing of a private education loan1 including any agent of such person or the person who makes1 owns1 or holds a loan if such person also services the loan4 7v7 ,servicing ,the term servicing means-- 7,i7 receiving any scheduled periodic payments from a borrower pursuant to the terms of a private education loan2 7,,ii7 making the payments of principal and interest and such other payments with respect to the amounts received from the borrower1 as may be required pursuant to the terms of the loan2 and 7,,iii7 performing other administrative services with respect to the loan4 7,b7 ,sale1 transfer1 or assignment ,if the sale1 other transfer1 or assignment of a private 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-- 7i7 the transferor shall-- 7,i7 notify the borrower1 in writing1 in simple and understandable terms1 not fewer than #de days before transferring a legally enforceable right to receive payment from the borrower on such loan1 of-- 7aa7 the sale or other transfer2 7bb7 the identity of the transferee2 7cc7 the name and address of the party to whom subsequent payments or communications must be sent2 7dd7 the telephone numbers and websites of both the transferor and the transferee2 7ee7 the effective date of the sale1 transfer1 or assignment2 7ff7 the date on which the transferor servicer will stop accepting payment2 and 7gg7 the date on which the transferee servicer will begin accepting payment2 and 7,,ii7 forward any payment from a borrower with respect to such private education loan to the transferee servicer1 immediately upon receiving such payment1 during the #fj-;day period beginning on the date on which the transferor servicer stops accepting payment of such private education loan2 and 7ii7 the transferee shall-- 7,i7 notify the borrower1 in writing1 in simple and understandable terms1 not fewer than #de days before acquiring a legally enforceable right to receive payment from the borrower on such loan1 of-- 7aa7 the sale or other transfer2 7bb7 the identity of the transferee2 7cc7 the name and address of the party to whom subsequent payments or communications must be sent2 7dd7 the telephone numbers and websites of both the transferor and the transferee2 7ee7 the effective date of the sale1 transfer1 or assignment2 7ff7 the date on which the transferor will stop accepting payment2 and 7gg7 the date on which the transferee will begin accepting payment2 7,,ii7 accept as on-time and may not impose any late fee or finance charge for any payment from a borrower with respect to such private education loan that is forwarded from the transferor servicer during the #fj-;day period beginning on the date on which the transferor servicer stops accepting payment1 if the transferor servicer receives such payment on or before the applicable due date1 including any grace period2 7,,iii7 provide borrowers a simple1 online process for transferring existing electronic fund transfer authority2 and 7,,iv7 honor any promotion or benefit offered to the borrower or advertised by the previous owner or transferor servicer of such private education loan4 7,c7 ,material change in mailing address or procedure for handling payments ,if a servicer makes a change in the mailing address1 office1 or procedures for handling payments with respect to any private education loan1 and such change causes a delay in the crediting of the account of the borrower made during the #fj-;day period following the date on which such change took effect1 the servicer may not impose any late fee or finance charge for a late payment on such private education loan4 7,d7 ,application of payments 7i7 ,in general ,unless otherwise directed by the borrower1 upon receipt of a payment1 the servicer shall apply amounts first to the interest and fees owed on the payment due date1 and then to the principal balance of the private education loan bearing the highest annual percentage rate1 and then to each successive interest and fees and then principal balance bearing the next highest annual percentage rate1 until the payment is exhausted4 ,a borrower may instruct or expressly authorize the servicer to apply payments in a different manner4 7ii7 ,application of excess amounts ,unless otherwise directed by the borrower1 upon receipt of a payment1 the servicer shall apply amounts in excess of the minimum payment amount first to the interest and fees owed on the payment due date1 and then to the principal balance of the private education loan balance bearing the highest annual percentage rate1 and then to each successive interest and fees and principal balance bearing the next highest annual percentage rate1 until the payment is exhausted4 ,a borrower may instruct or expressly authorize the servicer to apply such excess payments in a different manner4 7iii7 ,apply payment on date received ,unless otherwise directed by the borrower1 a servicer shall apply payments to a borrower's account on the date the payment is received4 7iv7 ,promulgation of rules ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education1 may promulgate rules for the application of payments that-- 7,i7 minimizes the amount of fees and interest incurred by the borrower and the total loan amount paid by the borrower2 