,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bahd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ah1 #bjai,mr4   
,durb9 7= himself1 ,mr4 ,re$1 ,mr4      
,br[n1 ,mr4 ,c>d91 ,ms4 ,baldw91 & ,ms4 
,smi?7 introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,tru? 9 ,l5d+ ,act & 
! ,high] ,education ,act ( #aife to     
require c]ta9 cr$itors to obta9         
c]tifications f in/itutions ( high]     
education1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,"k     
,be=e ,y ,owe ,private ,education ,loan 
,act ( #bjai4  #b4 ,am5dm5ts to ! ,tru? 
9 ,l5d+ ,act  7a7 ,9 g5]al ,section     
#abh7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae    
,u4,s4,c4 #afch7;e77 is am5d$--  7#a7 by
 /rik+ p>agraph 7#c7 & ins]t+ ! foll[+3 
7#c7 ,in/itutional c]tification requir$ 
7,a7 ,9 ,g5]al ,except z provid$ 9      
subp>agraph 7,b71 be=e a cr$itor may    
issue any funds ) respect to an ext5sion
 ( cr$it describ$ 9 ?is subsection1 !   

cr$itor %all obta9 f ! relevant         
in/itution ( high] education :]e su*    
loan is to be us$ = a /ud5t1 su*        
in/itution's c]tification (--  7i7 !    
enrollm5t /atus ( ! /ud5t2  7ii7 !      
/ud5t's co/ ( att5dance at ! in/itution 
z det]m9$ by ! in/itution "u "p ,f (    
title ,,iv ( ! ,high] ,education ,act ( 
#aife2 &  7iii7 ! diff]5ce betwe5--     
7,i7 su* co/ ( att5dance2 &  7,,ii7 !   
/ud5t's e/imat$ f9ancial assi/ance1     
includ+ su* assi/ance receiv$ "u title  
,,iv ( ! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajgj et seq47 & o!r     
f9ancial assi/ance kn[n to ! in/itution1
 z applicable4  7,b7 ,exception ,not)/&+
 subp>agraph 7,a71 a cr$itor may issue  
funds ) respect to an ext5sion ( cr$it  
describ$ 9 ?is subsection )\t obta9+ f !
 relevant in/itution ( high] education  
su* in/itution's c]tification if su*    
in/itution fails to provide )9 #ae      
bus9ess days ( ! cr$itor's reque/ = su* 
c]tification--  7i7 notification ( !    
in/itution's refusal to c]tify ! reque/2

 or  7ii7 notification t ! in/itution   
has receiv$ ! reque/ = c]tification & w 
ne$ additional "t to comply ) !         
c]tification reque/4  7,c7 ,loans       
,disburs$ ,)\t ,c]tification ,if a      
cr$itor issues funds )\t obta9+ a       
c]tification1 z describ$ 9 subp>agraph  
7,b71 su* cr$itor %all report ! issuance
 ( su* funds 9 a mann] det]m9$ by !     
,director ( ! ,consum] ,f9ancial        
,protection ,bureau4  2  7#b7 by        
r$esignat+ p>agraphs 7#i71 7#aj71 &     
7#aa7 z p>agraphs 7#aj71 7#aa71 & 7#ab71
 respectively2 &  7#c7 by ins]t+ aft]   
p>agraph 7#h7 ! foll[+3  7#i7 ,provision
 ( in=mation  7,a7 ,provision (         
,in=mation to ,/ud5ts  7i7 ,loan        
,/atem5t ,a cr$itor t issues any funds )
 respect to an ext5sion ( cr$it describ$
 9 ?is subsection %all s5d loan         
/atem5ts1 :]e su* loan is to be us$ = a 
/ud5t1 to borr[]s ( su* funds n less ?an
 once e #c mon?s dur+ ! "t t su* /ud5t  
is enroll$ at an in/itution ( high]     
education4  7ii7 ,cont5ts ( ,loan       

