,,ii #aafth ,,congress #ast ,session ,s4 #baad ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ae1 #bjai,mr4 ,young 7for himself1 ,mr4 ,warner1 ,mr4 ,rubio1 and ,mr4 ,coons7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to provide the legal framework and income tax treatment necessary for the growth of innovative private financing options1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,,isa ,student ,protection ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,,title ,i--,tax ,treatment of a ,qualified ,,isa ,sec4 #aja4 ,tax treatment of proceeds and payments of future income4 ,sec4 #ajb4 ,terms and conditions of ,qualified ,i,s,as4 ,sec4 #ajc4 ,rulemaking2 model disclosure forms4 ,sec4 #ajd4 ,truth in ,lending ,act4 ,sec4 #aje4 ,consent to continuing release of taxpayer information under ,qualified ,i,s,as and income-share agreements4 ,,title ,,ii--,treatment of a ,qualified ,,isa ,under ,state ,law ,sec4 #bja4 ,lawfulness of contracts2 preemption of ,state law4 ,sec4 #bjb4 ,preemption of ,state law with respect to usury4 ,sec4 #bjc4 ,preemption of pre-existing ,state laws with respect to ability-to-repay and licensing laws4 ,,title ,,iii--,federal ,individual ,assistance ,treatment of a ,qualified ,,isa ,sec4 #cja4 ,proceeds not treated as income in calculation of financial need under the ,higher ,education ,act of #aife4 ,,title ,,iv--,treatment ,under ,securities ,laws ,sec4 #dja4 ,qualified ,i,s,as not treated as securities4 ,sec4 #djb4 ,businesses making ,qualified ,i,s,as excluded from investment company treatment4 ,,title ,v--,treatment ,under ,federal ,consumer ,finance ,laws ,sec4 #eja4 ,qualified ,,isa anti-discrimination protections4 ,sec4 #ejb4 ,prohibition on requiring preauthorized electronic fund transfers4 ,sec4 #ejc4 ,treatment under the ,fair ,credit ,reporting ,act4 ,sec4 #ejd4 ,application of the ,fair ,debt ,collection ,practices ,act4 ,sec4 #eje4 ,application of the ,military ,lending ,act4 ,sec4 #ejf4 ,application of the ,servicemembers ,civil ,relief ,act4 ,sec4 #ejg4 ,rulemaking4 ,,title ,,vi--,treatment ,under ,other ,laws ,sec4 #fja4 ,insurance and wagering4 ,sec4 #fjb4 ,payments not considered prepayments4 ,,title ,,vii--,reporting ,requirement for the ,bureau of ,consumer ,financial ,protection ,sec4 #gja4 ,report4 #b4 ,definitions ,for purposes of this ,act3 7#a7 ,comparable loan ,the term comparable loan means1 with respect to a ,qualified ,,isa1 a loan that-- 7,a7 has an original principal amount such that1 after any origination fees on the loan are paid1 the amount of loan financing received by the individual is equal to the total amount of funding provided under the ,qualified ,,isa to or on behalf of the individual subject to the ,qualified ,,isa2 7,b7 has the same disbursement or funding date1 payment start date1 and number of required monthly payments2 and 7,c7 is fully amortized over such term with monthly payments of principal and interest4 7#b7 ,income-share agreement ,the term income-share agreement means an agreement-- 7,a7 between an individual and an ,,isa funder2 7,b7 under which-- 7i7 the ,,isa funder credits towards the tuition or other obligations of1 or pays amounts to1 or on behalf of1 such individual for costs associated with a postsecondary training program1 or any other program designed to increase the individual's human capital1 employability1 or earning potential 7and not limited to programs eligible to participate as programs under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq4772 and 7ii7 such individual pays to such ,,isa funder 7or the ,,isa funder's successor in interest7 income-share payments for a defined term2 and 7,c7 is not a loan4 7#c7 ,income-share funding ,the term income-share funding means-- 7,a7 costs associated with a postsecondary training program1 or any other program designed to increase the individual's human capital1 employability1 or earning potential 7and not limited to programs eligible to participate as programs under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq4772 and 7,b7 an allowance for books1 supplies1 transportation1 and miscellaneous personal expenses1 including a reasonable allowance for-- 7i7 the documented rental or purchase of a personal computer2 or 7ii7 the refinancing of debt used for the costs described in this