7,,ii7 minimizes delinquencies1 assignments to collection1 and charge-offs2 7,,iii7 requires servicers to apply payments on the date received2 and 7,,iv7 allows the borrower to instruct the servicer to apply payments in a manner preferred by the borrower4 7,e7 ,rehabilitation of loans ,if a borrower successfully and voluntarily makes #i payments within #bj days of the due date during #aj consecutive months of amounts owed on a private education loan1 or otherwise brings a private education loan current after the loan is charged-off1 the loan shall be considered rehabilitated1 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 history4 7,f7 ,servicemembers1 veterans1 and private education loans 7i7 ,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 veterans1 and is specially trained on servicemember and veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 and other ,federal or ,state laws related to private education loans4 7ii7 ,toll-free telephone number ,each servicer shall maintain a toll-free telephone number that shall-- 7,i7 connect directly to the servicemember and veterans liaison designated under clause 7i72 and 7,,ii7 be made available on the primary internet website of the servicer and on monthly billing statements4 7iii7 ,prohibition on charge offs ,a lender or servicer may not charge off or report a private education loan as delinquent1 assigned to collection 7internally or by referral to a third party71 or charged-off to a credit reporting agency if the borrower is on active duty in the ,armed ,forces 7as defined in section #aja7;d77#a7 of title #aj1 ,united ,states ,code7 serving in a combat zone 7as designated by the ,president under section #aab7;c7 of the ,internal ,revenue ,code of #aihf74 7,g7 ,borrower's loan history 7i7 ,in general ,a servicer shall make available through a secure website1 or in writing upon request1 the loan history of each borrower for each private education loan1 separately designating-- 7,i7 payment history2 7,,ii7 loan history1 including any forbearances1 deferrals1 delinquencies1 assignment to collection1 and charge offs2 7,,iii7 annual percentage rate history2 and 7,,iv7 key loan terms1 including application of payments to interest1 principal1 and fees1 origination date1 principal1 capitalized interest1 annual percentage rate1 including any cap1 loan term1 and any contractual incentives4 7ii7 ,original documentation ,a servicer shall make available to the borrower1 if requested1 at no charge1 copies of the original loan documents and the promissory note for each private education loan4 7,h7 ,error resolution ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education1 shall promulgate rules requiring servicers to establish error resolution procedures to allow borrowers to inquire about errors related to their private education loans and obtain timely resolution of such errors4 7,i7 ,additional servicing standards ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education1 may establish additional servicing standards to reduce delinquencies1 assignment to collections1 and charge-offs1 and to ensure borrowers understand their rights and obligations related to their private education loans4 7,j7 ,arbitration 7i7 ,waiver of rights and remedies ,any rights and remedies available to borrowers against servicers may not be waived by any agreement1 policy1 or form1 including by a predispute arbitration agreement4 7ii7 ,predispute arbitration agreements ,no predispute arbitration agreement shall be valid or enforceable by a servicer1 including as a third-party beneficiary or by estoppel1 if the agreement requires arbitration of a dispute with respect to a private education loan4 ,this subparagraph applies to predispute arbitration agreements entered into before the date of enactment of the ,student ,loan ,borrower ,bill of ,rights1 as well as on and after such date of enactment1 if the violation that is the subject of the dispute occurred on or after such date of enactment4 7,k7 ,enforcement ,the provisions of this paragraph shall be enforced by the agencies specified in subsections 7a7 through 7d7 of section #ajh1 in the manner set forth in that section or under any other applicable authorities available to such agencies by law4 7,l7 ,preemption ,nothing in this paragraph may be construed to preempt any provision of ,state law regarding private education loans where the ,state law provides stronger consumer protections4 7,m7 ,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 #acj and such servicer shall be subject to the applicable liability provisions under such section4 2 and 7,b7 by adding at the end the following3 7g7 ,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 borrower4 2 and 7#b7 in section #acj7;a7-- 7,a7 in paragraph 7#c71 by striking #abh7;e77#g7 and inserting #abh7;e77#aj72 and 7,b7 in the flush matter at the end1 by striking or paragraph 7#d77;,c71 7#f71 7#g71 or 7#h7 of section #abh7;e71 and inserting or paragraph 7#d77;,c71 7#i71 7#aj71 or 7#aa7 of section #abh7;e714 #c4 ,student loan borrower bill of rights ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended-- 7#a7 in part ,g of title ,,iv 7#bj ,u4,s4,c4 #ajhh et seq47 by adding at the end