,i #aafth ,,congress #ast ,session ,h4 ,r4 #ebid ,,in ,,the ,,house ,,of ,,representatives ,december #d1 #bjai,ms4 ,adams introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,education and ,labor1 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 amend the ,truth in ,lending ,act to establish a postsecondary education loan borrower bill of rights and to require certain creditors to obtain private loan certifications from institutions of higher education1 to amend the ,fair ,credit ,reporting ,act to require the ,bureau of ,consumer ,financial ,protection to issue rules to establish standards for reporting information related to student loans to consumer reporting agencies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,borrower ,protections ,act of #bjai4 #b4 ,postsecondary education loan borrower bill of rights ,chapter #b of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afca et seq47 is amended-- 7#a7 by redesignating section #adj;,a as section #adj;,b2 7#b7 by inserting after section #adj the following3 #adj;,a4 ,postsecondary education loan borrower bill of rights 7a7 ,definitions ,in this paragraph3 7#a7 ,borrower ,the term borrower means the person to whom a postsecondary education loan is extended4 7#b7 ,charge off ,the term charge off means charge to profit and loss1 or subject to any similar action4 7#c7 ,covered lender1 servicer1 or assignee ,the term covered lender1 servicer1 or assignee means-- 7,a7 an eligible lender 7as defined under section #dce of the ,higher ,education ,act of #aife7 of a loan made1 insured1 or guaranteed under part ,b of title ,,iv of the ,higher ,education ,act of #aife2 7,b7 any entity with which the ,secretary of ,education enters into a contract under section #def of the ,higher ,education ,act of #aife for origination1 servicing1 or collection described in subsection 7b7 of such section #def and is engaged in the provision of1 or offering1 servicing1 or collections regardless of whether the ,secretary identifies the entity as a servicer in such contract2 7,c7 a private educational lender 7as defined under section #adj7;a772 7,d7 any other person or entity engaged in the business of securing1 making1 or extending postsecondary education loans on behalf of a person or entity described in subparagraph 7,a7 or 7,c72 or 7,e7 any other holder of a postsecondary education loan other than the ,secretary of ,education4 7#d7 ,postsecondary education loan ,the term postsecondary education loan means-- 7,a7 a private education loan 7as defined under section #adj7;a772 or 7,b7 a loan made1 insured1 or guaranteed under title ,,iv of the ,higher ,education ,act of #aife4 7#e7 ,qualified written request 7,a7 ,in general ,the term qualified written request means a written correspondence of a borrower 7other than notice on a payment medium supplied by the postsecondary educational lender or servicer7 transmitted by mail1 facsimile1 or electronically through an email address or website designated by the covered lender1 servicer1 or assignee to receive communications from borrowers that-- 7i7 includes1 or otherwise enables the covered lender1 servicer1 or assignee to identify1 the name and account of the borrower2 and 7ii7 includes1 to the extent applicable-- 7,i7 sufficient detail regarding the information sought by the borrower2 or 7,,ii7 a statement of the reasons for the belief of the borrower that there is an error regarding the account of the borrower4 7,b7 ,correspondence delivered to other addresses 7i7 ,in general ,a written correspondence of a borrower is a qualified written request if the written correspondence is transmitted to and received by a covered lender1 servicer1 or assignee at a mailing address1 facsimile number1 email address1 or website address other than the address or number designated by that covered lender1 servicer1 or assignee r to receive communications from borrowers but the written correspondence meets the requirements under clauses 7i7 and 7ii7 of subparagraph 7,a74 7ii7 ,duty to transfer ,a covered lender1 servicer1 or assignee shall1 within a reasonable period of time1 transfer a written correspondence of a borrower received by the covered lender1 servicer1 or assignee at a mailing address1 facsimile number1 email address1 or website address other than the address or number designated by that covered lender1 servicer1 or assignee to receive communications from borrowers to the correct address or appropriate office or other unit of the covered lender1 servicer1 or assignee4 7iii7 ,date of receipt ,a written correspondence of a borrower transferred in accordance with clause 7i7 shall be deemed to be received by the covered lender1 servicer1 or assignee on the date on which the written correspondence is transferred to the correct address or appropriate office or other unit of the covered lender1 servicer1 or assignee4 7#f7 ,servicing ,the term servicing means one or more of the following3 7,a7 ,receiving any scheduled periodic payments from a borrower or notification of such payments pursuant to the terms of a postsecondary education loan or contract governing the servicing4 7,b7 ,applying payments to the borrower's account pursuant to the terms of the postsecondary education loan or the contract governing the servicing4 7,c7 ,maintaining account records for a postsecondary education loan4 7,d7 ,communicating with a borrower regarding a postsecondary education loan on behalf of the covered lender1 servicer1 or assignee4 7,e7 ,interactions with a borrower1 including activities to help prevent default on obligations arising from postsecondary education loans1 conducted to facilitate the activities described in subparagraph 7,a7 or 7,b74 7b7 ,sale1 transfer1 or assignment ,if the sale1 other transfer1 assignment1 or transfer of servicing obligations of a postsecondary 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-- 7#a7 the transferor shall-- 7,a7 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-- 7i7 the sale or other transfer1 assignment1 or transfer of servicing obligations2 7ii7 the identity of the transferee2 7iii7 the name1 address1 and email 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 transferor will stop accepting payment2 and 7vii7 the date on which the