subparagraph4 7#d7 ,income-share payment ,the term income-share payment means an amount equal to a specified percentage of the future income of an individual4 7#e7 ,,isa funder ,with respect to a ,qualified ,,isa1 the term ,,isa funder means the party to the ,qualified ,,isa who-- 7,a7 credits towards the tuition or other obligations of1 or pays amounts to1 or on behalf of1 an individual solely for the purposes specified in paragraph 7#c77;,a77i72 and 7,b7 has the right to receive a specified percentage of the individual's future income4 7#f7 ,qualified ,,isa ,the term ,qualified ,,isa means an agreement between an individual and an ,,isa funder that-- 7,a7 is not a loan1 but is an income-share agreement under which-- 7i7 the ,,isa funder credits towards the tuition or other obligations of1 or pays amounts to1 or on behalf of1 such individual for income-share funding2 and 7ii7 such individual pays to such ,,isa funder 7or the ,,isa funder's successor in interest72 and 7,b7 meets the requirements of subsections 7a7 and 7b7 of section #ajb4 7#g7 ,state ,the term ,state means the several ,states of the ,united ,states1 the ,commonwealth of ,puerto ,rico1 the ,district of ,columbia1 ,guam1 ,american ,samoa1 the ,virgin ,islands1 the government of the ,northern ,mariana ,islands1 and the ,trust ,territory of the ,pacific ,islands4 7#h7 ,state law ,the term ,state law means-- 7,a7 any law1 decision1 rule1 regulation1 or other action having the effect of a law of any ,state or any political subdivision of a ,state1 or any agency or instrumentality of a ,state or political subdivision of a ,state2 and 7,b7 any law of the ,united ,states applicable only to the ,district of ,columbia4 ,i ,tax ,treatment of a ,qualified ,,isa #aja4 ,tax treatment of proceeds and payments of future income ,for purposes of the ,internal ,revenue ,code of #aihf3 7#a7 ,funding excluded from gross income ,in the case of an individual1 gross income shall not include the amount of any income-share funding that is credited toward the tuition or other obligations of1 or paid to or on behalf of1 such individual under a ,qualified ,,isa4 7#b7 ,difference in repayment not included as gross income ,in the case of a ,qualified ,,isa under which the income-share funding exceeds the total income-share payments 7in any period over the life of the contract71 the individual's gross income shall not include the amount of such excess4 7#c7 ,treatment of payments of future income ,the amount of any income-share payments under a ,qualified ,,isa shall be treated-- 7,a7 first1 with respect to so much of such amount as does not exceed the income-share funding under such ,qualified ,,isa1 as a recovery of investment 7with a corresponding reduction in basis7 in the contract2 and 7,b7 second1 as income on the contract which is includible in gross income4 #ajb4 ,terms and conditions of ,qualified ,i,s,as 7a7 ,terms and conditions ,each ,qualified ,,isa shall comply with the following3 7#a7 ,specified percentage of income 7,a7 ,in general ,the ,qualified ,,isa specifies the percentage of future income required to be paid4 7,b7 ,maximum percentage ,the maximum percentage of income an individual would be required to pay under the ,qualified ,,isa shall not exceed #bj percent1 and the product of such percentage and the number of monthly payments required under the ,qualified ,,isa divided by #ab shall not exceed #b4be 7which figure is the product of #g4e percent and the number of years in the longest allowable contract under paragraph 7#d77;,a774 7#b7 ,definition of income ,the ,qualified ,,isa specifies the definition of income to be used for purposes of calculating an individual's obligation to pay under the ,qualified ,,isa1 which-- 7,a7 shall not in any case include the income of the individual's children2 7,b7 shall not include-- 7i7 any amount paid to the individual under title ,,ii or ,,xvi of the ,social ,security ,act 7#db ,u4,s4,c4 #dja et seq41 #acha et seq47 or under a ,state program funded title ,,iv under of such ,act 7#db ,u4,s4,c4 #fja et seq472 or 7ii7 any amount received by the individual under the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #agga et seq472 7,c7 shall include revenue sources primarily incurred from an individual's employment2 and 7,d7 may include another revenue source besides