,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #baad  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ae1 #bjai,mr4   
,"y 7= himself1 ,mr4 ,w>n]1 ,mr4 ,rubio1
 & ,mr4 ,coons7 introduc$ ! foll[+ bill2
 :i* 0 read twice & ref]r$ to !         
,committee on ,f9ance  ,a ,,bill  ,to   
provide ! legal framework & income tax  
treatm5t necess>y = ! gr[? ( innovative 
private f9anc+ options1 & = o!r         
purposes4  #a4 ,%ort title2 table (     
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,,isa ,/ud5t ,protection    
,act ( #bjai4  7b7 ,table ( cont5ts ,!  
table ( cont5ts = ?is ,act is z foll[s3 
,sec4 #a4 ,%ort title2 table ( cont5ts4 
,sec4 #b4 ,def9itions4 ,,title ,i--,tax 
,treatm5t ( a ,qualifi$ ,,isa ,sec4     
#aja4 ,tax treatm5t ( proce$s & paym5ts 
( future income4 ,sec4 #ajb4 ,t]ms &    
conditions ( ,qualifi$ ,i,s,as4 ,sec4   
#ajc4 ,rulemak+2 model disclosure =ms4  
,sec4 #ajd4 ,tru? 9 ,l5d+ ,act4 ,sec4   
#aje4 ,cons5t to cont9u+ release (      
taxpay] in=mation "u ,qualifi$ ,i,s,as &

 income-%>e agreem5ts4 ,,title          
,,ii--,treatm5t ( a ,qualifi$ ,,isa ,"u 
,/ate ,law ,sec4 #bja4 ,lawfulness (    
contracts2 preemption ( ,/ate law4 ,sec4
 #bjb4 ,preemption ( ,/ate law ) respect
 to usury4 ,sec4 #bjc4 ,preemption (    
pre-exi/+ ,/ate laws ) respect to       
ability-to-repay & lic5s+ laws4 ,,title 
,,iii--,f$]al ,individual ,assi/ance    
,treatm5t ( a ,qualifi$ ,,isa ,sec4     
#cja4 ,proce$s n treat$ z income 9      
calculation ( f9ancial ne$ "u ! ,high]  
,education ,act ( #aife4 ,,title        
,,iv--,treatm5t ,"u ,securities ,laws   
,sec4 #dja4 ,qualifi$ ,i,s,as n treat$ z
 securities4 ,sec4 #djb4 ,bus9esses mak+
 ,qualifi$ ,i,s,as exclud$ f inve/m5t   
company treatm5t4 ,,title ,v--,treatm5t 
,"u ,f$]al ,consum] ,f9ance ,laws ,sec4 
#eja4 ,qualifi$ ,,isa anti-discrim9ation
 protections4 ,sec4 #ejb4 ,prohibition  
on requir+ preau?oriz$ electronic fund  
transf]s4 ,sec4 #ejc4 ,treatm5t "u !    
,fair ,cr$it ,report+ ,act4 ,sec4 #ejd4 
,application ( ! ,fair ,debt ,collection

 ,practices ,act4 ,sec4 #eje4           
,application ( ! ,milit>y ,l5d+ ,act4   
,sec4 #ejf4 ,application ( !            
,s]vicememb]s ,civil ,relief ,act4 ,sec4
 #ejg4 ,rulemak+4 ,,title               
,,vi--,treatm5t ,"u ,o!r ,laws ,sec4    
#fja4 ,insurance & wag]+4 ,sec4 #fjb4   
,paym5ts n consid]$ prepaym5ts4 ,,title 
,,vii--,report+ ,requirem5t = ! ,bureau 
( ,consum] ,f9ancial ,protection ,sec4  
#gja4 ,report4  #b4 ,def9itions ,=      
purposes ( ?is ,act3 7#a7 ,comp>able    
loan ,! t]m comp>able loan means1 )     
respect to a ,qualifi$ ,,isa1 a loan t--
  7,a7 has an orig9al pr9cipal am\nt su*
 t1 aft] any orig9ation fees on ! loan  
are paid1 ! am\nt ( loan f9anc+ receiv$ 
by ! individual is equal to ! total     
am\nt ( fund+ provid$ "u ! ,qualifi$    
,,isa to or on behalf ( ! individual    
subject to ! ,qualifi$ ,,isa2  7,b7 has 
! same disbursem5t or fund+ date1 paym5t
 />t date1 & numb] ( requir$ mon?ly     
paym5ts2 &  7,c7 is fully amortiz$ ov]  
su* t]m ) mon?ly paym5ts ( pr9cipal &   

int]e/4  7#b7 ,income-%>e agreem5t ,!   
t]m income-%>e agreem5t means an        
agreem5t--  7,a7 betwe5 an individual & 
an ,,isa fund]2  7,b7 "u :i*--  7i7 !   
,,isa fund] cr$its t[>ds ! tuition or   
o!r obligations (1 or pays am\nts to1 or
 on behalf (1 su* individual = co/s     
associat$ ) a po/second>y tra9+ program1
 or any o!r program design$ to increase 
! individual's human capital1           
employability1 or e>n+ pot5tial 7& n    
limit$ to programs eligible to          
p>ticipate z programs "u title ,,iv ( ! 
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajgj et seq4772 &  7ii7 su*  
individual pays to su* ,,isa fund] 7or !
 ,,isa fund]'s successor 9 int]e/7      
income-%>e paym5ts = a def9$ t]m2 &     
7,c7 is n a loan4  7#c7 ,income-%>e     
fund+ ,! t]m income-%>e fund+ means--   
7,a7 co/s associat$ ) a po/second>y     
tra9+ program1 or any o!r program       
design$ to increase ! individual's human
 capital1 employability1 or e>n+        
pot5tial 7& n limit$ to programs        