transferee will begin accepting payment2 7,b7 forward any payment from a borrower with respect to such postsecondary education loan to the transferee1 immediately upon receiving such payment1 during the #fj-;day period beginning on the date on which the transferor stops accepting payment of such postsecondary education loan2 7,c7 provide to the transferee all borrower information and complete payment history information for any such postsecondary education loans2 and 7#b7 the transferee shall-- 7,a7 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-- 7i7 the sale or other transfer1 assignment1 or transfer of servicing obligations2 7ii7 the identity of the transferor2 7iii7 the name1 address1 and email 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 assignment1 or transfer of servicing obligations2 7vi7 the date on which the transferor will stop accepting payment2 and 7vii7 the date on which the transferee will begin accepting payment2 7,b7 accept as on-time and may not impose any late fee or finance charge for any payment from a borrower with respect to such postsecondary education loan that is forwarded from the transferor during the #ij-;day period beginning on the date on which the transferor stops accepting payment1 if the transferor receives such payment 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 available or granted to the borrower or advertised by the previous owner or transferor of such postsecondary education loan4 7c7 ,material change in mailing address or procedure for handling payments 7#a7 ,in general ,if a covered lender1 servicer1 or assignee makes a change in the mailing address1 office1 or procedures for handling payments with respect to any postsecondary education loan1 the covered lender1 servicer1 or assignee shall clearly and conspicuously notify the borrower in writing and through the borrower's preferred or designated method of communication not less than #de calendar days in advance of such change4 7#b7 ,borrower protection window ,if a change described in paragraph 7#a7 causes a delay in the crediting of the account of the borrower made during the #ij-;day period following the date on which such change took effect1 the covered lender1 servicer1 or assignee may not impose on the borrower any negative consequences1 including negative credit reporting1 lost eligibility in borrower benefits1 late fees1 interest capitalization1 or other financial injury4 7#c7 ,loan forgiveness programs ,for purposes of any public or private loan forgiveness program that applies to a postsecondary education loan1 such program shall not be tolled during the #ij-;day period following the date on which a change described under paragraph 7#a7 takes effect4 7d7 ,interest rate and term changes for certain postsecondary education loans 7#a7 ,notification requirements 7,a7 ,in general ,except as provided in paragraph 7#c71 a covered lender1 servicer1 or assignee shall provide written notice to a borrower of any material change in the terms of the postsecondary education loan1 including an increase in the interest rate1 not later than #de days before the effective date of the change or increase4 7,b7 ,material changes in terms ,the ,bureau shall1 by regulation1 establish guidelines for determining which changes in terms are material under subparagraph 7,a74 7#b7 ,limits on interest rate and fee increases applicable to outstanding balance ,except as provided in paragraph 7#c71 a covered lender1 servicer1 or assignee may not increase the interest rate or other fee applicable to an outstanding balance on a postsecondary education loan4 7#c7 ,exceptions ,the requirements under paragraphs 7#a7 and 7#b7 shall not apply to-- 7,a7 an increase based on an applicable variable interest rate incorporated in the terms of a postsecondary education loan that provides for changes in the interest rate according to operation of an index that is not under the control of the covered lender1 servicer1 or assignee and is published for viewing by the general public2 7,b7 an increase in interest rate due to the completion of a workout or temporary hardship arrangement by the borrower or the failure of the borrower to comply with the terms of a workout or temporary hardship arrangement if-- 7i7 the interest rate applicable to a category of transactions following any such increase does not exceed the rate or fee that applied to that category of transactions prior to commencement of the workout or temporary hardship arrangement2 and 7ii7 the covered lender1 servicer1 or assignee has provided the borrower1 prior to the commencement of such arrangement1 with clear and conspicuous disclosure of the terms of the workout or temporary hardship arrangement 7including any increases due to such completion or failure72 and 7,c7 an increase in interest rate due to a provision included within the terms of a postsecondary education loan that provides for a lower interest rate based on the borrower's agreement to a prearranged plan that authorizes recurring electronic funds transfers if-- 7i7 the borrower withdraws the borrower's authorization of the prearranged recurring electronic funds transfer plan2 and 7ii7 after withdrawal of the borrower's authorization and prior to increasing the interest rate1 the covered lender1 servicer1 or assignee has provided the borrower with clear and conspicuous disclosure of the impending change in borrower's interest rate and a reasonable opportunity to reauthorize the prearranged electronic funds transfers plan4 7e7 ,payment information 7#a7 ,statement required with each billing cycle ,a covered lender1 servicer1 or assignee for each borrower's account that is being serviced by the covered lender1 servicer1 or assignee and that includes a postsecondary education loan shall transmit to the borrower1 for each billing cycle during which there is an outstanding balance in that account1 a billing statement that includes-- 7,a7 the interest rate1 principal balance1 minimum monthly payment1 and payment due date for each loan2 7,b7 the outstanding balance in the account and each loan at the beginning of the billing cycle2 7,c7 the total amount credited to the account and each loan during the billing cycle2 7,d7 the total amount of unpaid interest for the