the following3 #dic;,e4 ,student loan borrower bill of rights 7a7 ,definitions ,in this section3 7#a7 ,servicer ,the term servicer means the person responsible for the servicing of any student loan1 including any agent of such person or the person who makes1 owns1 or holds a loan if such person also services the loan4 7#b7 ,servicing ,the term servicing means-- 7,a7 receiving any scheduled periodic payments from a borrower pursuant to the terms of a student loan2 7,b7 making the payments of principal and interest and such other payments with respect to the amounts received from the borrower1 as may be required pursuant to the terms of the loan2 and 7,c7 performing other administrative services with respect to the loan4 7#c7 ,student loan ,the term student loan means a loan made1 insured1 or guaranteed under this title4 7b7 ,transfer of lender or servicer ,if the sale1 other transfer1 or assignment of a student 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-- 7#a7 the transferor shall-- 7,a7 notify the borrower in writing not fewer than #de days before transferring a legally enforceable right to receive payment from the borrower on such loan1 of-- 7i7 the sale1 transfer1 or assignment2 7ii7 the identity of the transferee2 7iii7 the name and address of the party to whom subsequent payments or communications must be sent2 7iv7 the telephone numbers and websites of both the transferor and the transferee2 7v7 the effective date of the sale1 transfer1 or assignment2 7vi7 the date on which the current servicer will stop accepting payments2 and 7vii7 the date on which the transferee servicer will begin accepting payment2 and 7,b7 forward to the transferee servicer any payment with respect to such student loan1 immediately upon receiving such payment1 from a borrower during the #fj-;day period beginning on the date on which the transferor servicer stops accepting payment for such student loan2 and 7#b7 the transferee shall-- 7,a7 notify the borrower in writing not fewer than #de days before transferring a legally enforceable right to receive payment from the borrower on such loan1 of-- 7i7 the sale1 transfer1 or assignment2 7ii7 the identity of the transferor2 7iii7 the name and address of the party to whom subsequent payments or communications must be sent2 7iv7 the telephone numbers and websites of both the transferor and the transferee2 7v7 the effective date of the sale1 transfer1 or assignment2 7vi7 the date on which the current servicer will stop accepting payments2 and 7vii7 the date on which the transferee servicer will begin accepting payment2 7,b7 accept as on-time and may not impose any late fee or finance charge with respect to such student loan for any payment forwarded from the transferor servicer during the #fj-;day period beginning on the date on which the transferor servicer stops accepting payment1 if the transferor servicer received such payment from the borrower on or before the applicable due date1 including any grace period2 7,c7 provide borrowers a simple1 online process for transferring existing electronic fund transfer authority2 and 7,d7 honor any promotion or benefit offered to the borrower or advertised by the previous owner or transferor servicer of such student loan4 7c7 ,material change in mailing address or procedure for handling payments ,if a servicer makes a change in the mailing address1 office1 or procedures for handling payments with respect to any student loan1 and such change causes a delay in the crediting of the account of the borrower made during the #fj-;day period following the date on which such change took effect1 the servicer may not impose any late fee or finance charge for a late payment on such student loan4 7d7 ,eligibility for discharge ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary1 shall promulgate rules requiring lenders and servicers to-- 7#a7 identify and contact borrowers who may be eligible for student loan discharge by the ,secretary2 7#b7 provide the borrower1 in writing1 in simple and understandable terms1 information about obtaining such discharge2 and 7#c7 create a streamlined process for eligible borrowers to apply for and receive such discharge4 7e7 ,application of payments 7#a7 ,in general ,notwithstanding any other provision of this ,act1 the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary1 shall issue rules for the application of student loan payments that-- 7,a7 minimizes the amount of fees and interest incurred by the borrower and the total loan amount paid by the borrower2 7,b7 minimizes delinquencies1 assignments to collection1 and charge offs2 7,c7 requires servicers to apply payments on the date received2 and 7,d7 allows the borrower to direct the servicer to apply payments in a manner preferred by the borrower4 7#b7 ,method that best benefits borrower ,in issuing the rules under paragraph 7#a71 the ,director of the ,consumer ,financial ,protection ,bureau shall choose the application method that best benefits the borrower and is compatible with existing repayment options4 7f7 ,servicemembers1 veterans1 and student loans 7#a7 ,servicemember and veterans liaison ,each servicer of a student loan shall designate an employee to act as the servicemember