eligible to p>ticipate z programs "u    
title ,,iv ( ! ,high] ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #ajgj et seq4772 & 
7,b7 an all[ance = books1 supplies1     
transportation1 & miscellane\s p]sonal  
exp5ses1 includ+ a reasonable all[ance  
=--  7i7 ! docum5t$ r5tal or pur*ase ( a
 p]sonal comput]2 or  7ii7 ! ref9anc+ ( 
debt us$ = ! co/s describ$ 9 ?is        
subp>agraph4  7#d7 ,income-%>e paym5t ,!
 t]m income-%>e paym5t means an am\nt   
equal to a specifi$ p]c5tage ( ! future 
income ( an individual4  7#e7 ,,isa     
fund] ,) respect to a ,qualifi$ ,,isa1 !
 t]m ,,isa fund] means ! p>ty to !      
,qualifi$ ,,isa :o-- 7,a7 cr$its t[>ds !
 tuition or o!r obligations (1 or pays  
am\nts to1 or on behalf (1 an individual
 solely = ! purposes specifi$ 9 p>agraph
 7#c77;,a77i72 &  7,b7 has ! "r to      
receive a specifi$ p]c5tage ( !         
individual's future income4  7#f7       
,qualifi$ ,,isa ,! t]m ,qualifi$ ,,isa  
means an agreem5t betwe5 an individual &
 an ,,isa fund] t--  7,a7 is n a loan1 b

 is an income-%>e agreem5t "u :i*-- 7i7 
! ,,isa fund] cr$its t[>ds ! tuition or 
o!r obligations (1 or pays am\nts to1 or
 on behalf (1 su* individual =          
income-%>e fund+2 &  7ii7 su* individual
 pays to su* ,,isa fund] 7or ! ,,isa    
fund]'s successor 9 int]e/72 &  7,b7    
meets ! requirem5ts ( subsections 7a7 & 
7b7 ( section #ajb4  7#g7 ,/ate ,! t]m  
,/ate means ! sev]al ,/ates ( ! ,unit$  
,/ates1 ! ,commonweal? ( ,pu]to ,rico1 !
 ,di/rict ( ,columbia1 ,guam1 ,am]ican  
,samoa1 ! ,virg9 ,isl&s1 ! gov]nm5t ( ! 
,nor!rn ,m>iana ,isl&s1 & ! ,tru/       
,t]ritory ( ! ,pacific ,isl&s4  7#h7    
,/ate law ,! t]m ,/ate law means-- 7,a7 
any law1 decision1 rule1 regulation1 or 
o!r action hav+ ! effect ( a law ( any  
,/ate or any political subdivision ( a  
,/ate1 or any ag5cy or in/rum5tality ( a
 ,/ate or political subdivision ( a     
,/ate2 &  7,b7 any law ( ! ,unit$ ,/ates
 applicable only to ! ,di/rict (        
,columbia4  ,i ,tax ,treatm5t ( a       
,qualifi$ ,,isa  #aja4 ,tax treatm5t (  

proce$s & paym5ts ( future income ,=    
purposes ( ! ,int]nal ,rev5ue ,code (   
#aihf3 7#a7 ,fund+ exclud$ f gross      
income ,9 ! case ( an individual1 gross 
income %all n include ! am\nt ( any     
income-%>e fund+ t is cr$it$ t[>d !     
tuition or o!r obligations (1 or paid to
 or on behalf (1 su* individual "u a    
,qualifi$ ,,isa4  7#b7 ,diff]5ce 9      
repaym5t n includ$ z gross income ,9 !  
case ( a ,qualifi$ ,,isa "u :i* !       
income-%>e fund+ exce$s ! total         
income-%>e paym5ts 79 any p]iod ov] !   
life ( ! contract71 ! individual's gross
 income %all n include ! am\nt ( su*    
excess4  7#c7 ,treatm5t ( paym5ts (     
future income ,! am\nt ( any income-%>e 
paym5ts "u a ,qualifi$ ,,isa %all be    
treat$-- 7,a7 fir/1 ) respect to s mu* (
 su* am\nt z does n exce$ ! income-%>e  
fund+ "u su* ,qualifi$ ,,isa1 z a       
recov]y ( inve/m5t 7) a correspond+     
r$uction 9 basis7 9 ! contract2 &  7,b7 
second1 z income on ! contract :i* is   
includible 9 gross income4  #ajb4 ,t]ms 