,/atem5t ,ea* /atem5t describ$ 9 clause 
7i7 %all--  7,i7 report ! borr[]'s total
 rema9+ debt to ! cr$itor1 includ+      
accru$ b unpaid int]e/ & capitaliz$     
int]e/2  7,,ii7 report any debt         
increases s9ce ! la/ /atem5t2 &  7,,iii7
 li/ ! curr5t int]e/ rate = ea* loan4   
7,b7 ,notification ( loans disburs$ )\t 
c]tification ,on or be=e ! date a       
cr$itor issues any funds ) respect to an
 ext5sion ( cr$it describ$ 9 ?is        
subsection1 ! cr$itor %all notify !     
relevant in/itution ( high] education1 9
 writ+1 ( ! am\nt ( ! ext5sion ( cr$it &
 ! /ud5t on ^: behalf cr$it is ext5d$4  
,! =m ( su* writt5 notification %all be 
subject to ! regulations ( ! ,bureau4   
7,c7 ,annual ,report ,a cr$itor t issues
 funds ) respect to an ext5sion ( cr$it 
describ$ 9 ?is subsection %all prep>e & 
submit an annual report to ! ,bureau    
conta9+ ! requir$ in=mation ab\t private
 /ud5t loans to be det]m9$ by !         
,director ( ! ,bureau1 9 consultation ) 
! ,secret>y ( ,education4  4  7b7       

,def9ition ( ,private ,education ,loan  
,section #adj7;a77#h77;,a7 ( ! ,tru? 9  
,l5d+ ,act 7#ae ,u4,s4,c4               
#afej7;a77#h77;,a77 is am5d$--  7#a7 by 
r$esignat+ clause 7ii7 z clause 7iii72  
7#b7 9 clause 7i71 by /rik+ & aft] !    
semicolon2 &  7#c7 by add+ aft] clause  
7i7 ! foll[+3  7ii7 is n made1 insur$1  
or gu>ante$ "u title ,,vii or title     
,,viii ( ! ,public ,heal? ,s]vice ,act  
7#db ,u4,s4,c4 #bib et seq4 & #bif et   
seq472 &  4  7c7 ,regulations ,n lat]   
?an #cfe days aft] ! date ( enactm5t (  
?is ,act1 ! ,director ( ! ,consum]      
,f9ancial ,protection ,bureau %all issue
 regulations 9 f9al =m to implem5t      
p>agraphs 7#c7 & 7#i7 ( section #abh7;e7
 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4  
#afch7;e771 z am5d$ by subsection 7a74  
,su* regulations %all become effective n
 lat] ?an #f mon?s aft] _! date (       
issuance4  #c4 ,am5dm5t to ! ,high]     
,education ,act ( #aife  7a7 ,am5dm5t to
 ! ,high] ,education ,act ( #aife       
,section #dhg7;a7 ( ! ,high] ,education 

,act ( #aife 7#bj ,u4,s4,c4 #ajid7;a77  
is am5d$ by /rik+ p>agraph 7#bh7 &      
ins]t+ ! foll[+3  7#bh7 7,a7 ,^u !      
reque/ ( a private educational l5d]1    
act+ 9 connection ) an application      
initiat$ by a borr[] = a private        
education loan 9 accordance ) section   
#abh7;e77#c7 ( ! ,tru? 9 ,l5d+ ,act1 !  
in/itution %all )9 #ae days ( receipt ( 
! reque/--  7i7 provide c]tification to 
su* private educational l5d]-- 7,i7 t ! 
/ud5t :o initiat$ ! application = !     
private education loan1 or on ^: behalf 
! application 0 initiat$1 is enroll$ or 
is s*$ul$ to enroll at ! in/itution2    
7,,ii7 ( su* /ud5t's co/ ( att5dance at 
! in/itution z det]m9$ "u "p ,f ( ?is   
title2 &  7,,iii7 ( ! diff]5ce betwe5-- 
7aa7 ! co/ ( att5dance at ! in/itution2 
&  7bb7 ! /ud5t's e/imat$ f9ancial      
assi/ance receiv$ "u ?is title & o!r    
assi/ance kn[n to ! in/itution1 z       
applicable2  7ii7 notify ! cr$itor t !  
in/itution has receiv$ ! reque/ =       
c]tification & w ne$ additional "t to   

