,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #cidh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #e1 #bjae    
,mr4 ,deut* introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,f9ancial  
,s]vices1 & 9 addition to ! ,committee  
on ,education & ! ,work=ce1 = a p]iod to
 be subsequ5tly det]m9$ by ! ,speak]1 9 
ea* case = consid]ation ( su* provisions
 z fall )9 ! jurisdiction ( ! committee 
conc]n$  ,a ,,bill  ,to am5d ! ,tru? 9  
,l5d+ ,act to include requirem5ts = !   
transf] ( s]vic+ ( po/second>y education
 loans1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,/ud5t  
,loan ,transf]s ,disclosure ,act (      
#bjae4  #b4 ,improv$ consum] protections
 = /ud5t loan s]vic+  7a7 ,9 g5]al      
,*apt] #b ( title ,i ( ! ,tru? 9 ,l5d+  
,act 7#ae ,u4,s4,c4 #afja et seq47 is   
am5d$ by add+ at ! end ! foll[+ new     
section3  #adj;,b4 ,transf] ( s]vic+ (  
po/second>y education loans  7a7        
,transf] ( s]vic+  7#a7 ,disclosure     
requir$ ,a po/second>y education l5d]   

%all disclose to ea* p]son :o applies = 
a po/second>y education loan1 at ! "t ( 
application = su* loan1 :e!r !re may be 
a transf] ( s]vic+ ( su* loan at any "t 
dur+ :i* a balance is due on su* loan4  
7#b7 ,no liability ,a po/second>y       
education l5d] %all n be liable to a    
borr[] = failure to comply ) p>agraph   
7#a7 if ! application = a po/second>y   
education loan 0 made be=e ! rules or   
regulations e/abli%$ "u subsection 7f7  
take effect4  7b7 ,notice by transf]or  
s]vic] at "t ( transf] ( s]vic+  7#a7 ,9
 g5]al ,a transf]or s]vic] %all notify !
 borr[] "u a po/second>y education loan 
( any transf] ( /ud5t loan s]vic+ = !   
po/second>y education loan4 ,su* notice 
%all be made to ! borr[]--  7,a7 n lat] 
?an #ae days be=e ! effective date (    
transf] ( ! /ud5t loan s]vic+2 or  7,b7 
n m ?an #cj days aft] ! effective date (
 transf] ( ! /ud5t loan s]vic+1 if !    
transf] ( su* s]vic+ is prec$$ by--  7i7
 t]m9ation ( ! contract = su* s]vic+ =  
cause2  7ii7 comm5cem5t ( bankruptcy    

proce$+s ( ! transf]or s]vic]2 or  7iii7
 any o!r situation 9 :i* ! ,bureau      
det]m9es t su* exception is w>rant$4    
7#b7 ,cont5ts ( notice ,! notice requir$
 "u p>agraph 7#a7 %all be made 9 writ+  
&1 if ! transf]or s]vic] has an email   
address = ! borr[]1 s5t by email1 & %all
 include--  7,a7 ! effective date ( !   
transf]2  7,b7 ! "n1 address1 website1 &
 toll-free or collect-call telephone    
numb] ( ! transf]ee s]vic]2  7,c7 a     
toll-free or collect-call telephone     
numb] = an individual employ$ by !      
transf]or s]vic]1 or ! (fice or dep>tm5t
 (1 ! transf]or s]vic] t ! borr[] may   
contact = inquiries relat+ to ! transf] 
( s]vic+2  7,d7 ! "n & toll-free or     
collect-call telephone numb] = an       
individual employ$ by ! transf]ee       
s]vic]1 or ! (fice or dep>tm5t (1 !     
transf]ee s]vic] t ! borr[] may contact 
= inquiries relat+ to ! transf] (       
s]vic+2  7,e7 ! date on :i* ! transf]or 
s]vic] w /op accept+ paym5ts relat+ to !
 po/second>y education loan to be       

