,,ii #aaeth ,,congress #ast ,session ,s4 #bahj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #cj1 #bjag,mr4 ,menendez 7for himself1 ,ms4 ,warren1 ,mr4 ,booker1 and ,mrs4 ,gillibrand7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to establish additional protections and disclosures for students and co-signers with respect to student loans1 and for other purposes4 #a4 ,short title2 findings 7a7 ,short title ,this ,act may be cited as the ,christopher ,bryski ,student ,loan ,protection ,act or ,christopher's ,law4 7b7 ,findings ,congress finds the following3 7#a7 ,the ,bureau of ,consumer ,financial ,protection 7referred to in this section as the ,,cfpb7 ,student ,loan ,ombudsman stated the following3 7,a7 ,the ,,cfpb received more than #g1gjj private student loan complaints and approximately #b1cjj debt collection complaints related to student loans between ,september #a1 #bjaf1 and ,august #ca1 #bjag44 7,b7 ,co-signers complain that information about discharge or alternative arrangements in the case of death of the primary borrower is not readily available and that decisions are made on a case-by-case basis1 giving co-signers little understanding of how the process works1 or if they will be successful44 7,c7 ,the complaints and input received by the ,,cfpb resemble many of the same issues experienced by mortgage borrowers1 such as improper application of payments1 untimeliness in error resolution1 and inability to contact appropriate personnel in times of hardship44 7,d7 ,the difference between ,federal and private student loans in periods of disability was not well-understood44 7#b7 ,an estimated #b1ejj1jjj individuals sustain a traumatic brain injury each year and older adolescents between #ae and #ai years of age are more likely to sustain a traumatic brain injury than individuals in other age groups4 7#c7 ,it has been estimated that the annual incidence of spinal cord injury1 not including those individuals who die at the scene of an accident1 is approximately #ed cases per #a1jjj1jjj individuals in the ,united ,states1 or approximately #ag1jjj new cases each year4 ,these injuries can lead to permanent disability or loss of movement and can prohibit the victim from engaging in any substantial gainful activity4 7#d7 ,according to the ,,cfpb1 more than #ij percent of new private student loans are co-signed4 7#e7 ,according to the ,,cfpb1 private student loan companies provide co-signer release to less than #a percent of eligible borrowers4 #b4 ,additional student loan protections 7a7 ,in general ,section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7 is amended by adding at the end the following3 7g7 ,additional protections relating to borrower or co-,signer of a private education loan 7#a7 ,clear and conspicuous description of obligation of borrower and co-signer ,in the case of any private educational lender that provides a private education loan1 the lender shall clearly and conspicuously describe1 in writing1 the obligations of a co-signer with respect to the loan1 including the effect that the death1 disability1 or inability to engage in any substantial gainful activity of the borrower or any co-signer would have on any such obligation1 in language that the ,bureau determines would give a reasonable person a reasonable understanding of the obligation being assumed by becoming a co-signer for the loan4 7#b7 ,prohibition on automatic default with respect to a performing loan 7,a7 ,death1 disability1 or bankruptcy of co-signer ,if a private education loan includes a co-signer1 a private educational lender may not take any adverse action 7including declaring a default1 accelerating any loan obligation1 increasing the interest rate1 or altering any obligations under the private education loan in a way that is adverse to the borrower7 against the borrower based on-- 7i7 the death1 disability1 or inability to engage in any substantial gainful activity of the co-signer2 or 7ii7 the bankruptcy of the co-signer4 7,b7 ,death1 disability1 or bankruptcy of borrower ,if a private education loan includes a co-signer1 a private educational lender may not take any adverse action 7including declaring a default1 accelerating any loan obligation1 increasing the interest rate1 or altering any obligations under the private education loan in a way that is adverse to any co-signer7 against the co-signer based on-- 7i7 the death1 disability1 or inability to engage in any substantial gainful activity of the borrower2 or 7ii7 the bankruptcy of the borrower4 7#c7 ,co-signer release 7,a7 ,requirements for automatic release of co-signer 7i7 ,criteria established by the ,bureau ,not later than #ahj days after the date of enactment of this subsection1 the ,bureau shall establish criteria1 which1 if met by the borrower of a private education loan1 shall require the private educational lender with respect to1 or servicer of1 the private education loan1 as applicable1 to promptly release any co-signer from the obligations of the co-signer under the loan without requiring any action on behalf of the borrower4 7ii7 ,criteria established by lender ,a private educational lender may establish criteria for automatic release that are different from the criteria described in clause 7i7 if the criteria established by the lender are not more restrictive with respect to the borrower or any co-signer of the private education loan than the criteria established under clause 7i74 7,b7 ,disclosure of criteria for co-signer release ,a private educational lender shall-- 7i7 include in the promissory note of a private education loan the criteria under which a co-signer may be released from the obligation of the co-signer under a private education loan under this paragraph2 and 7ii7 disclose to the borrower and any co-signer at the time the private education loan is consummated1 clearly and conspicuously1 the criteria under which a co-signer may be released from the obligation of the co-signer under a private education loan4 7,c7 ,modifications to criteria ,if a private education loan has a co-signer1 the private educational lender with respect to1 or servicer of1 the private education loan1 as applicable1 may not modify the criteria under which the co-signer may be released from the obligation of the co-signer under the private education loan without the consent of the borrower and the co-signer if the modification