,,ii #aahth ,,congress #ast ,session ,s4 #acf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #cj1 #bjbc ,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 a consumer protection framework necessary to support the growth of accessible1 affordable1 and accountable financing options for postsecondary education1 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 #bjbc4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,sec4 #c4 ,effective date4 ,,title ,i--,new consumer protections specific to income share agreements ,sec4 #aja4 ,prohibition on acceleration2 treatment of early completion mechanisms4 ,sec4 #ajb4 ,consumer protections for educational income share agreements4 ,sec4 #ajc4 ,discharge protections for ,,isa recipients4 ,sec4 #ajd4 ,limitation on amounts treated as income under educational ,i,s,as4 ,,title ,,ii--,tax treatment of income share agreements ,sec4 #bja4 ,tax treatment4 ,,title ,,iii--,disclosures applicable to income share agreements ,sec4 #cja4 ,disclosures4 ,sec4 #cjb4 ,required disclosures for income share agreements4 ,sec4 #cjc4 ,additional requirements for educational ,i,s,as4 ,sec4 #cjd4 ,advertising of income share agreements4 ,,title ,,iv--,other clarifications to support ,,isa programs ,sec4 #dja4 ,treatment under securities laws4 ,sec4 #djb4 ,treatment under bankruptcy laws4 ,sec4 #djc4 ,consent to continuing release of taxpayer information under educational ,i,s,as and income share agreements4 ,sec4 #djd4 ,interplay with the ,higher ,education ,act of #aife4 ,,title ,v--,applying existing consumer protections to income share agreements ,sec4 #eja4 ,equal access to income share agreements4 ,sec4 #ejb4 ,prohibition on requiring preauthorized electronic fund transfers under the ,electronic ,fund ,transfer ,act4 ,sec4 #ejc4 ,treatment under the ,fair ,credit ,reporting ,act4 ,sec4 #ejd4 ,treatment under the ,fair ,debt ,collection ,practices ,act4 ,sec4 #eje4 ,treatment of educational income share agreements for purposes of ,military ,lending ,act4 ,sec4 #ejf4 ,treatment under the ,servicemembers ,civil ,relief ,act4 ,sec4 #ejg4 ,preservation of consumers' claims and defenses4 ,,title ,,vi--,relation to other laws ,sec4 #fja4 ,treatment under other laws4 ,sec4 #fjb4 ,relation to ,state law4 ,,title ,,vii--,enforcement and reporting ,sec4 #gja4 ,enforcement4 ,sec4 #gjb4 ,reporting requirement for the ,bureau of ,consumer ,financial ,protection4 #b4 ,definitions ,in this ,act3 7#a7 ,adverse action ,the term adverse action-- 7,a7 means a denial or revocation of rights under an income share agreement1 a change in the terms of an existing income share agreement1 or a refusal to grant an income share agreement in substantially the amount or on substantially the terms requested2 and 7,b7 does not include a refusal to extend additional disbursements or amounts financed under an income share agreement under an existing income share agreement arrangement if-- 7i7 the applicant is delinquent or otherwise in default2 or 7ii7 such additional amounts would exceed a previously established limit on the amount financed4 7#b7 ,amount financed ,the term amount financed means1 with respect to an income share agreement1 the amounts credited or advanced by the ,,isa provider to the ,,isa recipient or on behalf of the ,,isa recipient4 7#c7 ,annual percentage rate ,the term annual percentage rate means the annual percentage rate described in section #ajbf4bb7;a7 of title #ab1 ,code of ,federal ,regulations4 7#d7 ,applicant ,the term applicant means1 with respect to an income share agreement1 any individual who applies to an ,,isa provider directly or indirectly for an extension1 renewal1 or continuation of an income share agreement and includes applications for an additional amount exceeding a previously established limit on the amount financed4 7#e7 ,bureau ,the term ,bureau means the ,bureau of ,consumer ,financial ,protection4 7#f7 ,comparable loan ,the term comparable loan means1 with respect to an income share agreement1 a loan that-- 7,a7 has an amount financed1 as described in section #ajbf4ah7;b7 of title #ab1 ,code of ,federal ,regulations1 that is equal to the total amount financed1 as defined in paragraph 7#b71 for the income share agreement2 7,b7 has-- 7i7 the same disbursements or financing dates1 payment start date1 and frequency of payments as the income share agreement2 and 7ii7 an expected number of payments equal to the ,,isa maximum number of payments2 and 7,c7 is fully amortized over the ,,isa duration1 with substantially equal periodic payments of principal and interest4 7#g7 ,consumer ,the term consumer means a natural person using an income share agreement for personal1 family1 or household purposes4 7#h7 ,consumer protection regulation ,the term consumer protection regulation means a regulation that the ,bureau is authorized to prescribe under ,federal consumer financial law1 as defined in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha74 7#i7 ,covered educational institution ,the term covered educational institution-- 7,a7 means-- 7i7 an educational institution that would be an institution of higher education1 if such determination was made without regard to the institution's accreditation status2 and 7ii7 an institution-affiliated organization1 as defined in section #aea of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai72 and 7,b7 includes an agent1 officer1 or employee of the institution of higher education or institution-affiliated