& conditions ( ,qualifi$ ,i,s,as  7a7   
,t]ms & conditions ,ea* ,qualifi$ ,,isa 
%all comply ) ! foll[+3  7#a7 ,specifi$ 
p]c5tage ( income  7,a7 ,9 g5]al ,!     
,qualifi$ ,,isa specifies ! p]c5tage (  
future income requir$ to be paid4  7,b7 
,maximum p]c5tage ,! maximum p]c5tage ( 
income an individual w\ld be requir$ to 
pay "u ! ,qualifi$ ,,isa %all n exce$   
#bj p]c5t1 & ! product ( su* p]c5tage & 
! numb] ( mon?ly paym5ts requir$ "u !   
,qualifi$ ,,isa divid$ by #ab %all n    
exce$ #b4be 7:i* figure is ! product (  
#g4e p]c5t & ! numb] ( ye>s 9 ! longe/  
all[able contract "u p>agraph           
7#d77;,a774  7#b7 ,def9ition ( income ,!
 ,qualifi$ ,,isa specifies ! def9ition (
 income to be us$ = purposes ( calculat+
 an individual's obligation to pay "u ! 
,qualifi$ ,,isa1 :i*--  7,a7 %all n 9   
any case include ! income ( !           
individual's *ildr52  7,b7 %all n       
include--  7i7 any am\nt paid to !      
individual "u title ,,ii or ,,xvi ( !   
,social ,security ,act 7#db ,u4,s4,c4   

#dja et seq41 #acha et seq47 or "u a    
,/ate program fund$ title ,,iv "u ( su* 
,act 7#db ,u4,s4,c4 #fja et seq472 or   
7ii7 any am\nt receiv$ by ! individual  
"u ! ,*ild ,nutrition ,act ( #aiff 7#db 
,u4,s4,c4 #agga et seq472  7,c7 %all    
include rev5ue s\rces prim>ily incurr$ f
 an individual's employm5t2 &  7,d7 may 
include ano!r rev5ue s\rce besides      
employm5t if an individual has          
volunt>ily *os5 to n seek employm5t & is
 /ill receiv+ significant rev5ue f ano!r
 s\rce4  7#c7 ,af=dability = l[         
aft]-s*ool income  7,a7 ,9 g5]al ,!     
,qualifi$ ,,isa provides t :5 an        
individual subject to ! ,qualifi$ ,,isa 
has an income t is equal to or bel[ !   
?re%old am\nt describ$ 9 subp>agraph    
7,b71 ! p]c5tage ( income obligation = !
 individual is z]o4  7,b7 ,?re%old am\nt
 ,! ?re%old am\nt "u ?is subp>agraph is 
an am\nt equal to 7or at ! option ( !   
,,isa fund]1 great] ?an7--  7i7 #bjj    
p]c5t ( ! pov]ty l9e = a s+le p]son 7z  
def9$ 9 section #fgc ( ! ,community     

,s]vices ,block ,grant ,act 7#db        
,u4,s4,c4 #iijb772 or  7ii7 9 ! case ( a
 ,qualifi$ ,,isa ent]$ into be=e ,janu>y
 #a1 #bjbj1 #aej p]c5t ( su* pov]ty l9e 
= a s+le p]son4  7,c7 ,all[ance ( fees  
or nom9al paym5ts ,subp>agraph 7,a7 %all
 n be int]pret$ to preclude ! *>g+ (    
fees or nom9al paym5ts 7z describ$ 9    
p>agraph 7#h77 dur+ ?is p]iod4  7#d7    
,specifi$ duration2 ext5sion ( p]iod    
7,a7 ,duration ,! ,qualifi$ ,,isa       
specifies ! maximum p]iod ( "t dur+ :i* 
! individual w be obligat$ to make a    
specifi$ numb] ( mon?ly paym5ts ( a     
p]c5tage ( ! individual's future income 
7exclud+ p]iods :5 j a nom9al paym5t 7z 
describ$ "u p>agraph 7#h77 is requir$71 
:i* may n 7except z provid$ 9           
subp>agraph 7,b77 exce$ #cfj mon?s4     
7,b7 ,ext5sion ( p]iod ,! ,qualifi$     
,,isa may provide = ! ext5sion ( su*    
p]iod by ! numb] ( mon?s dur+ :i* !     
individual's p]c5tage ( income          
obligation 7exclud+ nom9al paym5ts &    
fees7 0 z]o4  7#e7 ,e>ly t]m9ation ,!   

,qualifi$ ,,isa specifies ! t]ms &      
conditions "u :i* ! individual subject  
to ! agreem5t may t]m9ate ! agreem5t4   
7#f7 ,appropriate risk %>+ ,! paym5ts   
requir$ "u ! ,qualifi$ ,,isa = an       
individual ) income dur+ ! paym5t t]m t 
is less ?an or equal to #bbe p]c5t ( !  
pov]ty l9e = a s+le p]son 7z def9$ 9    
section #fgc ( ! ,community ,s]vices    
,block ,grant ,act 7#db ,u4,s4,c4       
#iijb77 %all n exce$ ! paym5ts on a     
comp>able loan t be>s int]e/ at a rate  
less ?an or equal to ! annual p]c5tage  
rate ( int]e/ limitation "u section     
#ihg7;b7 ( title #aj1 ,unit$ ,/ates     
,code4  7#g7 ,aggregate limitation on   
obligation ,! ,qualifi$ ,,isa provides t
 ! total p]c5tage ( future income ( !   
individual t ! individual agrees to pay1
 "u ! curr5t ,qualifi$ ,,isa & any o!r  
,qualifi$ ,i,s,as previ\sly ent]$ into  
by ! individual1 %all n exce$ #bj p]c5t4
  7#h7 ,nom9al paym5ts ,! ,qualifi$     
,,isa specifies any nom9al mon?ly paym5t
 t is requir$ dur+ p]iods :5 !          