transf]r$ & ! date on :i* ! transf]ee   
s]vic] w beg9 to accept su* paym5ts2    
7,f7 a /atem5t t ! transf] ( /ud5t loan 
s]vic+ ( ! po/second>y education loan   
does n affect any t]m or condition ( !  
po/second>y education loan o!r ?an t]ms 
directly relat$ to su* /ud5t loan       
s]vic+2  7,g7 a /atem5t disclos+-- 7i7  
:e!r borr[] au?orization = recurr+      
electronic funds transf]s w be transf]r$
 to ! transf]ee s]vic]2 &  7ii7 if any  
su* recurr+ electronic funds transf]s _c
 be transf]r$1 in=mation z to h[ !      
borr[] may e/abli% new recurr+          
electronic funds transf]s 9 connection )
 transf] ( s]vic+ to ! transf]ee s]vic]2
  7,h7 a /atem5t disclos+-- 7i7 !       
application ( all paym5ts & *>ges relat+
 to ! po/second>y education loan to be  
transf]r$ z ( ! effective date ( !      
transf]1 includ+--  7,i7 ! date ! la/   
paym5t ( ! borr[] 0 receiv$2  7,,ii7 !  
date ! la/ late fee1 arre>age1 or o!r   
*>ge 0 appli$2 &  7,,iii7 ! am\nt ( !   
la/ paym5t allocat$ to pr9cipal1 int]e/1

 & o!r *>ges2  7ii7 ! /atus ( su* loan z
 ( ! effective date ( ! transf]1 includ+
 :e!r ! borr[] is 9 default on ! loan2  
7iii7 :e!r any application = an         
alt]native repaym5t arrangem5t submitt$ 
by ! borr[] is p5d+2 &  7iv7 an         
itemization & explanation = all         
arre>ages claim$ to be due z ( !        
effective date ( ! transf]2  7,i7 a     
detail$ description ( any b5efit1       
alt]native repaym5t arrangem5t1 or o!r  
t]m or condition arrang$ betwe5 !       
transf]or s]vic] & ! borr[] t is n      
includ$ 9 ! t]ms ( ! loan agreem5t2     
7,j7 a detail$ description ( any item "u
 subp>agraph 7,h7 t w n apply ^u        
transf]1 includ+ an explanation ( :y su*
 item w n apply2 &  7,k7 in=mation on h[
 to file a compla9t aga9/ ! transf]or   
s]vic] ) ! ,bureau4  7#c7 ,notice by    
transf]ee s]vic] at "t ( transf] (      
s]vic+  7,a7 ,9 g5]al ,a transf]ee      
s]vic] %all notify ! borr[] "u a        
po/second>y education loan1 9 writ+1 (  
any transf] ( /ud5t loan s]vic+ ( a     

po/second>y education loan4 ,su* notice 
%all be made to ! borr[]--  7i7 n lat]  
?an #ae days be=e ! effective date (    
transf] ( ! /ud5t loan s]vic+2 or  7ii7 
n m ?an #cj days aft] ! effective date (
 transf] ( ! /ud5t loan s]vic+1 if !    
transf] ( su* s]vic+ is prec$$ by--     
7,i7 t]m9ation ( ! contract = su* s]vic+
 = cause2  7,,ii7 comm5cem5t (          
bankruptcy proce$+s ( ! transf]or       
s]vic]2 or  7,,iii7 any o!r situation 9 
:i* ! ,bureau det]m9es t su* exception  
is w>rant$4  7,b7 ,cont5ts ( notice ,!  
notice requir$ "u subp>agraph 7,a7 %all 
be made 9 ! same mann] & include ! same 
in=mation1 z applicable1 z describ$ 9   
p>agraph 7#b74  7c7 ,treatm5t (         
improp]ly receiv$ loan paym5ts dur+     
transf] p]iod  7#a7 ,9 g5]al ,dur+ !    
#fj-;day p]iod beg9n+ on ! effective    
date ( transf] relat+ to a po/second>y  
education loan to be transf]r$1 a late  
fee may n be impos$ on ! borr[] )       
respect to any paym5t on su* loan1 & no 
su* paym5t may be treat$ z late = any   