account and each loan2 7,e7 the amount of any fee added to the account during the billing cycle1 itemized to show each individual fee amount and reason for each fee2 7,f7 the address1 email address1 and phone number of the covered lender1 servicer1 or assignee to which the borrower may direct billing inquiries2 7,g7 the amount of any payments or other credits during the billing cycle that was applied respectively to the principal and to interest for each loan2 7,h7 the manner1 pursuant to subsection 7g71 in which payments will be allocated among multiple loans if the borrower does not provide specific payment instructions2 7,i7 whether each loan is in deferment or forbearance2 7,j7 information on how to file a complaint with the ,bureau and with the ombudsman designated pursuant to section #ajce of the ,consumer ,financial ,protection ,act of #bjaj and the ,department of ,education2 7,k7 for any borrower considered to be at risk1 as described in subsection 7j77#a71 a statement that a repayment specialist office or unit designated under subsection 7j7 is available to answer inquiries related to alternative repayment options1 including the toll-free telephone number to contact the specialist pursuant to subsection 7j77#c72 and 7,l7 any other information determined appropriate by rule of the ,bureau4 7#b7 ,disclosure of payment deadlines ,in the case of a postsecondary education loan account under which a late fee or charge may be imposed due to the failure of the borrower to make payment on or before the due date for such payment1 the billing statement required under paragraph 7#a7 with respect to the account shall include1 in a conspicuous location on the billing statement1 the date on which the payment is due or1 if different1 the date on which a late fee will be charged1 together with the amount of the late fee to be imposed if payment is made after that date4 7f7 ,application of payments 7#a7 ,apply payment on date received ,unless otherwise directed by the borrower1 a covered lender1 servicer1 or assignee shall apply payments to a borrower's account on the date the payment is received4 7#b7 ,promulgation of rules ,the ,bureau may issue rules for the application of postsecondary education loan payments that-- 7,a7 implements the requirements in this section2 7,b7 minimizes the amount of fees and interest incurred by the borrower and the total loan amount paid by the borrower2 7,c7 minimizes delinquencies1 assignments to collection1 and charge offs2 7,d7 requires covered lender1 servicer1 or assignee to apply payments on the date received2 and 7,e7 allows the borrower to instruct the covered lender1 servicer1 or assignee to apply payments in a manner preferred by the borrower4 7#c7 ,method that best benefits borrower ,in promulgating the rules under paragraph 7#b71 the ,bureau shall choose the allocation method that best benefits the borrower and is compatible with existing repayment options4 7g7 ,allocation of payments among multiple loans 7#a7 ,allocation of underpayments ,unless otherwise directed by the borrower1 upon receipt of a payment that does not satisfy the full amount due for each postsecondary education loan1 the covered lender1 servicer1 or assignee shall allocate amounts in a manner that minimizes negative consequences1 including negative credit reporting and late fees1 and1 where multiple loans share an equal stage of delinquency1 the covered lender1 servicer1 or assignee shall first allocate payment to the postsecondary education loan with the smallest monthly payment1 and then1 after satisfying that monthly payment1 to each successive loan bearing the next highest monthly payment1 until the payment is exhausted4 ,a borrower may instruct or expressly authorize a covered lender1 servicer1 or assignee to allocate payments in a different manner4 7#b7 ,allocation of excess amounts ,unless otherwise directed by the borrower1 upon receipt of a payment exceeding the total amount due among all the borrower's postsecondary education loans1 the covered lender1 servicer1 or assignee shall satisfy the amounts due for each loan1 and then allocate amounts in excess of the minimum payment amount first to the postsecondary education loan balance bearing the highest annual percentage rate1 and then1 once that loan is repaid1 to each successive postsecondary education loan bearing the next highest annual percentage rate1 until the payment is exhausted4 ,a borrower may instruct or expressly authorize a covered lender1 servicer1 or assignee to allocate such excess payments in a different manner4 7#c7 ,allocation of exact payments ,unless otherwise directed by the borrower upon receipt of a payment that exactly satisfies the monthly payments for each loan1 the covered lender1 servicer1 or assignee shall allocate payments to satisfy each monthly payment4 7#d7 ,promulgation of rules ,the ,bureau may issue rules for the allocation of payments among multiple postsecondary education loans that comply with the requirements of subsection 7f77#b74 7#e7 ,method that best benefits borrower ,in promulgating the rules under paragraph 7#d71 the ,director shall choose the allocation method that best benefits the borrower and is compatible with existing repayment options4 7h7 ,late fees 7#a7 ,in general ,a late fee may not be charged to a borrower for a postsecondary education loan under any of the following circumstances1 either individually or in combination3 7,a7 ,on a per-loan basis when a borrower has multiple postsecondary education loans4 7,b7 ,in an amount greater than #d percent of the amount of the payment past due4 7,c7 ,before the end of the #ae-;day period beginning on the date the payment is due4 7,d7 ,more than once with respect to a single late payment4 7,e7 ,the borrower fails to make a singular1 non-successive regularly scheduled payment on the postsecondary education loan4 7#b7 ,coordination with subsequent late fees ,no late fee may be charged to a borrower for a postsecondary education loan relating to an insufficient payment if the payment is made on or before the due date of the payment1 or within any applicable grace period for the payment1 if the insufficiency is attributable only to a late fee relating to an earlier payment1 and the payment is