individual subject to ! ,qualifi$ ,,isa 
has no p]c5tage ( income obligation1    
except t--  7,a7 su* nom9al mon?ly      
paym5t %all n exce$ tw5ty-five doll>s p]
 mon? 7adju/$ ea* ye> to reflect *anges 
9 ! ,consum] ,price ,index = ,all ,urban
 ,consum]s publi%$ by ! ,bureau ( ,labor
 ,/ati/ics ( ! ,dep>tm5t ( ,labor = !   
mo/ rec5t #ab-mon? p]iod = :i* ! data   
are available72 &  7,b7 ! total numb] ( 
nom9al paym5ts t may be requir$ %all n  
exce$ ! maximum numb] ( all[able paym5ts
 describ$ 9 p>agraph 7#d77;,a74  7#i7   
,protections  7,a7 ,9 g5]al ,! ,qualifi$
 ,,isa specifies1 at a m9imum1          
individual rights ) respect to ea* ( !  
foll[+3 7i7 ,default or del9qu5cy4  7ii7
 ,ov]paym5t or und]paym5t4  7iii7       
,disability4  7iv7 ,dea?4  7v7 ,s]vice z
 a memb] ( ! arm$ s]vices 7includ+ !    
,national ,gu>d & ,res]ves74  7,b7      
,prior ,i,s,as ,if a ,qualifi$ ,,isa    
execut$ prior to ! date ( enactm5t ( ?is
 ,act does n meet ! requirem5ts 9       
subp>agraph 7,a71 ! ,,isa fund] %all    

come into compliance ) su* subp>agraph  
by issu+1 n lat] ?an #ahj days aft] !   
date ( enactm5t ( ?is ,act1 an add5dum  
to ! ,qualifi$ ,,isa t conta9s !        
in=mation describ$ 9 su* subp>agraph4   
7b7 ,requir$ disclosures  7#a7 ,9 g5]al 
,an ,,isa fund] ( a ,qualifi$ ,,isa %all
 provide1 to any individual int5d+ to   
commit "u a ,qualifi$ ,,isa to pay      
future income & be=e ! individual ent]s 
into ! agreem5t "u ! ,qualifi$ ,,isa1 a 
writt5 docum5t t cle>ly & simply        
discloses--  7,a7 t ! ,qualifi$ ,,isa is
 n cr$it or a loan1 & t ! am\nt !       
individual w be requir$ to pay "u !     
,qualifi$ ,,isa--  7i7 may be m or less 
?an ! am\nt provid$ to ! individual     
pursuant to ! ,qualifi$ ,,isa2 &  7ii7 w
 v>y 9 proportion to ! individual's     
future income2  7,b7 t ! obligations ( !
 individual "u ! ,qualifi$ ,,isa are    
dis*>geable "u bankruptcy law2  7,c7 a  
description ( ! t]ms 9 :i* ! obligations
 ( ! individual "u ! ,qualifi$ ,,isa    
%all be ext+ui%$ 9 advance ( full       

duration ( ! agre$-to t]m2  7,d7 !      
duration ( ! individual's obligations "u
 ! ,qualifi$ ,,isa 7abs5t su*           
ext+ui%m5t71 includ+ any circum/ances "u
 :i* ! duration ( ! ,qualifi$ ,,isa w\ld
 be ext5d$ or ext+ui%$2  7,e7 ! p]c5tage
 ( income ! individual is committ+ to   
pay "u ! ,qualifi$ ,,isa1 includ+ :e!r !
 p]c5tage ( income is fix$ or v>iable "u
 ! ,qualifi$ ,,isa1 & ! m9imum am\nt (  
annual income t trigg]s ! individual's  
obligation "u ! ,qualifi$ ,,isa to make 
paym5ts = su* ye>2  7,f7 ! def9ition (  
income to be us$ = purposes ( calculat+ 
! individual's obligation "u ! ,qualifi$
 ,,isa2  7,g7 7i7 a comp>ison (-- 7,i7 !
 am\nts & numb] ( paym5ts an individual 
w\ld be requir$ to pay "u ! ,qualifi$   
,,isa at a range ( annual income levels1
 :i* income levels %all correspond to ! 
levels ! individual might reasonably be 
expect$ to make giv5 ! int5d$ use ( !   
funds provid$ "u ! ,qualifi$ ,,isa1 z   
det]m9$ 9 accordance ) guidance issu$ by
 ! ,director ( ! ,bureau ( ,consum]     