organization4 7#aj7 ,date of the ,,isa ,the term date of the ,,isa means the date that is the later of-- 7,a7 the date on which the income share agreement is signed by the ,,isa recipient and the ,,isa provider2 or 7,b7 the date on which the income share agreement is accepted by the ,,isa recipient and the ,,isa provider4 7#aa7 ,director ,the term ,director means the ,director of the ,bureau4 7#ab7 ,disbursement ,the term disbursement1 when used with respect to an income share agreement1 means the advance of ,,isa financing to an ,,isa recipient or the advancing of ,,isa financing to a third party on the ,,isa recipient's behalf4 7#ac7 ,educational ,,isa2 educational income share agreement ,the term educational ,,isa or educational income share agreement-- 7,a7 means an income share agreement that-- 7i7 is not made1 insured1 or guaranteed under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 or another federally subsidized educational finance program2 7ii7 pays amounts to1 or on behalf of1 the ,,isa recipient for-- 7,i7 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 under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq4772 7,,ii7 any personal expenses 7such as books1 supplies1 transportation1 and living costs7 incurred by the individual while enrolled in a program described in subclause 7,i72 7,,iii7 any other costs or expenses included in the definition of a qualified higher education expense1 as defined in section #ebi7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf2 and 7,,iv7 the refinancing of loans or income share agreements used for the purposes described in subclauses 7,i7 through 7,,iii71 and without regard as to whether the income share agreement is provided by the educational institution that the ,,isa recipient attends2 and 7,b7 does not include a loan1 open-end credit1 or any loan or income share agreement that is secured by real property or a dwelling4 7#ad7 ,education loan ,the term education loan means-- 7,a7 a loan made1 insured1 or guaranteed under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 or any other loan made1 insured1 or guaranteed by the ,federal ,government2 or 7,b7 a private education loan1 as such term is defined in section #adj7;a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a774 7#ae7 ,income ,the term income means the ,,isa ,recipient's income1 as established in the income share agreement under section #cjb7;d77#h71 subject to section #ajd4 7#af7 ,income share agreement 7,a7 ,in general ,the term income share agreement means a financial product whereby-- 7i7 7,i7 the ,,isa provider credits or advances financing to the ,,isa recipient or to a third party on behalf of the ,,isa recipient2 or 7,,ii7 if the ,,isa provider is a merchant financing the sale of goods or services to the ,,isa recipient via the financial product1 the ,,isa provider credits the amount financed toward the purchase of such goods or services2 7ii7 the ,,isa recipient is obligated to make periodic ,,isa payments 7if any become due7 to the ,,isa provider in the future calculated based upon and determined by the ,,isa recipient's future income2 7iii7 the ,,isa recipient's obligation to make payments 7if any become due7 to the ,,isa provider is conditional on the ,,isa recipient's income exceeding the income threshold set in the income share agreement2 7iv7 there is an ,,isa duration after which the obligation is complete regardless of how much has been paid 7as long as the ,,isa recipient has paid any prior amounts due72 7v7 the ,,isa provider and the ,,isa recipient enter into an agreement that1 as of the date of the ,,isa1 includes each element described in clauses 7i7 through 7iv72 and 7vi7 the agreement states that it is an income share agreement and subject to this ,act4 7,b7 ,special rule ,if a provider offers a financial product that meets the requirements of clauses 7i7 through 7v7 but does not include the statement described in clause 7vi71 then the financial product is not an income share agreement and shall be considered credit4 7#ag7 ,income threshold ,the term income threshold means a fixed dollar amount that is the minimum income per payment period that an ,,isa recipient is required to earn before the ,,isa recipient is required to make a payment on an income share agreement for such payment period4 7#ah7 ,institution of higher education ,the term institution of higher education has the meaning given the term in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb74 7#ai7 ,,isa duration ,the term ,,isa duration means the maximum length of time during which the income of an ,,isa recipient can be subject to an ,,isa payment 7absent periods of payment relief pause at the request of the ,,isa recipient74 7#bj7 ,,isa financing ,the term ,,isa financing means the disbursement of funds by an ,,isa provider under an income share agreement4 7#ba7 ,,isa maximum number of payments ,the term ,,isa maximum number of payments means the maximum number of ,,isa payments 7during ,,isa payment periods in which the ,,isa recipient's income is greater than the income threshold7 that an ,,isa recipient could be required to make4 7#bb7 ,,isa payment ,the term ,,isa payment-- 7,a7 means the amount of an ,,isa recipient's periodic payment obligation1 based on the terms of the income share agreement1 during any payment period for which the ,,isa recipient's income is greater than the income threshold2 and 7,b7 is calculated using the ,,isa