otherwise a full payment for the applicable period4 7#c7 ,payments at local branches ,if the loan holder1 in the case of a postsecondary education loan account1 is a financial institution that maintains a branch or office at which payments on any such account are accepted from the borrower in person1 the date on which the borrower makes a payment on the account at such branch or office shall be considered to be the date on which the payment is made for purposes of determining whether a late fee may be imposed due to the failure of the borrower to make payment on or before the due date for such payment4 7i7 ,borrower inquiries 7#a7 ,duty of covered lender1 servicer1 or assignee to respond to borrower inquiries 7,a7 ,notice of receipt of request ,if a borrower submits a qualified written request to the covered lender1 servicer1 or assignee for information relating to the servicing of the postsecondary education loan1 the covered lender1 servicer1 or assignee shall provide a written response acknowledging receipt of the qualified written request within #e business days unless any action requested by the borrower is taken within such period4 7,b7 ,action with respect to inquiry ,not later than #cj business days after the receipt from a borrower of a qualified written request under subparagraph 7,a7 and1 if applicable1 before taking any action with respect to the qualified written request of the borrower1 the covered lender1 servicer1 or assignee shall-- 7i7 make appropriate corrections in the account of the borrower1 including the crediting of any late fees1 and transmit to the borrower a written notification of such correction 7which shall include the name and toll-free or collect-call telephone number of a representative of the covered lender1 servicer1 or assignee who can provide assistance to the borrower72 7ii7 after conducting an investigation1 provide the borrower with a written explanation or clarification that includes-- 7,i7 to the extent applicable1 a statement of the reasons for which the covered lender1 servicer1 or assignee believes the account of the borrower is correct as determined by the covered lender1 servicer1 or assignee2 and 7,,ii7 the name and toll-free or collect-call telephone number of an individual employed by1 or the office or department of1 the covered lender1 servicer1 or assignee who can provide assistance to the borrower2 or 7iii7 after conducting an investigation1 provide the borrower with a written explanation or clarification that includes-- 7,i7 information requested by the borrower or explanation of why the information requested is unavailable or cannot be obtained by the covered lender1 servicer1 or assignee2 and 7,,ii7 the name and toll-free or collect-call telephone number of an individual employed by1 or the office or department of1 the covered lender1 servicer1 or assignee who can provide assistance to the borrower4 7,c7 ,limited extension of response time 7i7 ,in general ,there may be #a extension of the #cj-;day period described in subparagraph 7,b7 of not more than #ae days if1 before the end of such #cj-;day period1 the covered lender1 servicer1 or assignee notifies the borrower of the extension and the reasons for the delay in responding4 7ii7 ,reports to bureau ,each covered lender1 servicer1 or assignee shall1 on an annual basis1 report to the ,bureau the aggregate number of extensions sought by the such covered lender1 servicer1 or assignee under clause 7i74 7#b7 ,protection against negative consequences ,during the #fj-;day period beginning on the date on which a covered lender1 servicer1 or assignee receives a qualified written request from a borrower relating to a dispute regarding payments by the borrower1 a covered lender1 servicer1 or assignee may not impose any negative consequences on the borrower relating to the subject of the qualified written request or to such period including-- 7,a7 providing negative credit information to any consumer reporting agency 7as defined in section #fjc of the ,fair ,credit ,reporting ,act72 7,b7 lost eligibility for a borrower benefit2 7,c7 late fees2 7,d7 interest capitalization2 or 7,e7 other financial injury4 7j7 ,repayment specialists for at-,risk borrowers 7#a7 ,at-risk borrowers ,a covered lender1 servicer1 or assignee shall designate an office or other unit to act as a repayment specialist regarding postsecondary education loans for-- 7,a7 any borrower who-- 7i7 becomes #cj calendar days or more delinquent under the postsecondary education loan2 or 7ii7 notifies the covered lender1 servicer1 or assignee that the borrower is having difficulty making payment2 7,b7 any borrower who requests information related to options to reduce or suspend the borrower's monthly payment1 or otherwise indicates that the borrower is experiencing or is about to experience financial hardship or distress2 7,c7 any borrower who has not completed the program of study for which the borrower received the loans2 7,d7 any borrower who is enrolled in discretionary forbearance for more than nine of the previous #ab months2 7,e7 any borrower who has rehabilitated or consolidated one or more postsecondary education loans out of default within the prior #bd months2 7,f7 a borrower who seeks information regarding1 seeks to enter an agreement for1 or seeks to resolve an issue under a repayment option that requires subsequent submission of supporting documentation2 7,g7 a borrower who seeks to modify the terms of the repayment of the postsecondary education loan because of hardship2 and 7,h7 any borrower or segment of borrowers determined by the ,bureau1 in consultation with the ,secretary of ,education1 to be at risk4 7#b7 ,training ,staff of the repayment specialist office or unit designated under paragraph 7#a7 shall-- 7,a7 receive rigorous1 ongoing training related to available repayment plans1 loan forgiveness1 and cancellation and discharge options2 and 7,b7 be trained to-- 7i7 assess the borrower's long-term and short-term financial situation in discussing alternative repayment options with borrowers2 7ii7 inform borrowers1 when there is sufficient information to determine that a borrower may be eligible1 about closed-school discharge1 discharge under defense to repayment1 or total and permanent