,f9ancial ,protection2 to  7,,ii7 !     
am\nts & numb] ( paym5ts requir$ to be  
paid "u "o or m comp>able loans1        
includ+1 at a m9imum--  7aa7 a loan at a
 fix$ or v>iable int]e/ rate & ) a numb]
 ( paym5ts det]m9$ by ! ,director ( !   
,bureau ( ,consum] ,f9ancial ,protection
 to be an approximation ( ! fix$ or     
v>iable int]e/ rate available to /ud5t  
loan borr[]s 9 ! private m>ketplace2 &  
7bb7 a comp>able ,f$]al ,direct ,,plus  
loan "u "p ,d ( title ,,iv ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq471 if ! individual w\ld  
be eligible = su* a loan2 &  7ii7 a     
prom95t notice accompany+ ! comp>ison t 
cle>ly & conspicu\sly advises t loan    
paym5ts may be requir$ reg>dless ( !    
income ( an individual2  7,h7 income    
v]ification docum5tation1 includ+       
p]sonal tax records submitt$ to !       
,int]nal ,rev5ue ,s]vice1 t ! individual
 may be requir$ to provide "u !         
,qualifi$ ,,isa2  7,i7 int5t to conduct 
annual reconciliation relat+ to         

obligations ow$ by ! individual "u !    
,qualifi$ ,,isa2 &  7,j7 any nom9al     
paym5ts1 z describ$ 9 subsection        
7a77#h71 requir$ "u ! ,qualifi$ ,,isa4  
7#b7 ,no o!r mat]ial t]ms ,! ,qualifi$  
,,isa disclosures requir$ by p>agraph   
7#a7 %all be provid$ 9 a cle> &         
conspicu\s mann]1 & %all n be disclos$  
toge!r ) any o!r mat]ial t]ms or        
conditions t may be applicable to !     
,qualifi$ ,,isa4  7c7 ,non-,int]f]5ce ,a
 ,qualifi$ ,,isa repres5ts an obligation
 by ! individual to pay ! specific      
p]c5tage ( future income1 b %all n be   
con/ru$ to give ! contract hold] any    
rights ov] an individual's actions o!r  
?an z provid$ 9 ?is ,act4  7d7 ,effect (
 failure ,to provide docum5tation  7#a7 
,9 g5]al ,abs5t income docum5tation f an
 individual "u a ,qualifi$ ,,isa1 !     
,,isa fund] ( su* ,qualifi$ ,,isa 7or ! 
fund]'s successor 9 int]e/7 may assume a
 c]ta9 mon?ly income level = !          
individual1 up to ! great] (--  7,a7 !  
level t w\ld create an obligation t is  

approximately equal to ! am\nt requir$  
to return ! initial ,qualifi$ ,,isa     
am\nt to ! ,,isa fund] ov] ! rema9+     
requir$ paym5ts2 or  7,b7 ! av]age      
mon?ly income = ! individual f ! previ\s
 #f mon?s ( employm5t4  7#b7 ,treatm5t  
"u ,/ate law ,any obligation result+ f  
an assum$ income level "u p>agraph 7#a7 
%all n be consid]$ to be impos+ an      
unlawful fee "u a ,/ate law unless su*  
,/ate law expressly /ates t x is int5d$ 
to apply to ,qualifi$ ,i,s,as4  7#c7    
,v]ification ( income ,if an individual 
supplies an ,,isa fund] 7or ! fund]'s   
successor 9 int]e/7 ) ! individual's    
income v]ification in=mation )9 #ahj    
days ( ! ,,isa fund] 7or ! fund]'s      
successor 9 int]e/7 assum+ an income    
level = su* individual "u p>agraph 7#a71
 ! individual %all be entitl$ to h any  
paym5ts t 7 made 9 excess ( !           
individual's actual obligation "u !     
contract ei!r refund$ to ! individual or
 cr$it$ to future obligations "u !      
,qualifi$ ,,isa4  #ajc4 ,rulemak+2 model

 disclosure =ms  7a7 ,no ,bureau g5]al  
rulemak+ au?ority ,except z provid$ "u  
subsection 7b7 & section                
#ajb7;b77#a77;,g71 ! ,director ( !      
,bureau ( ,consum] ,f9ancial ,protection
 may n issue regulations "u ?is title or
 pursuant to any o!r au?ority grant$ to 
! ,bureau ( ,consum] ,f9ancial          
,protection "u ! ,dodd-,frank ,wall     
,/reet ,re=m & ,consum] ,protection ,act
 7,public ,law #aaa-bjc74  7b7 ,model   
disclosure =ms  7#a7 ,9 g5]al ,n lat]   
?an #ahj days aft] ! date ( ! enactm5t (
 ?is ,act1 ! ,director ( ! ,bureau (    
,consum] ,f9ancial ,protection1 aft]    
engag+ 9 appropriate consum] te/+ ( su* 
=ms1 %all promulgate a model disclosure 
=m = ! disclosures requir$ "u section   
#ajb7;b74  7#b7 ,safe h>bor ,any p]son  
:o uses ! model disclosure =m promulgat$
 pursuant to p>agraph 7#a7 & includes   
accurate in=mation requir$ "u section   
#ajb7;b7 %all be deem$ to be 9          
compliance ) ! disclosure requirem5ts "u
 section #ajb7;b7 & %all n be subject to