would be adverse to the borrower4 7,d7 ,notification on release ,a private educational lender with respect to1 or servicer of1 a private education loan1 as applicable1 shall promptly notify the borrower and any co-signers for the private education loan if a co-signer is released from the obligations of the co-signer under the private education loan under this paragraph4 7,e7 ,modification of evaluation of creditworthiness1 credit standing1 or credit capacity ,in determining whether the criteria for a co-signer release are met1 a private educational lender with respect to1 or servicer of1 a private education loan1 as applicable1 may not evaluate the creditworthiness1 credit standing1 or credit capacity of the borrower or a co-signer of the private education loan using a standard that would be more adverse to the borrower or co-signer1 as applicable1 than the standard the private educational lender used to evaluate the creditworthiness1 credit standing1 or credit capacity of the borrower or co-signer on the date on which the private education loan was consummated4 7#d7 ,designation of individual to act on behalf of the borrower ,in the case of any private educational lender that extends a private education loan1 the lender shall provide the borrower an option to designate an individual to have the legal authority to act on behalf of the borrower with respect to the private education loan in the event of the death1 disability1 or inability to engage in any substantial gainful activity of the borrower4 7#e7 ,counseling ,in the case of any private educational lender that extends a private education loan1 the lender shall ensure that the borrower1 and any co-signer1 receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to the loan1 including the information required under subparagraphs 7,h71 7,i71 7,k71 7,l71 7,m71 and 7,n7 of section #dhe7l77#b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7l77#b774 7#f7 ,model form ,the ,bureau shall publish a model form under section #aje for describing the obligation of a co-signer for the purposes of paragraph 7#a74 7#g7 ,definition of death1 disability1 or inability to engage in any substantial gainful activity ,for the purposes of this subsection with respect to a borrower or co-signer1 the term death1 disability1 or inability to engage in any substantial gainful activity-- 7,a7 means any condition described in section #dcg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg7;a772 and 7,b7 shall be interpreted by the ,bureau in such a manner as to conform with the regulations prescribed by the ,secretary of ,education under section #dcg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg7;a77 to the fullest extent practicable1 including safeguards to prevent fraud and abuse4 4 7b7 ,definitions ,section #adj7;a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a77 is amended-- 7#a7 by redesignating paragraphs 7#a7 through 7#h7 as paragraphs 7#b7 through 7#i71 respectively2 and 7#b7 by inserting before paragraph 7#b71 as so redesignated1 the following3 7#a7 the term co-signer-- 7,a7 means any individual who is liable for the obligation of another without compensation1 regardless of how designated in the contract or instrument with respect to that obligation2 7,b7 includes any person the signature of which is requested as condition to grant credit or to forbear on collection2 and 7,c7 does not include a spouse of an individual described in subparagraph 7,a71 the signature of whom is needed to perfect the security interest in a loan2 4 7c7 ,rulemaking ,not later than #a year after the date of enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall issue regulations to carry out subsection 7g7 of section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej71 as added by paragraph 7#a74 #c4 ,federal student loans 7a7 ,counseling information ,section #dhe7l77#b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7l77#b77 is amended by adding at the end the following3 7,l7 ,information regarding the conditions required to discharge the loan due to the death1 disability1 or inability to engage in any substantial gainful activity of the borrower in accordance with section #dcg7;a74 7,m7 ,any repayment1 refinance1 deferment1 forbearance1 or forgiveness opportunities available to the borrower or co-signer in the event of the death1 disability1 or inability to engage in any substantial gainful activity of the borrower or co-signer4 7,n7 ,the effect that the death1 disability1 or inability to engage in any substantial gainful activity of the borrower would have on the obligations of the borrower and any co-signer of the loan4 4 7b7 ,designation of individual ,to act on behalf of the borrower ,section #dhd of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia7 is amended-- 7#a7 in subsection 7a71 by striking paragraph 7#d7 and inserting the following3 7#d7 file with the ,secretary1 as part of the original financial aid application process1 a certification1 which need not be notarized1 but which-- 7,a7 shall include-- 7i7 a statement of educational purpose stating that the money attributable to such grant1 loan1 or loan guarantee will be used solely for expenses related to attendance or continued attendance at such institution2 and 7ii7 such student's social security number2 and 7,b7 may include a designation by such student of an individual who shall have the legal authority to act on behalf of the student with respect to any loan to the student under this title in the event of the student's death1 disability1 or inability to engage in any substantial gainful activity2 2 and 7#b7 by adding at the end the following3 7u7 ,option ,to designate individual ,to act on behalf of the borrower in clear and conspicuous manner ,the option for a student to make a designation described in subsection 7a77#d77;,b7 shall be provided in a clear and conspicuous manner to the student4 4 #d4 ,rule of construction ,nothing in this ,act1 or any amendment made by this ,act1 may be construed to adversely affect the eligibility of a student to receive any grant1 loan1 or work assistance under part ,c or part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg-ea et seq4 and #bj ,u4,s4,c4 #ajhh et seq47 based on a designation1 or the lack of a designation1 under section #dhd7;a77#d77;,b7 of that ,act 7#bj ,u4,s4,c4 #ajia7;a77#d77;,b771 as added by section #c7;b77#a74