o!r purposes if--  7,a7 ! paym5t is     
receiv$ by ! transf]or s]vic] in/ead ( !
 transf]ee s]vic] 7:o %\ld prop]ly      
receive paym5t7 be=e ! due date         
applicable to su* paym5t2 or  7,b7 !    
paym5t is receiv$ by ! transf]ee s]vic] 
in/ead ( ! transf]or s]vic] 7:o %\ld    
prop]ly receive paym5t7 be=e ! transf]  
is complete4  7#b7 ,notice ,to ! maximum
 ext5t practicable1 a transf]or s]vic]  
%all notify a borr[]1 bo? 9 writ+ & by  
telephone1 reg>d+ any paym5t describ$ 9 
p>agraph 7#a74  7d7 ,electronic fund    
transf] au?ority ,a transf]ee s]vic]    
%all make available to a borr[] ^: /ud5t
 loan s]vic+ is transf]r$ to ! transf]ee
 s]vic] a simple1 onl9e process ?r\gh   
:i* ! borr[] may transf] to ! transf]ee 
s]vic] any exi/+ au?ority = an          
electronic fund transf] t ! borr[] _h   
provid$ to ! transf]or s]vic]4  7e7     
,s]vic] liability  7#a7 ,effective date 
( regulations ,a /ud5t loan s]vic] %all 
n be liable to a borr[] = failure to    
comply ) ! requirem5ts ( subsection 7b7 

) respect to a transf] ( /ud5t loan     
s]vic+ be=e ! regulations "u subsection 
7f7 take effect4  7#b7 ,mitigat+ action 
,a /ud5t loan s]vic] or a po/second>y   
education l5d] %all n be liable to a    
borr[] = failure to comply ) a          
requirem5t "u ?is section if1 n lat] ?an
 #fj days aft] discov]+ an error & be=e 
! comm5cem5t ( an action "u section #acj
 or ! receipt ( writt5 notice ( ! error 
f ! borr[]1 ! /ud5t loan s]vic] notifies
 ! borr[] ( ! error & makes any         
adju/m5ts 9 ! appropriate acc\nt t are  
necess>y to ensure t ! borr[] w n be    
requir$ to pay an am\nt great] ?an !    
am\nt t ! borr[] o!rwise w\ld h paid4   
7f7 ,rulemak+ ,! ,bureau1 9 consultation
 ) ! ,secret>y ( ,education1 is au?oriz$
 to prescribe su* rules & regulations1  
make su* int]pretations1 & grant su*    
reasonable exemptions1 9 accordance )1 &
 z may be necess>y to a*ieve ! purposes 
(1 ?is *apt]4  7g7 ,def9itions ,9 ?is   
section1 ! foll[+ def9itions %all apply3
 7#a7 ,alt]native repaym5t arrangem5t ,!

 t]m alt]native repaym5t arrangem5t     
means an agre$ ^u arrangem5t betwe5 a   
loan hold] 7or1 = a ,f$]al ,direct ,loan
 or a ,f$]al ,p]k9s ,loan1 ! ,secret>y (
 ,education or ! in/itution ( high]     
education t made su* loan1 respectively7
 or /ud5t loan s]vic] & a borr[]--  7,a7
 t is diff]5t ?an ! t]ms ( an exi/+     
po/second>y education loan arrangem5t or
 agreem5t2 &  7,b7 pursuant to :i*      
remittance ( a mon?ly paym5t-- 7i7      
satisfies ! t]ms ( ! po/second>y        
education loan2 or  7ii7 is n requir$ = 
a p]iod ( #a or m mon?s 9 ord] to       
satisfy ! t]ms ( ! po/second>y education
 loan arrangem5t or agreem5t4  7#b7     
,effective date ( transf] ,! t]m        
effective date ( transf] means ! date on
 :i* ! fir/ paym5t is due to a transf]ee
 s]vic] f a borr[] "u a po/second>y     
education loan4  7#c7 ,f$]al ,direct    
,loan ,! t]m ,f$]al ,direct ,loan means 
a loan made "u "p ,d ( title ,,iv ( !   
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhg;a et seq474  7#d7 ,f$]al