disability discharge prior to informing the borrower about any other options for repayment2 and 7iii7 inform borrowers about alternative repayment options1 prior to discussing forbearance and deferment4 7#c7 ,toll-free telephone number ,each covered lender1 servicer1 or assignee shall maintain a toll-free telephone number that shall-- 7,a7 connect directly to the repayment specialist office or unit designated under paragraph 7#a72 7,b7 be made available on the primary internet website of the covered lender1 servicer1 or assignee1 on monthly billing statements1 and any required disclosures2 and 7,c7 not subject borrowers to unreasonable call wait times4 7#d7 ,compensation ,staff of the repayment specialist office or unit designated under paragraph 7#a7 shall not be compensated on the basis of the volume of calls or accounts handled1 dollar amounts collected1 brevity of calls1 or in any other manner that may encourage undue haste and lack of diligence or quality customer service4 7k7 ,actions when borrower is having difficulty making payment or is #fj days delinquent 7#a7 ,in general ,not more than #e days after a borrower notifies a covered lender1 servicer1 or assignee that the borrower is having difficulty making payment or a borrower becomes #fj days delinquent on a postsecondary education loan1 the repayment specialist office or unit designated under subsection 7j7 shall-- 7,a7 complete a full review of the borrower's postsecondary education loan and make a reasonable effort to obtain the information necessary to determine-- 7i7 if the borrower is eligible for an alternative repayment option1 including ,federal ,direct ,consolidation ,loans under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq471 as applicable2 7ii7 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 postsecondary education loans2 and 7iii7 if the postsecondary education loan is eligible for discharge by the ,secretary of ,education2 7,b7 make a good faith effort to establish live contact with the borrower to provide the borrower information about alternative repayment options and benefits for which the borrower is eligible1 including all terms1 conditions1 and fees or costs associated with such repayment plan2 7,c7 provide to the borrower in writing1 in simple and understandable terms1 such information required by subparagraph 7,b72 7,d7 allow the borrower not less than #cj days to apply for an alternative repayment option or benefits1 if eligible2 7,e7 notify the borrower that a servicemember and veterans liaison designated under subsection 7l7 is available to answer inquiries about servicemember and veteran benefits related to postsecondary education loans1 including the toll-free telephone number to contact the liaison2 and 7,f7 notify the borrower that a repayment specialist office or unit designated under subsection 7j7 is available to answer inquiries related to alternative repayment options1 including the toll-free telephone number to contact the specialist4 7#b7 ,forbearance or deferment ,if1 after receiving information about alternative repayment options from the repayment specialist1 a borrower notifies the covered lender1 servicer1 or assignee that a long-term alternative repayment option is not appropriate1 the covered lender1 servicer1 or assignee may comply with this subsection by providing the borrower1 in writing1 in simple and understandable terms1 information about short-term options to address an anticipated short-term difficulty in making payments1 such as forbearance or deferment options1 including all terms1 conditions1 and fees or costs associated with such options4 7#c7 ,notification process 7,a7 ,in general ,each covered lender1 servicer1 or assignee shall establish a process1 in accordance with paragraph 7#a71 for a borrower to notify the covered lender1 servicer1 or assignee that-- 7i7 the borrower is having difficulty making payments on a postsecondary education loan2 and 7ii7 a long-term alternative repayment option is not appropriate4 7,b7 ,bureau requirements ,the ,director of the ,bureau shall1 based on consumer testing and in consultation with the ,secretary of ,education1 promulgate rules establishing minimum standards for covered lenders1 servicers1 or assignees in carrying out the requirements of this subsection and a model form for borrowers to notify a covered lender1 servicer1 or assignee of the information under this subsection4 7l7 ,servicemembers1 veterans1 and postsecondary education loans 7#a7 ,servicemember and veterans liaison ,each covered lender1 servicer1 or assignee 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 and other ,federal or ,state laws related to postsecondary education loans4 7#b7 ,toll-free telephone number ,each covered lender1 servicer1 or assignee shall maintain a toll-free telephone number that shall-- 7,a7 connect directly to the servicemember and veterans liaison designated under paragraph 7#a72 7,b7 be made available on the primary internet website of the covered lender1 servicer1 or assignee and on monthly billing statements2 and 7,c7 not subject borrowers to unreasonable call wait times4 7#c7 ,prohibition on charge offs and default ,a covered lender1 servicer1 or assignee may not charge off or report a postsecondary education loan as delinquent1 assigned to collection 7internally or by referral to a third party71 in default1 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#d7 ,additional liaisons ,the ,director1 in consultation with the ,secretary1 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 veterans and is specially trained on servicemembers and veteran benefits and option under the ,servicemembers ,civil ,relief ,act4 7m7 ,borrower's loan history 7#a7 ,in general ,a covered lender1 servicer1 or assignee shall make available in a secure electronic form usable by borrowers1 or in writing upon request1 the loan history of each borrower for each postsecondary education loan1 separately designating-- 7,a7 payment history1 including repayment plan and payments-- 7i7 made on such loan to previous covered lender1 servicer1 or assignee2 and 7ii7 qualifying toward a loan forgiveness program and designating such program2 7,b7 loan history1 including any forbearances1 deferrals1 delinquencies1 