 any ,/ate law 7includ+ regulations7 to 
! ext5t t su* law imposes any additional
 or diff]+ disclosure requirem5ts4      
#ajd4 ,tru? 9 ,l5d+ ,act ,any ,qualifi$ 
,,isa %all n be consid]$ cr$it & ,,isa  
fund]s 7& _! successors 9 int]e/7 %all n
 be consid]$ cr$itors1 z ^? t]ms are    
def9$ 9 section #ajc ( ! ,tru? 9 ,l5d+  
,act 7#ae ,u4,s4,c4 #afjb74  #aje4      
,cons5t to cont9u+ release ( taxpay]    
in=mation "u ,qualifi$ ,i,s,as &        
income-%>e agreem5ts ,by n lat] ?an #ahj
 days aft] ! date ( enactm5t ( ?is ,act1
 ! ,secret>y ( ! ,treasury %all modify  
,treasury ,regulations & guidance to    
provide = cont9u+ cons5t to disclosure (
 an individual's return in=mation to an 
,,isa fund] 7or ! fund]'s successor 9   
int]e/7 "u a ,qualifi$ ,,isa or         
income-%>e agreem5t1 b only = p]iods    
relevant to1 & only to ! ext5t !        
,secret>y det]m9es is necess>y &        
appropriate 9 c>ry+ out ! t]ms (1 su*   
,qualifi$ ,,isa or income-%>e agreem5t4 
,,ii ,treatm5t ( a ,qualifi$ ,,isa ,"u  

,/ate ,law  #bja4 ,lawfulness (         
contracts2 preemption ( ,/ate law  7a7  
,9 g5]al ,a ,qualifi$ ,,isa %all be a   
valid1 b9d+1 & en=ceable contract       
not)/&+ any ,/ate law limit+ or o!rwise 
regulat+ assignm5ts ( future wages or   
o!r income4  7b7 ,good fai? reliance ,an
 ,,isa fund] may rely 9 good fai? on a  
/atem5t f ! individual obligat$ by a    
,qualifi$ ,,isa ) respect to su*        
individual's aggregate obligation on !  
,qualifi$ ,,isa4  #bjb4 ,preemption (   
,/ate law ) respect to usury ,a         
,qualifi$ ,,isa %all n be subject to    
,/ate law ) respect to usury1 cr$it1    
loans1 or cr$it or in/allm5t sales1     
unless su* ,/ate law expressly /ates t x
 is int5d$ to apply to ,qualifi$        
,i,s,as4  #bjc4 ,preemption ( pre-exi/+ 
,/ate laws ) respect to ability-to-repay
 & lic5s+ laws ,a ,qualifi$ ,,isa %all n
 be subject to a ,/ate law ) respect to 
ability-to-repay requirem5ts1 & nei!r an
 ,,isa fund] issu+ a ,qualifi$ ,,isa1   
its successor 9 int]e/1 nor any entity  

s]vic+ any ,qualifi$ ,,isa on behalf (  
an ,,isa fund] or its successor int]e/1 
%all be subject to any ,/ate law )      
respect to ,,isa lic5s+ or regi/ration1 
unless su* ,/ate law 0 issu$ aft] ! date
 ( ! enactm5t ( ?is ,act & su* ,/ate law
 expressly /ates t x is int5d$ to apply 
to ,qualifi$ ,i,s,as4  ,,iii ,f$]al     
,individual ,assi/ance ,treatm5t ( a    
,qualifi$ ,,isa  #cja4 ,proce$s n treat$
 z income 9 calculation ( f9ancial ne$  
"u ! ,high] ,education ,act ( #aife ,no 
portion ( any am\nts receiv$ by an      
individual = ent]+ into a ,qualifi$     
,,isa or an income-%>e agreem5t %all be 
includ$ z income or assets 9 !          
computation ( expect$ family            
contribution = any program fund$ 9 :ole 
or 9 "p "u ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajja et seq474    
,,iv ,treatm5t ,"u ,securities ,laws    
#dja4 ,qualifi$ ,i,s,as n treat$ z      
securities ,a ,qualifi$ ,,isa & an      
income-%>e agreem5t %all n be treat$ z a
 security = purposes ( ! securities laws

 7z def9$ 9 section #c7;a7 ( !          
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a7771 any simil> ,/ate  
law1 or any ,/ate law t directly or     
indirectly prohibits1 limits1 or imposes
 conditions1 bas$ on ! m]its ( an (f]+  
or issu] ( securities1 ^u ! (f] or sale 
( any security4 ,no?+ 9 ! prec$+ s5t5ce 
may be con/ru$ to prev5t an in/rum5t t  
is collat]aliz$ by1 or s]vic$ by ! ca%  
fl[s (1 a ,qualifi$ ,,isa f be+ treat$ z
 a security = purposes ( any law        
describ$ 9 t s5t5ce4  #djb4 ,bus9esses  
mak+ ,qualifi$ ,i,s,as exclud$ f        
inve/m5t company treatm5t ,section      
#c7;c7 ( ! ,inve/m5t ,company ,act (    
#aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77 is   
am5d$-- 7#a7 9 p>agraph 7#d71 by ins]t+ 
,qualifi$ ,i,s,as or income-%>e         
agreem5ts 7z ^? t]ms are def9$ 9 section
 #b ( ! ,,isa ,/ud5t ,protection ,act ( 
#bjai71 aft] indu/rial bank+12 &  7#b7 9
 p>agraph 7#e7-- 7,a7 by ins]t+ 1       
includ+ pur*as+ or o!rwise acquir+      
,qualifi$ ,i,s,as or income-%>e         