 ,p]k9s ,loan ,! t]m ,f$]al ,p]k9s ,loan
 means a loan made "u "p ,e ( title ,,iv
 ( ! ,high] ,education ,act ( #aife 7#bj
 ,u4,s4,c4 #ajhg;aa et seq474  7#e7     
,in/itution ( high] education ,! t]m    
in/itution ( high] education has ! mean+
 giv5 t t]m 9 section #ajb ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajjb74  7#f7 ,late fee ,! t]m late fee 
means a late fee1 p5alty1 or adju/m5t to
 pr9cipal1 impos$ because ( a late      
paym5t or del9qu5cy by ! borr[] "u a    
po/second>y education loan4  7#g7 ,loan 
hold] ,! t]m loan hold] means a p]son :o
 owns ! title to or promissory note = a 
po/second>y education loan 7except = a  
,f$]al ,direct ,loan or a ,f$]al ,p]k9s 
,loan74  7#h7 ,po/second>y education    
exp5se ,! t]m po/second>y education     
exp5se means any exp5se t is includ$ z  
"p ( ! co/ ( att5dance 7z t t]m is def9$
 9 section #dgb ( ! ,high] ,education   
,act ( #aife 7#bj ,u4,s4,c4 #ajhgll77 ( 
a /ud5t4  7#i7 ,po/second>y education   
l5d] ,! t]m po/second>y education l5d]--

 7,a7 means--  7i7 a f9ancial           
in/itution1 z def9$ 9 section #c ( !    
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac7 t solicits1 makes1 or  
ext5ds po/second>y education loans2     
7ii7 a ,f$]al cr$it union1 z def9$ 9    
section #aja ( ! ,f$]al ,cr$it ,union   
,act 7#ab ,u4,s4,c4 #ageb7 t solicits1  
makes1 or ext5ds po/second>y education  
loans2 &  7iii7 any o!r p]son engag$ 9 !
 bus9ess ( solicit+1 mak+1 or ext5d+    
po/second>y education loans2 &  7,b7    
does n include-- 7i7 ! ,secret>y (      
,education2 or  7ii7 an in/itution (    
high] education ) respect to any ,f$]al 
,p]k9s ,loan made by ! in/itution4      
7#aj7 ,po/second>y education loan ,! t]m
 po/second>y education loan means a loan
 t is-- 7,a7 made1 insur$1 or gu>ante$  
"u "p ,b1 ,d1 or ,e ( title ,,iv ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajga et seq41 #ajhg;a et     
seq41 #ajhg;aa et seq472  7,b7 issu$ or 
made by a po/second>y education l5d] &  
is-- 7i7 ext5d$ to a borr[] ) !         

expectation t ! am\nts ext5d$ w be us$ 9
 :ole or 9 "p to pay po/second>y        
education exp5ses2 or  7ii7 ext5d$ = !  
purpose ( ref9anc+ or consolidat+ #a or 
m loans describ$ 9 subp>agraph 7,a72 or 
7,c7 a private education loan 7z def9$ 9
 section #adj7;a774  7#aa7 ,/ud5t loan  
s]vic] ,! t]m /ud5t loan s]vic]--  7,a7 
means a p]son :o p]=ms /ud5t loan       
s]vic+2  7,b7 includes a p]son p]=m+    
/ud5t loan s]vic+ = a po/second>y       
education loan on behalf ( an in/itution
 ( high] education or ! ,secret>y (     
,education "u a contract or o!r         
agreem5t2  7,c7 does n include !        
,secret>y ( ,education to ! ext5t !     
,secret>y directly p]=ms /ud5t loan     
s]vic+ = a po/second>y education loan2 &
  7,d7 does n include an in/itution (   
high] education1 to ! ext5t t !         
in/itution directly p]=ms /ud5t loan    
s]vic+ = a ,f$]al ,p]k9s ,loan made by !
 in/itution4  7#ab7 ,/ud5t loan s]vic+  
,! t]m /ud5t loan s]vic+ means1 )       
respect to a po/second>y education loan1