assignment to collection1 and charge offs2 7,c7 annual percentage rate history2 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 incentives2 7,e7 amount due to pay off the outstanding balance2 and 7,f7 any other items determined appropriate by rule of the ,bureau4 7#b7 ,original documentation ,a covered lender1 servicer1 or assignee shall make available to the borrower1 if requested1 at no charge1 copies of the original loan documents and the promissory note for each postsecondary education loan4 7n7 ,additional servicing standards 7#a7 ,prohibitions ,a covered lender1 servicer1 or assignee may not-- 7,a7 charge a fee for responding to a qualified written request under this paragraph2 7,b7 fail to take timely action to respond to a qualified written request from a borrower to correct an error relating to an allocation of payment or the payoff amount of the postsecondary education loan2 7,c7 fail to take reasonable steps to avail the borrower of all possible alternative repayment arrangements to avoid default2 7,d7 fail to perform the obligations required under title ,,iv of the ,higher ,education ,act of #aife2 7,e7 fail to respond within #aj business days to a request from a borrower to provide the name1 address1 and other relevant contact information of the loan holder of the borrower's postsecondary education loan or1 for a ,federal ,direct ,loan or a ,federal ,perkins ,loan1 the ,secretary of ,education1 or the institution of higher education who made the loan1 respectively2 7,f7 fail to comply with any applicable requirement of the ,servicemembers ,civil ,relief ,act2 7,g7 charge a convenience1 processing1 or any other fee for payments made electronically or by telephone2 7,h7 fail to comply with any other obligation that the ,bureau1 by regulation1 has determined to be appropriate to carry out the consumer protection purposes of this paragraph2 or 7,i7 fail to perform other standard servicing duties and functions4 7#b7 ,business hours ,covered lenders1 servicers1 or assignees shall be open for borrower inquiries and outreach-- 7,a7 during normal business hours1 ,monday through ,friday2 7,b7 after business hours1 ,monday through ,friday1 including for not less than #c hours after #e3jj p4m4 in all continental ,united ,states time zones2 7,c7 for not less than #f hours on ,saturday2 and 7,d7 for not less than #f hours on ,sunday4 7#c7 ,additional standards ,the ,bureau may issue rules establishing additional servicing standards to reduce delinquencies1 assignment to collections1 defaults1 and charge offs1 and to ensure borrowers understand their rights and obligations related to their postsecondary education loans4 7o7 ,prohibition on limiting borrower legal action by covered lender1 servicer1 or assignee 7#a7 ,waiver of rights and remedies ,any rights and remedies available to borrowers against covered lenders1 servicers1 or assignees may not be waived by any agreement1 policy1 or form1 including by a mandatory predispute arbitration agreement or class action waiver4 7#b7 ,predispute arbitration agreements ,no limitation or restriction on the ability of a borrower to pursue a claim in court with respect to a postsecondary education loan1 including mandatory predispute arbitration agreements and class action waivers1 shall be valid or enforceable by a covered lender1 servicer1 or assignee1 including as a third-party beneficiary or by estoppel4 7p7 ,preemption ,nothing in this paragraph may be construed to preempt any provision of ,state law regarding postsecondary education loans where the ,state law provides stronger consumer protections4 7q7 ,civil liability ,a covered lender1 servicer1 or assignee 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 covered lender1 servicer1 or assignee shall be subject to the liability provisions under such section1 including the provisions under paragraphs 7#a71 7#b77;,a77i71 7#b77;,b71 and 7#c7 of section #acj7;a74 7r7 ,eligibility for discharge ,the ,bureau shall issue rules requiring covered lender1 servicer1 or assignee to-- 7#a7 identify and contact borrowers who may be eligible for student loan discharge by the ,secretary1 including under section #dcg of the ,higher ,education ,act of #aife2 and 7#b7 provide the borrower1 in writing1 in simple and understandable terms1 information about obtaining such discharge4 7s7 ,model disclosure form for alternative repayment options1 forbearance1 and deferment options ,not later than #b years after the date of enactment of this section1 the ,director of the ,bureau shall1 based on consumer testing and in consultation with the ,secretary of ,education1 develop and issue1 pursuant to a formal rulemaking1 model forms to allow borrowers to compare alternative repayment options1 forbearance1 and deferment options with the borrower's existing repayment plan with respect to a postsecondary education loan4 ,in developing such forms1 the ,director shall consider and evaluate the following for inclusion3 7#a7 ,the total amount to be paid over the life of the loan4 7#b7 ,the total amount in interest to be paid over the life of the loan4 7#c7 ,the monthly payment amount4 7#d7 ,the expected pay-off date4 7#e7 ,other related fees and costs1 as applicable4 7#f7 ,eligibility requirements1 and how the borrower can apply for an alternative repayment option1 forbearance1 or deferment option4 7#g7 ,any relevant consequences due to action or inaction1 such as default1 including any actions that would result in the loss of eligibility for alternative repayment options1 forbearance1 or deferment options4 7t7 ,student loan servicing interagency working group 7#a7 ,in general ,not later than #cj days after the date of enactment of this section1 the ,director of the ,bureau shall establish a student loan servicing interagency working group co-chaired by the ,director and the ,secretary of ,education and including the ,chief ,operating ,officer of the ,office of ,federal ,student ,aid of the ,department of ,education1 the ,director of the ,office of ,management and ,budget1 the ,secretary of the ,treasury1 and the heads of any other relevant ,federal departments or agencies4 7#b7 ,advisory report on rulemaking 7,a7 ,in general ,not later than #abj days after the date the working group