and veterans liaison who is responsible for answering inquiries from servicemembers and veterans1 and is specially trained on servicemember and veteran benefits and options under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 and other ,federal or ,state laws related to student loans4 7#b7 ,toll-free telephone number ,each servicer of a student loan shall maintain a toll-free telephone number for the servicemember and veterans liaison designated under paragraph 7#a71 which shall be made available on the primary ,internet website of the servicer and on monthly billing statements4 7#c7 ,prohibition on default ,notwithstanding any other provision of this ,act1 a servicer may not report a student loan as delinquent1 assigned to collection 7internally or by referral to a third party71 charged off1 or in default1 to a credit reporting agency if the borrower is on active duty in the ,armed ,forces 7as defined in section #aja7;d77#a7 of title #aj1 ,united ,states ,code7 serving in a combat zone 7as designated by the ,president under section #aab7;c7 of the ,internal ,revenue ,code of #aihf74 7#d7 ,additional liaisons ,the ,secretary shall determine additional entities with whom borrowers interact1 including guaranty agencies1 that shall designate an employee to act as the servicemember and veterans liaison who is responsible for answering inquiries from servicemembers and veterans1 and is specially trained on servicemember and veteran benefits and options under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 and other ,federal or ,state laws related to student loans4 7g7 ,borrower's loan history 7#a7 ,in general ,a servicer of a student loan shall make available through a secure website1 or in writing upon request1 the loan history of each borrower for each student loan1 separately designating-- 7,a7 payment history2 7,b7 loan history1 including any forbearances1 deferrals1 delinquencies1 and defaults2 7,c7 annual percentage rate history2 and 7,d7 key loan terms1 including application of payments to interest1 principal1 and fees1 origination date1 principal1 capitalized interest1 annual percentage rate1 including any cap1 loan term1 and any contractual incentives4 7#b7 ,original documentation ,a servicer shall make available to the borrower1 if requested1 at no charge1 copies of the original loan documents and the promissory note for each student loan4 7h7 ,error resolution ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary1 shall promulgate rules requiring servicers to establish error resolution procedures to allow borrowers to inquire about errors related to their student loans and obtain timely resolution of such errors4 7i7 ,additional servicing standards ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary1 may establish additional servicing standards to reduce delinquencies1 assignments to collection1 and defaults1 and to ensure borrowers understand their rights and obligations related to their student loans4 7j7 ,promulgation of rules ,the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary1 shall promulgate rules implementing this section4 2 7#b7 in section #dcc 7#bj ,u4,s4,c4 #ajhc7-- 7,a7 in subsection 7b7-- 7i7 in paragraph 7#ab71 by striking and after the semicolon2 7ii7 in paragraph 7#ac71 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7#ad7 a statement that-- 7,a7 the borrower may be entitled to servicemember and veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 and other ,federal or ,state laws2 and 7,b7 a ,servicemember and ,veterans ,liaison designated under section #dic;,e7f7 is available to answer inquiries about servicemember and veteran benefits1 including the toll-free telephone number to contact the ,liaison pursuant to section #dic;,e7f74 2 and 7,b7 in subsection 7e7-- 7i7 in paragraph 7#b71 by adding at the end the following3 7,d7 ,a statement that-- 7i7 the borrower may be entitled to servicemember and veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 and other ,federal or ,state laws2 and 7ii7 a ,servicemember and ,veterans ,liaison designated under section #dic;,e7f7 is available to answer inquiries about servicemember and veteran benefits1 including the toll-free telephone number to contact the ,liaison pursuant to section #dic;,e7f74 2 7ii7 in paragraph 7#c71 by adding at the end the following3 7,f7 ,a statement that-- 7i7 the borrower may be entitled to servicemember and veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 and other ,federal or ,state laws2 and 7ii7 a ,servicemember and ,veterans ,liaison designated under section #dic;,e7f7 is available to answer inquiries about servicemember and veteran benefits1 including the toll-free telephone number to contact the ,liaison pursuant to section #dic;,e7f74 2 and 7iii7 by adding at the end the following3 7#d7 ,notification of repayment options and alternatives to default ,the ,secretary shall require eligible lenders to1 not later than #a year after the date of enactment of the ,student ,loan ,borrower ,bill of ,rights-- 7,a7 notify borrowers1 in writing1 in simple and understandable terms1 about alternative repayment options1 including income-based repayment1 income contingent repayment1 consolidation1 and