 any ( ! foll[+ activities3 7,a7        
,receiv+ any s*$ul$ p]iodic paym5ts1 or 
notification ( su* paym5ts1 f a borr[]  
"u a po/second>y education loan4  7,b7  
,apply+ paym5ts describ$ 9 subp>agraph  
7,a7 to an acc\nt ( ! borr[] pursuant to
 ! t]ms ( ! po/second>y education loan  
or ( ! contract gov]n+ ! s]vic+ ( !     
po/second>y education loan4  7,c7 ,dur+ 
a p]iod 9 :i* no paym5t is requir$ on ! 
po/second>y education loan-- 7i7 ma9ta9+
 acc\nt records = ! loan2 &  7ii7       
communicat+ ) ! borr[] on behalf ( !    
loan hold] or1 ) respect to a ,f$]al    
,direct ,loan or ,f$]al ,p]k9s ,loan1 ! 
,secret>y ( ,education or ! in/itution (
 high] education t made ! loan1         
respectively4  7,d7 ,int]act+ ) a borr[]
 to facilitate ! activities describ$ 9  
subp>agraphs 7,a71 7,b71 & 7,c71 includ+
 activities to help prev5t default by ! 
borr[] ( ! obligations aris+ f !        
po/second>y education loan4  7#ac7      
,transf] ( s]vic+ ,! t]m transf] (      
s]vic+ means ! assignm5t1 sale1 or      

transf] ( any /ud5t loan s]vic+ ( a     
po/second>y education loan f a transf]or
 s]vic] to a transf]ee s]vic]4  7#ad7   
,transf]ee s]vic] ,! t]m transf]ee      
s]vic] means ! /ud5t loan s]vic] to :om 
any /ud5t loan s]vic+ ( a po/second>y   
education loan is assign$1 sold1 or     
transf]r$4  7#ae7 ,transf]or s]vic] ,!  
t]m transf]or s]vic] means ! /ud5t loan 
s]vic] :o assigns1 sells1 or transf]s   
any /ud5t loan s]vic+ ( a po/second>y   
education loan to ano!r p]son4  4  7b7  
,table ( cont5ts am5dm5t ,! table (     
cont5ts = *apt] #b ( title ,i ( ! ,tru? 
9 ,l5d+ ,act is am5d$ by ins]t+ aft] !  
item relat+ to section #adj;,a ! foll[+ 
new item3  #adj;,b4 ,transf] ( s]vic+ ( 
po/second>y education loans4  4  #c4    
,am5dm5ts to ! ,high] ,education ,act ( 
#aife ,! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajja et seq47 is am5d$--
 7#a7 9 section #dhg7;a7 7#bj ,u4,s4,c4 
#ajid7;a771 by add+ at ! end ! foll[+3  
7#cj7 ,! in/itution w-- 7,a7 comply ) ! 
disclosure requirem5ts = po/second>y    

education l5d]s "u section #adj;,b7a7 ( 
! ,tru? 9 ,l5d+ ,act2 &  7,b7 ensure t  
ea* ?ird p>ty s]vic] ) :i* ! in/itution 
has ent]$ into a contract complies ) !  
applicable requirem5ts = /ud5t loan     
s]vic]s "u section #adj;,b ( su* ,act4  
2 &  7#b7 9 section #dfc;,a7b7 7#bj     
,u4,s4,c4 #ajhg;cc-#a7;b77-- 7,a7 by    
/rik+ & at ! end ( p>agraph 7#h72  7,b7 
by /rik+ ! p]iod at ! end ( p>agraph    
7#i7 & ins]t+ 2 &2 &  7,c7 by add+ at ! 
end ! foll[+3  7#aj7 ! disclosures =    
po/second>y education l5d]s & /ud5t loan
 s]vices "u section #adj;,b ( ! ,tru? 9 
,l5d+ ,act4  4