payment calculation method1 based on the ,,isa recipient's income for the specified period4 7#bc7 ,,isa payment calculation method ,the term ,,isa payment calculation method means the ,,isa percentage1 or the schedule of fixed dollar amounts based on the ,,isa recipient's income for a payment period1 that is used to calculate an ,,isa recipient's ,,isa payment under the income share agreement4 7#bd7 ,,isa payment window ,the ,,isa payment window means the period during which the ,,isa recipient is required to make ,,isa payments in periods where the ,,isa recipient's income is greater than the income threshold for the income share agreement4 7#be7 ,,isa percentage ,the term ,,isa percentage means a percentage of income 7or schedule of percentages of income based on the ,,isa recipient's income in a given ,,isa payment period7 used to calculate an ,,isa recipient's ,,isa payment pursuant to an income share agreement4 7#bf7 ,,isa provider ,the term ,,isa provider means a person that provides financing to an ,,isa recipient pursuant to an income share agreement or1 in the case of a person who is a merchant financing the sale of goods or services to the ,,isa recipient1 the merchant4 7#bg7 ,,isa recipient ,the term ,,isa recipient means a consumer that receives financing from an ,,isa provider pursuant to an income share agreement4 7#bh7 ,loan ,the term loan means a financial product that-- 7,a7 is credit1 as defined in section #ajbf4b7;a7 of title #ab1 ,code of ,federal ,regulations2 7,b7 is not an income share agreement2 and 7,c7 involves the advance of a sum of money to a borrower under an obligation to repay the principal with a corresponding right to defer payment of the principal balance with or without interest4 7#bi7 ,loan comparison ,the term loan comparison means the comparison table required under section #cjb7;d77#i74 7#cj7 ,payment relief pause ,the term payment relief pause means a period of time that-- 7,a7 is requested by the ,,isa recipient during which any payment obligation the ,,isa recipient would have is suspended2 and 7,b7 does not count toward an ,,isa recipient's ,,isa payment window or ,,isa maximum number of payments4 7#ca7 ,person ,the term person means a natural person or an organization1 including a corporation1 partnership1 proprietorship1 association1 cooperative1 estate1 trust1 or government unit4 7#cb7 ,poverty line ,the term poverty line has the meaning given the term in section #fgc of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb74 7#cc7 ,secretary ,the term ,secretary means the ,secretary of ,education4 7#cd7 ,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 ,northern ,mariana ,islands1 the ,federated ,states of ,micronesia1 the ,republic of the ,marshall ,islands1 and the ,republic of ,palau4 7#ce7 ,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 #c4 ,effective date ,this ,act1 and the amendments made by this ,act1 shall take effect on the date that is #ahj days after the date of enactment of this ,act4 ,i ,new consumer protections specific to income share agreements #aja4 ,prohibition on acceleration2 treatment of early completion mechanisms 7a7 ,no acceleration 7#a7 ,in general ,an ,,isa provider shall not include any mechanism in an income share agreement that accelerates an amount against an ,,isa recipient in the event of a default under the income share agreement4 7#b7 ,effect of acceleration clause ,any agreement with an acceleration mechanism described in paragraph 7#a7 shall1 for purposes of all ,federal law1 be treated as credit under ,federal law and shall not be treated as an income share agreement4 7b7 ,no impact on early completion mechanisms ,notwithstanding subsection 7a7-- 7#a7 an income share agreement may contain an early completion provision that allows the ,,isa recipient to terminate the income share agreement prior to any trigger terminating further obligations under the income share agreement 7such as a total cap on payments due to the ,,isa provider or other rights to partially or fully terminate further obligations under the income share agreement7 if the early completion provision is optional to the ,,isa recipient and within the ,,isa recipient's control2 and 7#b7 such early completion mechanism shall not be treated as a form of acceleration prohibited under subsection 7a71 an early completion penalty1 or a prepayment penalty4 #ajb4 ,consumer protections for educational income share agreements 7a7 ,monthly payment affordability for educational ,i,s,as 7#a7 ,maximum ,,isa income obligation for educational ,i,s,as ,an ,,isa provider shall not enter into an educational ,,isa with an ,,isa recipient if the ,,isa recipient would be committing more than a total of #bj percent of the student's future income toward the payment of such educational ,,isa and all other educational ,i,s,as of the ,,isa recipient4 7#b7 ,self-certification ,in calculating the portion of a student's future income for purposes of this subsection1 the ,,isa provider may rely on a self-certification from the ,,isa recipient regarding the ,,isa recipient's outstanding educational ,i,s,as1 as of the date of the agreement4 7#c7 ,calculation methodology and requirements 7,a7 ,in general ,for the purposes of calculating the portion of an ,,isa recipient's future income that would be consumed by the educational ,,isa for which the ,,isa recipient has applied and all other educational ,i,s,as of the ,,isa recipient as of the date of the agreement1 