agreem5ts 7z ^? t]ms are def9$ 9 section
 #b ( ! ,,isa ,/ud5t ,protection ,act ( 
#bjai7 aft] s]vices ! fir/ place x      
appe>s2 &  7,b7 by ins]t+ 1 includ+ mak+
 ,qualifi$ ,i,s,as or income-%>e        
agreem5ts 7z s def9$7 aft] s]vices !    
second place x appe>s4  ,v ,treatm5t ,"u
 ,f$]al ,consum] ,f9ance ,laws  #eja4   
,qualifi$ ,,isa anti-discrim9ation      
protections ,! ,equal ,cr$it            
,opportunity ,act 7#ae ,u4,s4,c4 #afia  
et seq47 is am5d$--  7#a7 9 section     
#gja7;b7 7#ae ,u4,s4,c4 #afia7;b77--    
7,a7 9 ! matt] prec$+ p>agraph 7#a71 by 
ins]t+ or an ,,isa fund] or its         
successor 9 int]e/ aft] cr$itor2  7,b7 9
 p>agraph 7#d71 by /rik+ or at ! end2   
7,c7 9 p>agraph 7#e71 by /rik+ ! p]iod  
at ! end & ins]t+ 2 or2 &  7,d7 by add+ 
at ! end ! foll[+3  7#f7 to set ! t]ms (
 a ,qualifi$ ,,isa or an income-%>e     
agreem5t 7z ^? t]ms are def9$ 9 section 
#b ( ! ,,isa ,/ud5t ,protection ,act (  
#bjai71 bas$ on ! e>n+s reasonably      
anticipat$ by ! cr$itor ) respect to any

 program ( /udy1 c]tificate program1    
degree program1 or in/itutions ( high]  
education :]e a ,qualifi$ ,,isa is (f]$4
  2 &  7#b7 9 section #gjb 7#ae         
,u4,s4,c4 #afia;a7-- 7,a7 9 subsection  
7d71 by ins]t+ 1 or ! "r grant$ "u a    
,qualifi$ ,,isa or an income-%>e        
agreem5t 7z ^? t]ms are def9$ 9 section 
#b ( ! ,,isa ,/ud5t ,protection ,act (  
#bjai7 be=e ! p]iod at ! end2 &  7,b7 9 
subsection 7e7-- 7i7 by /rik+ or any    
assignee & ins]t+ any assignee2 &  7ii7 
by ins]t+ or any p]son :o regul>ly      
ext5ds1 r5ews1 or cont9ues fund+ "u a   
qualifi$ ,,isa or an income-%>e agreem5t
 7z ^? t]ms are def9$ 9 section #b ( !  
,,isa ,/ud5t ,protection ,act ( #bjai7  
be=e ! p]iod at ! end4  #ejb4           
,prohibition on requir+ preau?oriz$     
electronic fund transf]s ,section       
#iac7a7 ( ! ,electronic ,fund ,transf]  
,act 7#ae ,u4,s4,c4 #afick7#a77 is am5d$
 by ins]t+ or ! ent]+ into a ,qualifi$  
,,isa or an income-%>e agreem5t 7z ^?   
t]ms are def9$ 9 section #b ( ! ,,isa   

,/ud5t ,protection ,act ( #bjai7 ) a    
consum] aft] a consum]4  #ejc4 ,treatm5t
 "u ! ,fair ,cr$it ,report+ ,act  7a7 ,9
 g5]al ,section #fje ( ! ,fair ,cr$it   
,report+ ,act 7#ae ,u4,s4,c4 #afha;c7 is
 am5d$ by add+ at ! end ! foll[+3  7i7  
,qualifi$ ,,isa in=mation ,) respect to 
a ,qualifi$ ,,isa or an income-%>e      
agreem5t 7z ^? t]ms are def9$ 9 section 
#b ( ! ,,isa ,/ud5t ,protection ,act (  
#bjai71 a consum] report made by a      
consum] report+ ag5cy--  7#a7 may       
include a description ( ! contract t]ms 
( ! ,qualifi$ ,,isa or income-%>e       
agreem5t1 z applicable1 &1 subject to   
subsection 7a71 in=mation ) respect to  
am\nts t are ow$ "u ! ,qualifi$ ,,isa2 &
  7#b7 may n include any speculation    
ab\t future am\nts t may be ow$ "u !    
,qualifi$ ,,isa or income-%>e agreem5t1 
z applicable4  4  7b7 ,regulations ,!   
,director ( ! ,bureau ( ,consum]        
,f9ancial ,protection %all promulgate   
regulations ) respect to ! mann] 9 :i*  
,,isa fund]s may furni%1 & consum]      