under paragraph 7#a7 is established1 the working group shall publish an advisory report making recommendations to the ,director of the ,bureau related to the promulgation of regulations under this section with respect to entities with which the ,secretary has entered into a contract under section #def of the ,higher ,education ,act of #aife4 7,b7 ,public feedback ,following the publication of the advisory report required under subparagraph 7,a71 the working group shall accept1 for not less than #fj days1 from the public specific feedback on the recommendations included in the report4 7#c7 ,publication of final recommendations ,not later than #cj days following the conclusion of the public feedback process described in paragraph 7#b77;,b71 the working group shall publish final recommendations for the ,director of the ,bureau related to the promulgation of regulations under this section4 7#d7 ,policy direction to ,federal student aid ,the working group shall develop and propose policy direction for the ,secretary of ,education to issue to the ,office of ,federal ,student ,aid1 through which the ,office of ,federal ,student ,aid shall incorporate1 into contracts awarded under section #def of the ,higher ,education ,act of #aife1 applicable requirements and standards promulgated under this section4 7#e7 ,meetings ,after the working group publishes final recommendations under paragraph 7#c71 the working group shall meet not less often than once per year including to-- 7,a7 evaluate the application of regulations promulgated under this section on entities with which the ,secretary has entered into a contract under section #def of the ,higher ,education ,act of #aife2 7,b7 evaluate the ,office of ,federal ,student ,aid's implementation of policy direction developed pursuant to paragraph 7#d72 7,c7 develop and implement an oversight plan to ensure compliance by entities with which the ,secretary has entered into a contract under section #def of the ,higher ,education ,act of #aife with policy direction developed under paragraph 7#d7 and regulations promulgated under this section2 and 7,d7 undertake other activities to improve coordination among the members of the working group as it relates to the ,secretary's administration of the ,federal ,direct ,loan ,program4 7#f7 ,rule of construction ,nothing in this subsection may be construed to alter1 limit1 or restrict the ,bureau's obligations under chapter #e of title #e1 ,united ,states ,code 7commonly known as the ,administrative ,procedures ,act71 including the ,director's obligation to provide notice1 solicit public comment1 and respond to such comment when issuing regulations4 2 and 7#c7 in the table of contents1 by striking the item relating to section #adj;,a and inserting the following3 #adj;,a4 ,postsecondary education loan borrower bill of rights4 #adj;,b4 ,procedure for timely settlement of estates of decedent obligors4 4 #c4 ,standards for reporting student loan information to consumer reporting agencies ,section #fbc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7 is amended-- 7#a7 by adding at the end the following3 7f7 ,reporting information related to student loans 7#a7 ,standards for reporting ,the ,bureau1 in consultation with the ,secretary of ,education1 shall issue rules to establish standards for the furnishing of information related to student loans to a consumer reporting agency and any furnisher of such information shall comply with such rules4 7#b7 ,specific standards ,in issuing rules under paragraph 7#a71 the ,bureau shall specifically establish standards for the furnishing of information related to-- 7,a7 the transfer of the servicing of a student loan to a new servicer2 7,b7 the loan term or duration of a student loan2 or 7,c7 a student loan being placed in forbearance4 7#c7 ,responsibilities of the ,private ,education ,loan ,ombudsman 7,a7 ,monitoring consumer complaints ,the ,private ,education ,loan ,ombudsman of the ,bureau 7in this subsection referred to as the ,ombudsman7 shall monitor complaints from consumers to assess compliance with the rules issued under paragraph 7#a7 and1 if the ,ombudsman determines it appropriate1 recommend supervisory or enforcement actions to the ,director of the ,bureau with respect to a person the ,ombudsman determines may be in violation of such rules4 7,b7 ,recommendations on dispute process ,the ,ombudsman shall issue periodic recommendations to the ,director of the ,bureau and the ,congress on regulatory and statutory changes that the ,ombudsman believes would improve the process under this section for disputing information related to student loans that has been furnished to a consumer reporting agency4 7#d7 ,monitoring compliance ,the ,director of the ,bureau shall monitor compliance with the rules issued under paragraph 7#a7 and1 if the ,director determines that a person may be in violation of such rules1 take such supervisory or enforcement actions as the ,director determines appropriate4 7#e7 ,student loan defined ,in this subsection1 the term student loan means-- 7,a7 a private education loan1 as defined in section #adj7;a7 of the ,truth in ,lending ,act2 and 7,b7 a loan made1 insured1 or guaranteed under title ,,iv of the ,higher ,education ,act of #aife4 2 and 7#b7 in subsection 7c77#b71 by striking subsection 7b7 of this section and inserting subsection 7b7 or 7f7 of this section 7including any regulations issued thereunder74 #d4 ,institutional certification 7a7 ,in general ,section #abh7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e77 is amended-- 7#a7 by striking paragraph 7#c7 and inserting the following3 7#c7 ,private loan certification required 7,a7 ,in general ,except as provided in subparagraph 7,b71 a private educational lender shall1 before consummating any loan with respect to a student attending an institution of higher education1 obtain1 from the institution of higher education the student intends to attend1 a private loan certification as described in subparagraph 7,e74 7,b7 ,exception ,a private educational lender may consummate a private education loan with respect to a student attending an institution of higher education without obtaining a private loan certification as required in subparagraph 7,a7 if1 in1 