the ,,isa provider shall calculate the aggregate future burden-- 7i7 in any case where the income threshold of the educational ,,isa is less than the maximum described in subparagraph 7,b71 at hypothetical future income levels from such income threshold to such maximum1 in increments of #aj1jjj2 and 7ii7 in any case where the income threshold of the educational ,,isa is equal to or greater than such maximum1 at such income threshold4 7,b7 ,maximum ,the maximum described in this subparagraph shall be the greater of-- 7i7 7,i7 for fiscal year #bjbc1 #gj1jjj2 or 7ii7 for fiscal year #bjbd and each subsequent fiscal year1 the maximum for the preceding fiscal year-- 7,i7 increased by the percentage increase in the consumer price index2 and 7,,ii7 rounded to the nearest #a1jjj2 and 7iii7 in the case of an ,,isa recipient who has 7as of the date of the agreement71 or has applied for1 an educational ,,isa that uses a schedule of income percentages or a schedule of fixed amounts as the ,,isa payment calculation method1 the highest income level referenced by a schedule for any such educational ,,isa4 7,c7 ,calculation 7i7 ,in general ,the terms of an educational ,,isa for which the ,,isa recipient has applied cannot cause the student's aggregate future burden 7defined as the total amounts expected to be due under all educational ,i,s,as of the ,,isa recipient as of the date of the agreement1 and all educational ,i,s,as for which the ,,isa recipient is applying7 to exceed the limit in paragraph 7#a7 at any of the income increments described in subparagraph 7,a74 7ii7 ,calculation method ,for the purpose of calculating the percentage burden of an educational ,,isa at a given future income level1 the ,,isa provider shall1 as applicable1 use-- 7,i7 the income percentage that would be applicable for the educational ,,isa at such income level2 or 7,,ii7 the fixed amount applicable for the educational ,,isa at such income level1 divided by such income level4 7#d7 ,protections during periods of low earnings 7,a7 ,in general ,the educational ,,isa shall provide that when an ,,isa recipient has an income that is equal to or below the income threshold of the educational ,,isa1 the ,,isa payment obligation is zero dollars4 7,b7 ,threshold amount ,the income threshold for an educational ,,isa shall be an amount such that the difference between the ,,isa recipient's income for the payment period1 minus the subtraction of any ,,isa obligation1 is not less than #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 #iijb771 prorated for the payment period4 7#e7 ,required payment relief pauses ,an educational ,,isa shall offer not less than #c months of voluntary payment relief pauses 7as long as the ,,isa recipient's current income at the time of requesting the payment relief pause is equal to or less than #djj percent of the poverty line7 for a single individual7 for every #cj income-determined payments required under the educational ,,isa4 7b7 ,ensuring appropriate risk sharing for educational ,i,s,as ,the payments required under an educational ,,isa for an individual with income during the payment term that is less than or equal to #cjj percent of the poverty line for a single individual1 prorated for the payment period1 shall not exceed the payments on a comparable loan that bears interest at a rate less than or equal to one-half of the annual percentage rate of interest limitation under section #ihg7;b7 of title #aj1 ,united ,states ,code4 7c7 ,limits on duration of educational ,,isa obligation 7#a7 ,,isa maximum number of payments ,the ,,isa maximum number of payments shall not exceed #bdj monthly payments4 7#b7 ,,isa duration ,the ,,isa duration of an educational ,,isa shall not exceed #cfj months 7except in the case of an extension requested by the ,,isa recipient74 7d7 ,non-,interference ,an educational ,,isa shall not be construed to give the contract holder any rights over an individual's actions other than as provided in this ,act4 #ajc4 ,discharge protections for ,,isa recipients 7a7 ,permanent and total disability ,in any case where an ,,isa recipient would be deemed totally and permanently disabled for purposes of benefits administered by the ,department of ,veterans ,affairs or the ,social ,security ,administration 7determined without regard to whether the recipient receives such benefits71 all further obligations of the ,,isa recipient under the income share agreement shall terminate1 except those accruing before the date such a determination would apply4 7b7 ,death ,upon the death of an ,,isa recipient1 all further obligations of the ,,isa recipient under the income share agreement shall terminate1 except those obligations accruing before the ,,isa recipient's date of death4 #ajd4 ,limitation on amounts treated as income under educational ,i,s,as 7a7 ,in general ,for purposes of calculating the obligation of an ,,isa recipient to make ,,isa payments under an educational ,,isa1 the income of the ,,isa recipient shall not include-- 7#a7 the income of any child or dependent of the ,,isa recipient2 7#b7 any item of income which is not included in the gross income of the ,,isa recipient2 7#c7 any amount received from an individual retirement plan 7as defined in section #ggja of the ,internal ,revenue ,code of #aihf71 a pension1 or an annuity2 or 7#d7 any social security benefit 7as defined in section #hf of such ,code74 7b7 ,estimating income 7#a7 ,in general ,in the event that an ,,isa