forgiveness options1 as well as servicemember or veteran benefits under the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 or other ,federal or ,state laws2 7,b7 provide borrowers1 in writing1 in simple and understandable terms1 information about alternative repayment plans1 including all terms1 conditions1 and fees or costs associated with such repayment plans in a format that allows the borrower to compare the current repayment plan with alternative repayment plans2 and 7,c7 offer to enroll such borrowers in alternative repayment plans1 if eligible4 2 and 7#c7 in section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d771 by adding at the end the following3 7#f7 ,notification of repayment options ,the ,secretary shall carry out1 not later than #a year after the date of enactment of the ,student ,loan ,borrower ,bill of ,rights1 the activities described in subparagraphs 7,a71 7,b71 and 7,c7 of section #dcc7;e77#d7 with respect to loans made under this part4 4 #d4 ,know before you owe 7a7 ,amendments to the ,truth in ,lending ,act 7#a7 ,in general ,section #abh7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e771 as amended by section #b1 is further amended-- 7,a7 by striking paragraph 7#c7 and inserting the following3 7#c7 ,institutional certification required 7,a7 ,in ,general ,except as provided in subparagraph 7,b71 before a creditor may issue any funds with respect to an extension of credit described in this subsection1 the creditor shall obtain from the relevant institution of higher education where such loan is to be used for a student1 such institution's certification of-- 7i7 the enrollment status of the student2 7ii7 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 #aife2 and 7iii7 the difference between-- 7,i7 such cost of attendance2 and 7,,ii7 the student's estimated financial assistance1 including such assistance received under title ,,iv of the ,higher ,education ,act of #aife and other financial assistance known to the institution1 as applicable4 7,b7 ,exception ,notwithstanding subparagraph 7,a71 a creditor may issue funds1 not to exceed the amount described in subparagraph 7,a77iii71 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 #ae business days of the creditor's request for such certification-- 7i7 notification of the institution's refusal to certify the request2 or 7ii7 notification that the institution has received the request for certification and will need additional time to comply with the certification request4 7,c7 ,loans ,disbursed ,without ,certification ,if a creditor issues funds without obtaining a certification1 as described in subparagraph 7,b71 such creditor shall report the issuance of such funds in a manner determined by the ,director of the ,consumer ,financial ,protection ,bureau4 2 and 7,b7 by adding at the end the following3 7#af7 ,provision of information 7,a7 ,provision of ,information to ,students 7i7 ,loan ,statement ,a creditor that issues any funds with respect to an extension of credit described in this subsection shall send loan statements1 where such loan is to be used for a student1 to borrowers of such funds not less than once every #c months during the time that such student is enrolled at an institution of higher education4 7ii7 ,contents of ,loan ,statement ,each statement described in clause 7i7 shall-- 7,i7 report the borrower's total remaining debt to the creditor1 including accrued but unpaid interest and capitalized interest2 7,,ii7 report any debt increases since the last statement2 and 7,,iii7 list the current interest rate for each loan4 7,b7 ,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 subsection1 the creditor shall notify the relevant institution of higher education1 in writing1 of the amount of the extension of credit and the student on whose behalf credit is extended4 ,the form of such written notification shall be subject to the regulations of the ,consumer ,financial ,protection ,bureau4 7,c7 ,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 ,consumer ,financial ,protection ,bureau containing the required information about private student loans to be determined by the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education4 4 7#b7 ,definition of ,private ,education ,loan ,section #adj7;a77#g77;,a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a77#g77;,a77 is amended-- 7,a7 by redesignating clause 7ii7 as clause 7iii72 7,b7 in clause 7i71 by striking and after the semicolon2 and 7,c7 by adding after clause 7i7 the following3 7ii7 is not made1 insured1 or guaranteed under title ,,vii or title ,,viii of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bib et seq4 and #bif et seq472 and 4 7#c7 ,regulations ,not later than #cfe days after the date of enactment of this ,act1 the ,director of the ,consumer ,financial ,protection ,bureau shall issue regulations in final form to implement paragraphs 7#c7 and 7#af7 of section #abh7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e771 as amended by paragraph 7#a74 ,such regulations shall become effective not later than #f months after their date of issuance4 7b7 ,amendments to the ,higher ,education ,act of #aife 7#a7 ,program participation agreements ,section #dhg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77 is amended by striking paragraph 7#bh7 and inserting the following3 7#bh7 7,a7 ,upon the request of a private educational lender1 acting in connection with an application initiated by a borrower for a private education loan in accordance with section #abh7;e77#c7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e77#c771 the institution shall within #ae days of receipt of a certification request-- 7i7 provide such certification to such private educational lender-- 7,i7 that the student who initiated the application for the private education loan1 or on whose behalf the application was initiated1 is enrolled or is scheduled to enroll at the institution2 7,,ii7 of such student's cost of attendance at the institution as determined under part ,f of this title2 and 7,,iii7 of the difference between-- 7aa7 the cost of attendance at the institution2 and 7bb7 the student's estimated financial assistance received under this title and other assistance known to the institution1 as applicable2 7ii7 notify the creditor that the institution has received the request for certification and will need additional time to comply with the certification request2 or 7iii7 provide notice to the private educational lender of the institution's refusal to certify the private education loan under subparagraph 7,d74 7,b7 ,with respect to a certification request described in subparagraph 7,a71 and prior to providing such certification under subparagraph 7,a77i7 or providing notice of the refusal to provide certification under subparagraph 7,a77iii71 the institution shall-- 7i7 determine whether the student who initiated the application for the private education loan1 or on whose behalf the application was initiated1 has applied for and exhausted the ,federal financial assistance available to such student under this title and inform the student accordingly2 and 7ii7 provide the borrower whose loan application has prompted the certification request by a private education lender1 as described in subparagraph 7,a77i71 with the following information and disclosures3 7,i7 ,the availability of1 and the borrower's potential eligibility for1 ,federal financial assistance under this title1 including disclosing the terms1 conditions1 interest rates1 and repayment options and programs of ,federal student loans4 7,,ii7 ,the borrower's ability to select a private educational lender of the borrower's choice4 7,,iii7 ,the impact of a proposed private education loan on the borrower's potential eligibility for other financial assistance1 including ,federal financial assistance under this title4 7,,iv7 ,the borrower's right to accept or reject a private education loan within the #cj-;day period following a private educational lender's approval of a borrower's application and about a borrower's #c-;day right to cancel period4 7,c7 ,for purposes of this paragraph1 the terms private educational lender and #8private education loan' have the meanings given such terms in section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej74 7,d7 7i7 ,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-- 7,i7 the borrower alternative repayment plans1 including loan consolidation or refinancing2 and 7,,ii7 that the liability to repay the loan shall be cancelled upon the death or disability of the borrower or co-borrower4 7ii7 ,in this paragraph1 the term disability means a permanent and total disability1 as determined in accordance with the regulations of the ,secretary of ,education1 or a determination by the ,secretary of ,veterans ,affairs that the borrower is unemployable due to a service connected-disability4 4 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall take effect on the effective date of the regulations described in subsection 7a77#c74 7#c7 ,preferred lender arrangement ,section #aea7h77;,a77ii7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai7h77;,a77ii77 is amended by inserting certifying1 after promoting14 7c7 ,report ,not later than #bd months after the issuance of regulations under subsection 7a77#c71 the ,director of the ,consumer ,financial ,protection ,bureau 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 #abh7;e77#c7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e771 as amended by subsection 7a71 and section #dhg7;a77#bh7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a771 as amended by subsection 7b74 ,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 debt4 #e4 ,report on student loan servicers ,not later than #a year after the date of enactment of this ,act1 the ,director of the ,consumer ,financial ,protection ,bureau1 in consultation with the ,secretary of ,education1 shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate1 the ,committee on ,financial ,services of the ,house of ,representatives1 and the ,committee on ,education and the ,workforce of the ,house of ,representatives on private and ,federal student loan servicers1 including-- 7#a7 any legislative recommendations to improve student loan servicing standards2 and 7#b7 information on proactive early intervention methods by servicers to help distressed student loan borrowers enroll in any eligible repayment plans4