employment if an individual has voluntarily chosen to not seek employment and is still receiving significant revenue from another source4 7#c7 ,affordability for low after-school income 7,a7 ,in general ,the ,qualified ,,isa provides that when an individual subject to the ,qualified ,,isa has an income that is equal to or below the threshold amount described in subparagraph 7,b71 the percentage of income obligation for the individual is zero4 7,b7 ,threshold amount ,the threshold amount under this subparagraph is an amount equal to 7or at the option of the ,,isa funder1 greater than7-- 7i7 #bjj percent of the poverty line for a single person 7as defined in section #fgc of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb772 or 7ii7 in the case of a ,qualified ,,isa entered into before ,january #a1 #bjbj1 #aej percent of such poverty line for a single person4 7,c7 ,allowance of fees or nominal payments ,subparagraph 7,a7 shall not be interpreted to preclude the charging of fees or nominal payments 7as described in paragraph 7#h77 during this period4 7#d7 ,specified duration2 extension of period 7,a7 ,duration ,the ,qualified ,,isa specifies the maximum period of time during which the individual will be obligated to make a specified number of monthly payments of a percentage of the individual's future income 7excluding periods when just a nominal payment 7as described under paragraph 7#h77 is required71 which may not 7except as provided in subparagraph 7,b77 exceed #cfj months4 7,b7 ,extension of period ,the ,qualified ,,isa may provide for the extension of such period by the number of months during which the individual's percentage of income obligation 7excluding nominal payments and fees7 was zero4 7#e7 ,early termination ,the ,qualified ,,isa specifies the terms and conditions under which the individual subject to the agreement may terminate the agreement4 7#f7 ,appropriate risk sharing ,the payments required under the ,qualified ,,isa for an individual with income during the payment term that is less than or equal to #bbe percent of the poverty line for a single person 7as defined in section #fgc of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb77 shall not exceed the payments on a comparable loan that bears interest at a rate less than or equal to the annual percentage rate of interest limitation under section #ihg7;b7 of title #aj1 ,united ,states ,code4 7#g7 ,aggregate limitation on obligation ,the ,qualified ,,isa provides that the total percentage of future income of the individual that the individual agrees to pay1 under the current ,qualified ,,isa and any other ,qualified ,i,s,as previously entered into by the individual1 shall not exceed #bj percent4 7#h7 ,nominal payments ,the ,qualified ,,isa specifies any nominal monthly payment that is required during periods when the individual subject to the ,qualified ,,isa has no percentage of income obligation1 except that-- 7,a7 such nominal monthly payment shall not exceed twenty-five dollars per month 7adjusted each year to reflect changes in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics of the ,department of ,labor for the most recent #ab-month period for which the data are available72 and 7,b7 the total number of nominal payments that may be required shall not exceed the maximum number of allowable payments described in paragraph 7#d77;,a74 7#i7 ,protections 7,a7 ,in general ,the ,qualified ,,isa specifies1 at a minimum1 individual rights with respect to each of the following3 7i7 ,default or delinquency4 7ii7 ,overpayment or underpayment4 7iii7 ,disability4 7iv7 ,death4 7v7 ,service as a member of the armed services 7including the ,national ,guard and ,reserves74 7,b7 ,prior ,i,s,as ,if a ,qualified ,,isa executed prior to the date of enactment of this ,act does not meet the requirements in subparagraph 7,a71 the ,,isa funder shall come into compliance with such subparagraph by issuing1 not later than #ahj days after the date of enactment of this ,act1 an addendum to the ,qualified ,,isa that contains the information described in such subparagraph4 7b7 ,required disclosures 7#a7 ,in general ,an ,,isa funder of a ,qualified ,,isa shall provide1 to any individual intending to commit under a ,qualified ,,isa to pay future income and before the individual enters into the