recipient fails to provide income documentation as reasonably required by the income share agreement1 an ,,isa provider may assign an amount of income to the participant and compute the monthly payment amount for the participant by any of the following methods1 to the extent disclosed in the income share agreement3 7,a7 ,assigning an income amount obtained from a reasonably reliable third party or a consumer reporting agency1 as defined in section #fjc7;f7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a7f774 7,b7 ,if the participant previously provided income documentation or has had an income assigned in the preceding #a-year period1 assuming that such income has increased by up to #aj percent1 but such increase may not be applied more than once per #a-year period4 7,c7 ,contacting the employer of the participant1 or any person or entity reasonably believed to be the employer of the participant1 to obtain1 verify1 or update the income information of the participant4 7,d7 ,contacting the ,state revenue department or the ,internal ,revenue ,service to obtain the most recent information available about the income of the participant4 7,e7 ,for educational ,,isa providers1 in any case where the ,,isa provider has no prior history of income information from the participant1 assigning a reasonable qualified income based on-- 7i7 the median income for individuals working in the profession for which the educational program of the participant was intended to prepare the participant1 as determined by information published by the ,bureau of ,labor ,statistics or other reasonably reliable publicly available data sources2 or 7ii7 the median income of participants who attended the same or a reasonably comparable covered educational program or course of study1 as determined by information published by the ,bureau of ,labor ,statistics or other reasonably reliable publicly available data sources4 7#b7 ,notification ,if an ,,isa provider assigns an income to the income share agreement of a participant1 the ,,isa provider-- 7,a7 shall notify the participant in the monthly billing statement1 and in each billing statement thereafter while the assigned income remains applicable to the income share agreement of the participant1 that income has been assigned and of the rights of the participant under this section2 7,b7 in any tax year for which the ,,isa provider has made an assumption about an individual's income using any of the methods described in paragraph 7#a7 and if the participant has authorized ongoing access to the participant's return information under section #djc1 shall request such information in each year of the payment term2 7,c7 if the participant does provide income information as reasonably required by the income share agreement within #a year of the date on which the ,,isa provider notified the participant that assigned income shall be applied to the income share agreement or if the ,,isa provider receives updated income information through return information authorized under section #djc1 then1 within #ae days after the date on which the ,,isa provider receives such information1 shall-- 7i7 update each prior instance in which assigned income was applied using such new income information2 and 7ii7 reconcile any difference in amounts owed by the participant based on those updates to prior income2 and 7,d7 if the participant provides income information more than #a year after the ,,isa provider first assigned income to the income share agreement of the participant1 may1 but shall not be obligated to1 update each prior instance in which assigned income was applied using the income information provided by the participant4 7#c7 ,records retention ,an ,,isa provider that assigns income to an income share agreement shall retain all applicable records relating to the method and data sources used to make such estimation for #c years after the end of that income share agreement4 ,,ii ,tax treatment of income share agreements #bja4 ,tax treatment 7a7 ,in general ,subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,,xii ,rules relating to qualified educational income sharing agreements ,sec4 #bic4 ,rules related to qualified educational ,i,s,as4 #bic4 ,rules related to qualified educational ,i,s,as 7a7 ,in general ,for purposes of this title1 an educational ,,isa shall not be treated as indebtedness4 7b7 ,treatment of ,,isa recipient 7#a7 ,income exclusion ,in the case of an individual-- 7,a7 ,in general ,gross income shall not include so much of the amount received under an educational ,,isa as does not exceed amounts paid or credited to such individual under such qualified educational ,,isa for costs and expenses described in section #b7ac77;,a77ii77,,ii7 of the ,,isa ,student ,protection ,act of #bjbc4 7,b7 ,difference in payments ,in any case in which the amount provided to the individual under the educational ,,isa exceeds the total payments made by the individual under the educational ,,isa1 gross income shall not include the amount of such excess4 7#b7 ,certain amounts treated as interest on qualified education loans 7,a7 ,in general ,for purposes of section #bba1 the amount described in subparagraph 7,b7 with respect to any educational ,,isa shall be treated as interest paid by the taxpayer during the taxable year on a qualified education loan4 7,b7 ,amount described ,the amount described in this subparagraph with respect to any educational ,,isa is1 for any taxable year1 the