,,ii  #aagth ,,congress  #ast ,session  
,s4 #beih  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #d1    
#bjba,mr4 ,durbin 7for himself and ,mr4 
,cornyn7 introduced the following bill2 
which was read twice and referred to the
 ,committee on the ,judiciary  ,a ,,bill
  ,to amend title #aa1 ,united ,states  
,code1 to improve the treatment of      
student loans in bankruptcy1 and for    
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,fostering     
,responsible ,education ,starts with    
,helping ,students ,through             
,accountability1 ,relief1 and ,taxpayer 
,protection ,through ,bankruptcy ,act of
 #bjba or the ,,fresh ,,start ,through  
,bankruptcy ,act4  #b4 ,exceptions to   
discharge ,section #ebc7;a7 of title    
#aa1 ,united ,states code1 is amended by
 striking paragraph 7#h7 and inserting  
the following3  7#h7 for an educational 
benefit overpayment or loan made1       
insured1 or guaranteed by a governmental
 unit1 or made under any program funded 

in whole or in part by a governmental   
unit or nonprofit institution1 or for an
 obligation to repay funds received as  
an educational benefit1 scholarship1 or 
stipend received from a governmental    
unit or nonprofit institution1 unless-- 
7,a7 excepting such debt from discharge 
under this paragraph would impose an    
undue hardship on the debtor and the    
debtor's dependents2 or  7,b7 the first 
payment on such debt became due before  
the #aj-year period 7exclusive of any   
applicable suspension of the repayment  
period7 ending on the date of the filing
 of the petition2  7#h;,a7 unless       
excepting such debt from discharge under
 this paragraph would impose an undue   
hardship on the debtor and the debtor's 
dependents1 for-- 7,a7 an obligation to 
repay funds received as an educational  
benefit1 scholarship1 or stipend1 other 
than an obligation described in         
paragraph 7#h72 or  7,b7 any educational
 loan1 other than a loan described in   
paragraph 7#h71 that is a qualified     

education loan1 as defined in section   
#bba7;d77#a7 of the ,internal ,revenue  
,code of #aihf1 incurred by a debtor who
 is an individual2  4  #c4 ,effect of   
discharge of certain student loans      
,section #ebd of title #aa1 ,united     
,states ,code1 is amended by adding at  
the end the following3  7n7 7#a7 ,in    
this subsection3 7,a7 ,the term cohort  
repayment rate1 with respect to a       
covered institution of higher education1
 means the percentage of student        
borrowers who are making at least some  
progress paying down their student loans
 within #c years of entering repayment4 
7,b7 ,the term covered institution of   
higher education means an institution of
 higher education 7as defined in section
 #ajb of the ,higher ,education ,act of 
#aife 7#bj ,u4,,sc4 #ajjb77 that-- 7i7  
is a participant in the ,federal ,direct
 ,loan ,program under part ,d of title  
,,iv of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajhg;a et seq472  
and  7ii7 has an enrollment of students 

that is not less than #cc percent       
students who have received a loan made1 
insured1 or guaranteed under title ,,iv 
of the ,higher ,education ,act of #aife 
7#bj ,u4,s4,c4 #ajgj et seq4774  7,c7   
,the term covered student loan means the
 original principal of a loan-- 7i7 the 
first payment on which became due before
 the #aj-year period 7exclusive of any  
applicable suspension of the repayment  
period7 ending on the date of the filing
 of the petition2 and  7ii7 used by the 
debtor to make a payment to a covered   
institution of higher education on      
behalf of the debtor for the purpose of 
attaining an educational benefit4  7,d7 
,the term ,federal ,direct ,,plus ,loan 
means a ,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 seq47  7#b7 ,if a  
covered student loan is discharged in a 
bankruptcy case under this title1 the   
covered institution of higher education 
to which the debtor of the bankruptcy   

case made a payment with the covered    
student loan shall pay to the           
,department of ,education an amount     
determined in accordance with the       
following3 7,a7 ,an amount equal to #ej 
percent of the amount of the covered    
student loan that is discharged1 if the 
covered institution of higher education1
 on the date on which the first payment 
on the covered student loan became due--
 7i7 had a cohort default rate 7as      
determined under section #dce7m7 of the 
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajhe7m77 for each of the #c  
fiscal years preceding that date that   
was equal to or more than #be percent2  
and  7ii7 had a cohort repayment rate-- 
7,i7 except for borrowers described in  
subclause 7,,ii71 that was equal to or  
less than #bj percent2 and  7,,ii7 with 
respect to borrowers who were graduate  
or professional students who received a 
,federal ,direct ,,plus ,loan for       
enrollment at the institution1 that was 
equal to or less than #ce percent4  7,b7

 ,an amount equal to #cj percent of the 
amount of the covered student loan that 
is discharged1 if the covered           
institution of higher education1 on the 
date on which the first payment on the  
covered student loan became due-- 7i7   
had a cohort default rate 7as determined
 under section #dce7m7 of the ,higher   
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhe7m77 for each of the #c fiscal     
years preceding that date that was equal
 to or more than #bj percent and less   
than #be percent2 and  7ii7 had a cohort
 repayment rate-- 7,i7 except for       
borrowers described in subclause 7,,ii71
 that was equal to or less than #be     
percent and more than #bj percent2 and  
7,,ii7 with respect to borrowers who    
were graduate or professional students  
who received a ,federal ,direct ,,plus  
,loan for enrollment at the institution1
 that was equal to or less than #dj     
percent and more than #ce percent4  7,c7
 ,an amount equal to #bj percent of the 
amount of the covered student loan that 

is discharged1 if the covered           
institution of higher education1 on the 
date on which the first payment on the  
covered student loan became due-- 7i7   
had a cohort default rate 7as determined
 under section #dce7m7 of the ,higher   
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhe7m77 for each of the #c fiscal     
years preceding that date that was equal
 to or more than #ae percent and less   
than #bj percent2 and  7ii7 had a cohort
 repayment rate-- 7,i7 except for       
borrowers described in subclause 7,,ii71
 that was equal to or less than #cj     
percent and more than #be percent2 and  
7,,ii7 with respect to borrowers who    
were graduate or professional students  
who received a ,federal ,direct ,,plus  
,loan for enrollment at the institution1
 that was equal to or less than #de     
percent and more than #dj percent4  4   
#d4 ,effective date2 applicability ,this
 ,act and the amendments made by this   
,act shall-- 7#a7 take effect on the    
date that is #ahj days after the date of

 enactment of this ,act2 and  7#b7 apply
 to a petition filed or amended under   
this title on or after the effective    
date under paragraph 7#a7 with respect  
to a debt for an educational benefit1   
overpayment1 loan1 scholarship1 or      
stipend of a debtor4