before the end of the #ae-;day period following the date on which the private educational lender requests a certification from such institution1 such institution does not-- 7i7 notify the private educational lender of the refusal of the institution to provide such certification2 or 7ii7 notify the private educational lender that more time will be needed to comply with the request for the private loan certification4 7,c7 ,private loan certification contents ,any private loan certification provided by an institution of higher education pursuant to subparagraph 7,a7 shall include-- 7i7 the enrollment status of the student2 7ii7 the cost of attendance at the institution for the student 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 total estimated amount of financial assistance for such student1 including assistance received under title ,,iv of the ,higher ,education ,act of #aife4 7,d7 ,consummation of loan without certification ,if a private educational lender consummates a loan in violation of this subsection1 such private education lender shall report the consummation of such loan in a manner determined by the ,bureau4 7,e7 ,institution provision of certification ,if a private educational lender submits a request to an institution of higher education for a private loan certificate1 such institution of higher education shall1 not later than the end of the #ae-;day period beginning on the date such institution receives such request-- 7i7 provide such certification2 7ii7 notify the private educational lender that the institution refuses to provide such certification2 or 7iii7 notify the private educational lender that more time will be needed to comply with the request for the private loan certification4 7,f7 ,institution disclosures to borrower ,before providing a private loan certification to a private educational lender1 an institution of higher education shall provide to the borrower notice of-- 7i7 the amount of any ,federal student assistance under title ,,iv of the ,higher ,education ,act of #aife for which the borrower is eligible2 7ii7 the advantages of ,federal student assistance under title ,,iv of the ,higher ,education ,act of #aife1 including disclosure of the fixed interest rates1 deferments1 flexible repayment options1 loan forgiveness programs1 and other protections2 7iii7 the right of the borrower to choose a private educational lender of their choice2 7iv7 the impact the private education loan for which the institution of higher education is submitting a private loan certification would have on the eligibility of the borrower for other financial assistance including ,federal assistance under title ,,iv of the ,higher ,education ,act of #aife2 7v7 the right of the borrower to accept or reject a private education loan within the #cj-;day period following a private educational lender's approval of the borrower's application for a private education loan2 and 7vi7 the right of the borrower to cancel any private educational loan within #c days of the consummation of such loan4 2 7#b7 by redesignating paragraphs 7#i71 7#aj71 and 7#aa7 as paragraphs 7#ab71 7#ac71 and 7#ad71 respectively2 and-- 7,a7 by inserting after paragraph 7#h7 the following3 7#i7 ,loan statements for borrowers 7,a7 ,in general ,a private educational lender that consummates a private education loan with respect to a student attending an institution of higher education shall provide a loan statement to the borrower not less than once every #c months during the period during which the student attends the institution of higher education4 7,b7 ,contents of loan statement ,any loan statement provided to a borrower pursuant to subparagraph 7,a7 shall-- 7i7 report the amount of the borrower's total remaining debt with the private educational lender1 including any accrued but unpaid interest and capitalized interest2 and 7ii7 report the amount of any increase in the borrower's total debt with the private educational lender in the period following the most recent loan statement was provided to the borrower4 7#aj7 ,notification of private educational loan ,not later than #c days after a private educational lender consummates a private education loan with respect to a student attending an institution of higher education1 such private educational lender shall notify the institution of higher education the student is to attend of the amount of the private education loan the private educational lender has extended to such student4 7#aa7 ,annual report ,each private educational lender shall1 each year1 submit to the ,bureau information about the private education loans such private educational lender has entered4 4 7b7 ,definition of ,private ,education ,loan ,section #adj7;a77#h77;,a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a77#h77;,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 inserting 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 7c7 ,regulations ,not later than #cfe days after the date of enactment of this ,act1 the ,director of the ,bureau of ,consumer ,financial ,protection shall issue rules in final form to implement paragraphs 7#c71 7#i71 and 7#aa7 of section #abh7;e7 of the ,truth in ,lending ,act1 as amended by this section4 ,such regulations shall become effective not later than #f months after their date of issuance4 7d7 ,effective date ,the amendments made by subsections 7a7 and 7b7 shall take effect #a year after the date of the enactment of this section4 7e7 ,report 7#a7 ,in general ,not later than #bd months after issuing rules under subsection 7c71 the ,director of the ,bureau of ,consumer ,financial ,protection shall submit to the ,congress a report about the compliance of private educational lenders and institutions of higher education with section #abh7;e7 of the ,truth in ,lending ,act1 as amended by this section4 7#b7 ,contents ,any report submitted to ,congress pursuant to paragraph 7#a7 shall include information about the degree to which institutions of higher education1 in making disclosures to borrowers pursuant to section #abh7;e77#c77;,f7 of the ,truth in ,lending ,act1 effectively encourage borrowers to exhaust ,federal assistance under title ,,iv of the ,higher ,education ,act of #aife before entering a private educational loan4