comply ) ! c]tification reque/2 or      
7iii7 provide notice to ! private       
educational l5d] ( ! in/itution's       
refusal to c]tify ! private education   
loan pursuant to subp>agraph 7,d74  7,b7
 ,) respect to a c]tification reque/    
describ$ 9 subp>agraph 7,a71 & prior to 
provid+ su* c]tification "u subp>agraph 
7,a77i7 or provid+ notice ( ! refusal to
 provide c]tification "u subp>agraph    
7,a77iii71 ! in/itution %all--  7i7     
det]m9e :e!r ! /ud5t :o initiat$ !      
application = ! private education loan1 
or on ^: behalf ! application 0         
initiat$1 has appli$ = & exhau/$ !      
,f$]al f9ancial assi/ance available to  
su* /ud5t "u ?is title & in=m ! /ud5t   
accord+ly2 &  7ii7 provide ! borr[] ^:  
loan application has prompt$ !          
c]tification reque/ by a private        
educational l5d]1 z describ$ 9          
subp>agraph 7,a77i71 ) ! foll[+         
in=mation & disclosures3  7,i7 ,! am\nt 
( additional ,f$]al /ud5t assi/ance =   
:i* ! borr[] is eligible & ! advantages 

( ,f$]al loans "u ?is title1 includ+    
disclosure ( ! fix$ int]e/ rates1       
def]m5ts1 flexible repaym5t options1    
loan =giv5ess programs1 & additional    
protections1 & ! high] /ud5t loan limits
 = dep5d5t /ud5ts ^: p>5ts are n        
eligible = a ,f$]al ,direct ,,plus      
,loan4  7,,ii7 ,! borr[]'s ability to   
select a private educational l5d] ( !   
borr[]'s *oice4  7,,iii7 ,! impact ( a  
propos$ private education loan on !     
borr[]'s pot5tial eligibility = o!r     
f9ancial assi/ance1 includ+ ,f$]al      
f9ancial assi/ance "u ?is title4  7,,iv7
 ,! borr[]'s "r to accept or reject a   
private education loan )9 ! #cj-;day    
p]iod foll[+ a private educational      
l5d]'s approval ( a borr[]'s application
 & ab\t a borr[]'s #c-;day "r to cancel 
p]iod4  7,c7 ,= purposes ( ?is p>agraph1
 ! t]ms private educational l5d] &      
private education loan h ! mean+s giv5  
su* t]ms 9 section #adj ( ! ,tru? 9     
,l5d+ ,act 7#ae ,u4,s4,c4 #afej74  4    
7b7 ,effective date ,! am5dm5t made by  

subsection 7a7 %all take effect on !    
effective date ( ! regulations describ$ 
9 section #b7;c74  7c7 ,pref]r$ l5d]    
arrangem5t ,section #aea7h77;,a77ii7 ( !
 ,high] ,education ,act ( #aife 7#bj    
,u4,s4,c4 #ajai7h77;,a77ii77 is am5d$ by
 ins]t+ c]tify+1 aft] promot+14  #d4    
,report  7a7 ,9 g5]al ,n lat] ?an #bd   
mon?s aft] ! issuance ( regulations "u  
section #b7;c71 ! ,director ( ! ,consum]
 ,f9ancial ,protection ,bureau & !      
,secret>y ( ,education %all jo9tly      
submit to ,congress a report on !       
compliance (--  7#a7 private educational
 l5d]s ) section #abh7;e77#c7 ( ! ,tru? 
9 ,l5d+ ,act 7#ae ,u4,s4,c4             
#afch7;e77#c771 z am5d$ by section #b2 &
  7#b7 in/itutions ( high] education )  
section #dhg7;a77#bh7 ( ! ,high]        
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajid7;a77#bh771 z am5d$ by section #c4 
7b7 ,cont5ts ,! cont5ts ( ! report      
describ$ 9 subsection 7a7 %all include  
in=mation ab\t ! degree to :i* specific 
in/itutions utilize c]tifications 9     

effectively--  7#a7 enc\rag+ ! exhau/ion
 ( ,f$]al /ud5t loan eligibility by     
borr[]s prior to tak+ on private        
education loan debt2 &  7#b7 l[]+       
private education loan debt by borr[]s4