excess of-- 7i7 amounts paid by the taxpayer to another person under the terms of a qualified educational ,,isa during such taxable year1 over 7ii7 the excess of-- 7,i7 the aggregate amount received under such qualified educational ,,isa during such taxable year and all preceding taxable years1 over 7,,ii7 the aggregate amounts paid by the taxpayer to another person under the terms of such qualified educational ,,isa during all preceding taxable years4 7#c7 ,amounts treated as educational assistance ,for purposes of section #abg7;c77#a77;,b71 amounts paid by an employer in satisfaction of obligations of an employee under a qualified educational ,,isa shall be treated in the same manner as a payment of principal or interest on a qualified education loan4 7c7 ,treatment of ,,isa funder ,gross income shall not include so much of any amount received as a payment from a recipient under an educational ,,isa funded by the taxpayer as does not exceed the excess of-- 7#a7 the aggregate amount of financing provided by the taxpayer under such educational ,,isa1 over 7#b7 the aggregate amount of such payments taken into account under this subsection by the taxpayer for all preceding taxable years4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,educational ,,isa ,the term educational ,,isa has the meaning given such term under section #b of the ,,isa ,student ,protection ,act of #bjbc4 7#b7 ,qualified educational ,,isa ,the term qualified educational ,,isa means an educational ,,isa that is extended for expenses at an institution of higher education that participates in a student financial assistance program under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq474 4 7b7 ,conforming amendment ,the table of parts for subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,,part ,,xii--,rules relating to qualified educational income sharing agreements 4 ,,iii ,disclosures applicable to income share agreements #cja4 ,disclosures ,the following disclosures shall be provided to ,,isa recipients3 7#a7 ,in general ,an ,,isa provider 7regardless of whether the ,,isa provided is an educational ,,isa7 shall provide1 to any individual that applies for or signs an income share agreement1 a written document that clearly and simply discloses the information required by this ,act4 7#b7 ,application ,the provisions of this title shall not apply to-- 7,a7 income share agreements primarily for business1 commercial1 or agricultural purposes2 7,b7 government or governmental agencies or instrumentalities2 7,c7 organizations2 or 7,d7 transactions for which the ,bureau1 by rule1 determines that coverage under the provisions of this title are not necessary to carry out the purposes of this title4 7#c7 ,regulations ,not later than #bgj days after the date of enactment of this ,act1 the ,bureau shall prescribe regulations to carry out the purposes of this title1 which may contain such additional requirements1 classifications1 differentiations1 or other provisions1 and may provide for such adjustments and exceptions for all or any class of transactions1 as in the judgment of the ,bureau are necessary or proper to effectuate the purposes of this title1 to prevent circumvention or evasion thereof1 or to facilitate compliance therewith4 7#d7 ,model disclosure forms and clauses 7,a7 ,in general ,not later than #bgj days after the date of enactment of this ,act1 the ,bureau shall publish a model integrated disclosure for educational ,i,s,as and a model integrated disclosure for income share agreements generally in order to facilitate compliance with the disclosure requirements of this ,act and aid ,,isa recipients in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures4 7,b7 ,consideration ,in devising the disclosure forms required under subparagraph 7,a71 the ,bureau shall consider the use by ,,isa providers of data processing or similar automated equipment4 7,c7 ,rule of construction ,nothing in this title may be construed to require an ,,isa provider to use any model form or clause published by the ,bureau under this section4 7,d7 ,compliance ,an ,,isa provider shall be deemed to be in compliance with the disclosure provisions of this title with respect to other than numerical disclosures if the ,,isa provider-- 7i7 uses any appropriate model form or clause as published by the ,bureau under this section2 or 7ii7 uses any such model form or clause and changes the form or clause by-- 7,i7 deleting any information that is not required under this title2 or 7,,ii7 rearranging the format1 if in making such deletion or rearranging the format1 the ,,isa provider does not affect the substance1 clarity1 or meaningful sequence of the disclosure4 7#e7 ,procedures applicable for adoption of model forms and clauses ,model disclosure forms and clauses under this section shall be adopted by the ,bureau after notice duly given in the ,federal ,register and an opportunity for public comment in accordance with section #eec of title #e1 ,united ,states ,code4 7#f7 ,effective dates of regulations containing new disclosure requirements 7,a7 ,in general ,any regulation of the ,bureau1 or any amendment or interpretation thereof1 requiring any disclosure which differs from the disclosures previously required by this title or any regulation of the ,bureau promulgated under this title shall have an effective date of that ,october #a which follows by not less than #f months the date of promulgation1 except that the ,bureau may at its