report+ ag5cies may report1 in=mation   
reg>d+ ,qualifi$ ,i,s,as & income-%>e   
agreem5ts4  #ejd4 ,application ( ! ,fair
 ,debt ,collection ,practices ,act  7a7 
,9 g5]al ,section #hjc ( ! ,fair ,debt  
,collection ,practices ,act 7#ae        
,u4,s4,c4 #afib;a7 is am5d$-- 7#a7 9    
p>agraph 7#e71 by ins]t+ 1 includ+ a    
,qualifi$ ,,isa & an income-%>e         
agreem5t1 z ^? t]ms are def9$ 9 section 
#b ( ! ,,isa ,/ud5t ,protection ,act (  
#bjai be=e ! p]iod at ! end2 &  7#b7 9  
p>agraph 7#f71 9 ! fir/ s5t5ce1 by      
ins]t+ 1 includ+ an ,,isa fund]1 z def9$
 9 section #b ( ! ,,isa ,/ud5t          
,protection ,act ( #bjai1 aft] means any
 p]son4  7b7 ,rule ( con/ruction ,no?+ 9
 ?is section1 or ! am5dm5ts made by ?is 
section1 may be con/ru$ = purposes ( any
 o!r ,f$]al law z consid]+--  7#a7      
,qualifi$ ,i,s,as or income-%>e         
agreem5ts z debts2 or  7#b7 ,,isa fund]s
 z debt collectors4  #eje4 ,application 
( ! ,milit>y ,l5d+ ,act ,section #ihg ( 
title #aj1 ,unit$ ,/ates ,code1 is      

am5d$-- 7#a7 by r$esignat+ subsection   
7i7 z subsection 7j72 &  7#b7 by ins]t+ 
aft] subsection 7h7 ! foll[+ new        
subsection3  7i7 ,treatm5t ( ,qualifi$  
,i,s,as & income-,%>e agreem5ts ,!      
,secret>y ( ,def5se %all issue          
regulations to apply ?is section to     
,qualifi$ ,i,s,as & income-%>e agreem5ts
 7z ^? t]ms are def9$ 9 section #b ( !  
,,isa ,/ud5t ,protection ,act ( #bjai71 
& a ,qualifi$ ,,isa & an income-%>e     
agreem5t %all be deem$ to meet ! annual 
p]c5tage rate ( int]e/ limitation "u    
subsection 7b7 if ! ,qualifi$ ,,isa or  
income-%>e agreem5t1 z applicable1 w\ld 
meet ! requirem5ts ( section            
#ajb7;a77#f7 ( su* ,act 7relat$ to      
appropriate risk %>+7 b ) ref]5ce to !  
rate specifi$ 9 subsection 7b74  4      
#ejf4 ,application ( ! ,s]vicememb]s    
,civil ,relief ,act ,section #bjg ( !   
,s]vicememb]s ,civil ,relief ,act 7#ej  
,u4,s4,c4 #cicg7 is am5d$ by add+ at !  
end ! foll[+3  7f7 ,treatm5t ( ,qualifi$
 ,i,s,as & income-,%>e agreem5ts ,!     

,secret>y ( ,def5se %all issue          
regulations to apply ?is section to     
,qualifi$ ,i,s,as & income-%>e agreem5ts
 7z ^? t]ms are def9$ 9 section #b ( !  
,,isa ,/ud5t ,protection ,act ( #bjai71 
specifically by /at+ t a ,qualifi$ ,,isa
 & an income-%>e agreem5t %all be       
consid]$ to h met ! requirem5ts ( ?is   
section if ! ,qualifi$ ,,isa or         
income-%>e agreem5t1 z applicable1 w\ld 
meet ! requirem5ts ( section            
#ajb7;a77#f7 ( su* ,act 7relat+ to      
appropriate risk %>+7 b ) ref]5ce to !  
rate specifi$ 9 subsection 7a77#a74  4  
#ejg4 ,rulemak+ ,n lat] ?an #ahj days   
aft] ! date ( enactm5t ( ?is ,act-- 7#a7
 ! ,director ( ! ,bureau ( ,consum]     
,f9ancial ,protection1 9 consultation ) 
su* o!r ag5cy heads z ! ,director       
consid]s appropriate1 %all issue        
regulations to c>ry out ! am5dm5ts made 
by sections #eja1 #ejb1 & #ejc2 &  7#b7 
! ,secret>y ( ,def5se %all issue        
regulations to c>ry out ! am5dm5ts made 
by sections #eje & #ejf4  ,,vi ,treatm5t

 ,"u ,o!r ,laws  #fja4 ,insurance &     
wag]+ ,a ,qualifi$ ,,isa & an income-%>e
 agreem5t %all n be treat$ z a contract 
= insurance or a bett+ or wag]+ contract
 "u any ,f$]al or ,/ate law4  #fjb4     
,paym5ts n consid]$ prepaym5ts ,)       
respect to a ,qualifi$ ,,isa or an      
income-%>e agreem5t1 any requirem5t t an
 individual pay an am\nt great] ?an !   
income-%>e fund+ 9 ord] to ext+ui% !    
,qualifi$ ,,isa obligation or income-%>e
 agreem5t1 z applicable1 e>li] ?an ! end
 ( ! t]m %all n be subject to any ,f$]al
 or ,/ate law ) respect to prepaym5t    
p5alties4  ,,vii ,report+ ,requirem5t = 
! ,bureau ( ,consum] ,f9ancial          
,protection  #gja4 ,report ,n less ?an  
frequ5tly ?an once e #e ye>s1 !         
,director ( ! ,bureau ( ,consum]        
,f9ancial ,protection %all submit to    
,congress a report t includes--  7#a7   
in=mation on ! preval5ce & utilization (
 ,qualifi$ ,i,s,as & income-%>e         
agreem5ts2 &  7#b7 any o!r in=mation    
p]ta9+ to ,qualifi$ ,i,s,as & income-%>e

 agreem5ts t ! ,director det]m9es is    
appropriate4