agreement under the ,qualified ,,isa1 a written document that clearly and simply discloses-- 7,a7 that the ,qualified ,,isa is not credit or a loan1 and that the amount the individual will be required to pay under the ,qualified ,,isa-- 7i7 may be more or less than the amount provided to the individual pursuant to the ,qualified ,,isa2 and 7ii7 will vary in proportion to the individual's future income2 7,b7 that the obligations of the individual under the ,qualified ,,isa are dischargeable under bankruptcy law2 7,c7 a description of the terms in which the obligations of the individual under the ,qualified ,,isa shall be extinguished in advance of full duration of the agreed-to term2 7,d7 the duration of the individual's obligations under the ,qualified ,,isa 7absent such extinguishment71 including any circumstances under which the duration of the ,qualified ,,isa would be extended or extinguished2 7,e7 the percentage of income the individual is committing to pay under the ,qualified ,,isa1 including whether the percentage of income is fixed or variable under the ,qualified ,,isa1 and the minimum amount of annual income that triggers the individual's obligation under the ,qualified ,,isa to make payments for such year2 7,f7 the definition of income to be used for purposes of calculating the individual's obligation under the ,qualified ,,isa2 7,g7 7i7 a comparison of-- 7,i7 the amounts and number of payments an individual would be required to pay under the ,qualified ,,isa at a range of annual income levels1 which income levels shall correspond to the levels the individual might reasonably be expected to make given the intended use of the funds provided under the ,qualified ,,isa1 as determined in accordance with guidance issued by the ,director of the ,bureau of ,consumer ,financial ,protection2 to 7,,ii7 the amounts and number of payments required to be paid under one or more comparable loans1 including1 at a minimum-- 7aa7 a loan at a fixed or variable interest rate and with a number of payments determined by the ,director of the ,bureau of ,consumer ,financial ,protection to be an approximation of the fixed or variable interest rate available to student loan borrowers in the private marketplace2 and 7bb7 a comparable ,federal ,direct ,,plus loan under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq471 if the individual would be eligible for such a loan2 and 7ii7 a prominent notice accompanying the comparison that clearly and conspicuously advises that loan payments may be required regardless of the income of an individual2 7,h7 income verification documentation1 including personal tax records submitted to the ,internal ,revenue ,service1 that the individual may be required to provide under the ,qualified ,,isa2 7,i7 intent to conduct annual reconciliation relating to obligations owed by the individual under the ,qualified ,,isa2 and 7,j7 any nominal payments1 as described in subsection 7a77#h71 required under the ,qualified ,,isa4 7#b7 ,no other material terms ,the ,qualified ,,isa disclosures required by paragraph 7#a7 shall be provided in a clear and conspicuous manner1 and shall not be disclosed together with any other material terms or conditions that may be applicable to the ,qualified ,,isa4 7c7 ,non-,interference ,a ,qualified ,,isa represents an obligation by the individual to pay the specific percentage of future income1 but shall not be construed to give the contract holder any rights over an individual's actions other than as provided in this ,act4 7d7 ,effect of failure ,to provide documentation 7#a7 ,in general ,absent income documentation from an individual under a ,qualified ,,isa1 the ,,isa funder of such ,qualified ,,isa 7or the funder's successor in interest7 may assume a certain monthly income level for the individual1 up to the greater of-- 7,a7 the level that would create an obligation that is approximately equal to the amount required to return the initial ,qualified ,,isa amount to the ,,isa funder over the remaining required payments2 or 7,b7 the average monthly income for the individual from the previous #f months of employment4 7#b7 ,treatment under ,state law ,any obligation resulting from an assumed income level under paragraph 7#a7 shall not be considered to be imposing an unlawful fee under a ,state law unless such ,state law expressly states that it is intended to apply to ,qualified ,i,s,as4 7#c7 ,verification of income ,if an individual supplies an ,,isa funder 7or the funder's successor in interest7 with the individual's income verification information within #ahj days of the ,,isa funder 7or the funder's successor in interest7 assuming an income level for such individual under paragraph 7#a71 the individual shall be entitled to have any payments that were made in excess of the individual's actual obligation under the contract either refunded to the individual or credited to future obligations under the ,qualified ,,isa4 #ajc4 ,rulemaking2 model disclosure forms 7a7 ,no ,bureau general rulemaking authority ,except as provided under subsection 7b7 and section #ajb7;b77#a77;,g71 the ,director of the ,bureau of ,consumer ,financial ,protection may not issue regulations under this title or pursuant to any other authority granted to the ,bureau of ,consumer ,financial ,protection under the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7,public ,law #aaa-bjc74 7b7 ,model disclosure forms 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,director of the ,bureau of ,consumer ,financial ,protection1 after engaging in appropriate consumer testing of such forms1 shall promulgate a model disclosure form for the disclosures required under section #ajb7;b74 7#b7 ,safe harbor ,any person who uses the model disclosure form promulgated pursuant to paragraph 7#a7 and includes accurate information required under section #ajb7;b7 shall be deemed to be in compliance with the disclosure requirements under section #ajb7;b7 and shall not be subject to any ,state law 7including regulations7 to the extent that such law imposes any additional or differing disclosure requirements4 #ajd4 ,truth in ,lending ,act ,any ,qualified ,,isa shall not be considered credit and ,,isa funders 7and their successors in interest7 shall not be considered creditors1 as those terms are defined in section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb74 #aje4 ,consent to continuing release of taxpayer information under ,qualified ,i,s,as and income-share agreements ,by not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall modify ,treasury ,regulations and guidance to provide for continuing consent to disclosure of an individual's return information to an ,,isa funder 7or the funder's successor in interest7 under a ,qualified ,,isa or income-share agreement1 but only for periods relevant to1 and only to the extent the ,secretary determines is necessary and appropriate in carrying out the terms of1 such ,qualified ,,isa or income-share agreement4 ,,ii ,treatment of a ,qualified ,,isa ,under ,state ,law #bja4 ,lawfulness of contracts2 preemption of ,state law 7a7 ,in general ,a ,qualified ,,isa shall be a valid1 binding1 and enforceable contract notwithstanding any ,state law limiting or otherwise regulating assignments of future wages or other income4 7b7 ,good faith reliance ,an ,,isa funder may rely in good faith on a statement from the individual obligated by a ,qualified ,,isa with respect to such individual's aggregate obligation on the ,qualified ,,isa4 #bjb4 ,preemption of ,state law with respect to usury ,a ,qualified ,,isa shall not be subject to ,state law with respect to usury1 credit1 loans1 or credit or installment sales1 unless such ,state law expressly states that it is intended to apply to ,qualified ,i,s,as4 #bjc4 ,preemption of pre-existing ,state laws with respect to ability-to-repay and licensing laws ,a ,qualified ,,isa shall not be subject to a ,state law with respect to ability-to-repay requirements1 and neither an ,,isa funder issuing a ,qualified ,,isa1 its successor in interest1 nor any entity servicing any ,qualified ,,isa on behalf of an ,,isa funder or its successor interest1 shall be subject to any ,state law with respect to ,,isa licensing or registration1 unless such ,state law was issued after the date of the enactment of this ,act and such ,state law expressly states that it is intended to apply to ,qualified ,i,s,as4 ,,iii ,federal ,individual ,assistance ,treatment of a ,qualified ,,isa #cja4 ,proceeds not treated as income in calculation of financial need under the ,higher ,education ,act of #aife ,no portion of any amounts received by an individual