discretion take interim action by regulation1 amendment1 or interpretation to lengthen the period of time permitted for ,,isa providers to adjust their forms to accommodate new requirements or shorten the length of time for ,,isa providers to make such adjustments when the ,,isa provider makes a specific finding that such action is necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices4 7,b7 ,compliance ,notwithstanding subparagraph 7,a71 any ,,isa provider may comply with any such newly promulgated disclosure requirements prior to the effective date of the requirements4 7#g7 ,deference ,notwithstanding any power granted to any ,federal agency under this ,act1 the deference that a court affords to the ,bureau with respect to a determination made by the ,bureau relating to the meaning or interpretation of any provision of this ,act1 shall be applied as if the ,bureau were the only agency authorized to apply1 enforce1 interpret1 or administer the provisions of this ,act4 #cjb4 ,required disclosures for income share agreements 7a7 ,disclosures requirements for all ,i,s,as 7#a7 ,in general ,the ,,isa provider shall make the disclosures required by this section clearly and conspicuously in writing1 in a form that the ,,isa recipient may retain4 7#b7 ,electronic form ,the disclosures required by this section may be provided to the ,,isa recipient in electronic form in accordance with the ,electronic ,signatures in ,global and ,national ,commerce ,act 7#ae ,u4,s4,c4 #gjja et seq474 7#c7 ,other requirements ,the disclosures required by this section shall-- 7,a7 be grouped together2 7,b7 be segregated from anything that is not such a disclosure2 and 7,c7 only contain information directly related to the disclosures required under this section4 7b7 ,use of estimates ,if any information necessary for an accurate disclosure is unknown to the ,,isa provider1 the ,,isa provider shall make the disclosure based on the best information reasonably available at the time the disclosure is provided to the ,,isa recipient1 and shall state clearly that the disclosure is an estimate4 7c7 ,multiple ,,isa providers1 multiple ,,isa recipients 7#a7 ,multiple ,,isa providers ,in any case where an income share agreement transaction involves more than one ,,isa provider1 only one set of disclosures shall be given and the ,,isa providers shall agree among themselves which ,,isa provider shall comply with the requirements that this title imposes on any or all of the ,,isa providers4 7#b7 ,multiple ,,isa recipients ,in any case where an income share agreement transaction has more than one ,,isa recipient1 the disclosures may be made to any ,,isa recipient whose income will be used to calculate the ,,isa payments due to the ,,isa provider4 7d7 ,content of disclosures ,an ,,isa provider of an income share agreement 7regardless of whether the income share agreement is an educational ,,isa7 shall provide1 to any person that applies for or signs a consumer income share agreement1 a written document that clearly and simply discloses the following information3 7#a7 ,a statement that the income share agreement is not a fixed payment installment loan1 and that the amount the ,,isa recipient will be required to pay under the income share agreement may be more or less than the amount financed by the ,,isa provider and will vary in proportion to the ,,isa recipient's future income4 ,an ,,isa provider may satisfy the requirements of this paragraph by providing a table that compares periodic payments under the income share agreement at different income levels showing that payments vary with income1 or that also compares such periodic payments under the ,,isa at different income levels with a loan product4 7#b7 ,in the case of an educational ,,isa1 the following statement3 ,this income share agreement is not a grant or scholarship4 ,if your income is above the ,income ,threshold1 you will have to make payments under this income share agreement44 7#c7 ,the following statement3 ,payments due under this income share agreement are determined by your income4 ,your payments are calculated using the ,,isa ,payment ,calculation ,method described in your ,,isa4 ,the amount you pay may be more than1 equal to1 or less than the amount financed44 7#d7 ,in a series of boxes or other device designed to feature the following information more prominently than elsewhere in the income share agreement disclosures1 the following information3 7,a7 ,the term ,amount ,financed and the dollar amount of the amount funded1 followed by a description that states1 ,the amount of funds you will receive or that will be credited on your behalf44 7,b7 ,the term ,,isa ,payment ,calculation ,method and the following3 7i7 ,in the case of an ,,isa payment calculation method that is a percentage 7or schedule of percentages71 such percentage 7or schedule of percentages7 followed by a description that states1 ,the percentage of your income used to calculate your ,,isa ,payment4 and1 if the ,,isa payment calculation method is a schedule of percentages1 an explanation of where the ,,isa recipient can learn more about how the ,,isa recipient's income percentage is determined4 7ii7 ,in the case of an ,,isa payment calculation method that is a schedule of fixed dollar amounts calculated based on the ,,isa recipient's income for a payment period1 the schedule of fixed amounts 7or a reference to the location of the schedule in the ,,isa7 followed by a description that