for entering into a ,qualified ,,isa or an income-share agreement shall be included as income or assets in the computation of expected family contribution for any program funded in whole or in part under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq474 ,,iv ,treatment ,under ,securities ,laws #dja4 ,qualified ,i,s,as not treated as securities ,a ,qualified ,,isa and an income-share agreement shall not be treated as a security for purposes of the securities laws 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 any similar ,state law1 or any ,state law that directly or indirectly prohibits1 limits1 or imposes conditions1 based on the merits of an offering or issuer of securities1 upon the offer or sale of any security4 ,nothing in the preceding sentence may be construed to prevent an instrument that is collateralized by1 or serviced by the cash flows of1 a ,qualified ,,isa from being treated as a security for purposes of any law described in that sentence4 #djb4 ,businesses making ,qualified ,i,s,as excluded from investment company treatment ,section #c7;c7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77 is amended-- 7#a7 in paragraph 7#d71 by inserting ,qualified ,i,s,as or income-share agreements 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai71 after industrial banking12 and 7#b7 in paragraph 7#e7-- 7,a7 by inserting 1 including purchasing or otherwise acquiring ,qualified ,i,s,as or income-share agreements 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai7 after services the first place it appears2 and 7,b7 by inserting 1 including making ,qualified ,i,s,as or income-share agreements 7as so defined7 after services the second place it appears4 ,v ,treatment ,under ,federal ,consumer ,finance ,laws #eja4 ,qualified ,,isa anti-discrimination protections ,the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq47 is amended-- 7#a7 in section #gja7;b7 7#ae ,u4,s4,c4 #afia7;b77-- 7,a7 in the matter preceding paragraph 7#a71 by inserting or an ,,isa funder or its successor in interest after creditor2 7,b7 in paragraph 7#d71 by striking or at the end2 7,c7 in paragraph 7#e71 by striking the period at the end and inserting 2 or2 and 7,d7 by adding at the end the following3 7#f7 to set the terms of a ,qualified ,,isa or an income-share agreement 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai71 based on the earnings reasonably anticipated by the creditor with respect to any program of study1 certificate program1 degree program1 or institutions of higher education where a ,qualified ,,isa is offered4 2 and 7#b7 in section #gjb 7#ae ,u4,s4,c4 #afia;a7-- 7,a7 in subsection 7d71 by inserting 1 or the right granted under a ,qualified ,,isa or an income-share agreement 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai7 before the period at the end2 and 7,b7 in subsection 7e7-- 7i7 by striking or any assignee and inserting any assignee2 and 7ii7 by inserting or any person who regularly extends1 renews1 or continues funding under a qualified ,,isa or an income-share agreement 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai7 before the period at the end4 #ejb4 ,prohibition on requiring preauthorized electronic fund transfers ,section #iac7a7 of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afick7#a77 is amended by inserting or the entering into a ,qualified ,,isa or an income-share agreement 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai7 with a consumer after a consumer4 #ejc4 ,treatment under the ,fair ,credit ,reporting ,act 7a7 ,in general ,section #fje of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7 is amended by adding at the end the following3 7i7 ,qualified ,,isa information ,with respect to a ,qualified ,,isa or an income-share agreement 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai71 a consumer report made by a consumer reporting agency-- 7#a7 may include a description of the contract terms of the ,qualified ,,isa or income-share agreement1 as applicable1 and1 subject to subsection 7a71 information with respect to amounts that are owed under the ,qualified ,,isa2 and 7#b7 may not include any speculation about future amounts that may be owed under the ,qualified ,,isa or income-share agreement1 as applicable4 4 7b7 ,regulations ,the ,director of the ,bureau of ,consumer ,financial ,protection shall promulgate regulations with respect to the manner in which ,,isa funders may furnish1 and consumer reporting agencies may report1 information regarding ,qualified ,i,s,as and income-share agreements4 #ejd4 ,application of the ,fair ,debt ,collection ,practices ,act 7a7 ,in general ,section #hjc of the ,fair ,debt ,collection ,practices ,act 7#ae ,u4,s4,c4 #afib;a7 is amended-- 7#a7 in paragraph 7#e71 by inserting 1 including a ,qualified ,,isa and an income-share agreement1 as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai before the period at the end2 and 7#b7 in paragraph 7#f71 in the first sentence1 by inserting 1 including an ,,isa funder1 as defined in section #b of the ,,isa ,student ,protection ,act of #bjai1 after means any person4 7b7 ,rule of construction ,nothing in this section1 or the amendments made by this section1 may be construed for purposes of any other ,federal law as considering-- 7#a7 ,qualified ,i,s,as or income-share agreements as debts2 or 7#b7 ,,isa funders as debt collectors4 #eje4 ,application of the ,military ,lending ,act ,section #ihg of title #aj1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7i7 as subsection 7j72 and 7#b7 by inserting after subsection 7h7 the following new subsection3 7i7 ,treatment of ,qualified ,i,s,as and income-,share agreements ,the ,secretary of ,defense shall issue regulations to apply this section to ,qualified ,i,s,as and income-share agreements 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai71 and a ,qualified ,,isa and an income-share agreement shall be deemed to meet the annual percentage rate of interest limitation under subsection 7b7 if the ,qualified ,,isa or income-share agreement1 as applicable1 would meet the requirements of section #ajb7;a77#f7 of such ,act 7related to appropriate risk sharing7 but with reference to the rate specified in subsection 7b74 4 #ejf4 ,application of the ,servicemembers ,civil ,relief ,act ,section #bjg of the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 #cicg7 is amended by adding at the end the following3 7f7 ,treatment of ,qualified ,i,s,as and income-,share agreements ,the ,secretary of ,defense shall issue regulations to apply this section to ,qualified ,i,s,as and income-share agreements 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjai71 specifically by stating that a ,qualified ,,isa and an income-share agreement shall be considered to have met the requirements of this section if the ,qualified ,,isa or income-share agreement1 as applicable1 would meet the requirements of section #ajb7;a77#f7 of such ,act 7relating to appropriate risk sharing7 but with reference to the rate specified in subsection 7a77#a74 4 #ejg4 ,rulemaking ,not later than #ahj days after the date of enactment of this ,act-- 7#a7 the ,director of the ,bureau of ,consumer ,financial ,protection1 in consultation with such other agency heads as the ,director considers appropriate1 shall issue regulations to carry out the amendments made by sections #eja1 #ejb1 and #ejc2 and 7#b7 the ,secretary of ,defense shall issue regulations to carry out the amendments made by sections #eje and #ejf4 ,,vi ,treatment ,under ,other ,laws #fja4 ,insurance and wagering ,a ,qualified ,,isa and an income-share agreement shall not be treated as a contract for insurance or a betting or wagering contract under any ,federal or ,state law4 #fjb4 ,payments not considered prepayments ,with respect to a ,qualified ,,isa or an income-share agreement1 any requirement that an individual pay an amount greater than the income-share funding in order to extinguish the ,qualified ,,isa obligation or income-share agreement1 as applicable1 earlier than the end of the term shall not be subject to any ,federal or ,state law with respect to prepayment penalties4 ,,vii ,reporting ,requirement for the ,bureau of ,consumer ,financial ,protection #gja4 ,report ,not less than frequently than once every #e years1 the ,director of the ,bureau of ,consumer ,financial ,protection shall submit to ,congress a report that includes-- 7#a7 information on the prevalence and utilization of ,qualified ,i,s,as and income-share agreements2 and 7#b7 any other information pertaining to ,qualified ,i,s,as and income-share agreements that the ,director determines is appropriate4