states1 ,the amount of your ,,isa ,payment will vary based on your income4 ,see your ,,isa for more information44 7,c7 ,the term ,maximum ,number of ,income-,determined ,payments and the ,,isa maximum number of payments1 followed by a description that states1 ,the maximum number of ,,isa payments you will make when your income is above the ,income ,threshold44 7,d7 ,the term ,maximum ,duration and the ,,isa duration1 followed by a description that states1 ,the maximum amount of time that you are required to make income-determined payments1 excluding any extensions that you request44 7,e7 ,the term ,income ,threshold and the income threshold for the income share agreement1 followed by a description that states1 ,the minimum income you must make in order to trigger a payment obligation under this income share agreement4 ,if your income is less than or equal to this ,income ,threshold1 you will not owe any ,,isa payments for that period44 7#e7 ,a statement that during periods in which the ,,isa recipient's income is not above the income threshold-- 7,a7 the ,,isa recipient will not owe an ,,isa payment for that period of time2 and 7,b7 any such period of non-payment will not count towards the ,,isa maximum number of payments but will count toward the ,,isa duration4 7#f7 ,a statement that the obligations of the ,,isa recipient under the income share agreement would be dischargeable in a case under title #aa1 ,united ,states ,code1 in the same manner as a loan that is not described in section #ebc7;a77#h7 of title #aa1 ,united ,states ,code4 7#g7 ,a description of the terms under which the obligations of the ,,isa recipient under the income share agreement shall be extinguished in advance of the full ,,isa duration4 7#h7 ,the definition of income to be used for purposes of calculating the ,,isa recipient's obligation under the income share agreement1 subject to section #ajd7;a74 7#i7 ,a comparison table that includes the following3 7,a7 7i7 ,the amounts and number of ,,isa payments that an ,,isa recipient would be required to pay under the income share agreement at a range of annual income levels stated as both a monthly and annual income amount4 7ii7 ,the income levels used in the disclosure under this paragraph shall include1 at a minimum1 the obligations for the ,,isa recipient-- 7,i7 with no income2 7,,ii7 with income at the income threshold2 and 7,,iii7 for various income scenarios1 including1 at a minimum1 calculations at annual incomes of #dj1jjj1 #fj1jjj1 #hj1jjj1 #ajj1jjj1 #abe1jjj1 #aej1jjj1 #age1jjj1 and #bjj1jjj4 7iii7 ,the comparison table under this paragraph shall include the following statement3 ,this table assumes you have the same ,income over the entire term of your income share agreement4 ,it does not take into account changes in ,income4 ,your ,income will likely change over time44 7,b7 ,the total of all ,,isa payments over the life of the income share agreement that the ,,isa recipient will have made in each of the income level scenarios described in subparagraph 7,a74 7,c7 ,the amounts and number of payments1 the total of all payments1 and the annual percentage rate required to be paid under one or more comparable loans1 including1 at a minimum-- 7i7 if elected by the ,bureau1 a loan at a fixed or variable rate and with a number of payments determined by the ,bureau to be an approximation of the fixed or variable interest rate available to ,,isa recipients in the private marketplace2 7ii7 for an educational ,,isa1 a comparable loan made under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 7including subsidized and unsubsidized scenarios71 if the individual would be eligible for such a loan2 and 7iii7 for an income share agreement that is not an educational ,,isa1 a loan or loans that the ,,isa provider believes1 in good faith1 represents other alternative loan options available for the ,,isa recipient4 7#aj7 ,a statement of the intent of the ,,isa provider to engage in an annual process of reconciliation to determine if the ,,isa recipient's ,,isa payments for the preceding year are more than1 equal to1 or less than the ,,isa payments owed under the income share agreement1 including-- 7,a7 a description of the process in which the ,,isa recipient must participate in order for the ,,isa provider to verify the ,,isa recipient's income2 and 7,b7 a description of any tax records or forms that the ,,isa recipient must execute or that the ,,isa provider intends to submit to the ,internal ,revenue ,service4 7#aa7 ,a disclosure of the following items1 to the extent applicable3 7,a7 ,the amount that is or will be paid directly to the ,,isa recipient4 7,b7 ,the amount that is or will be credited to the ,,isa recipient's account to discharge obligations owed to the ,,isa provider4 7,c7 ,each amount that is or will be paid to third persons by the ,,isa provider on the ,,isa recipient's behalf1 together with an identification of or reference to the third person4 7,d7 ,the total amount of any charges that will be paid by the ,,isa recipient before or at the time of the consummation of the transaction1 or have been withheld from the proceeds of the income share agreement4 7#ab7 ,the name and mailing address of the ,,isa provider4 7#ac7 ,a payment schedule that-- 7,a7 shows the date upon which the first ,,isa payment is expected to be due or1 if such date is not reasonably knowable-- 7i7 an estimated date using the best information available to the ,,isa provider2 or 7ii7 a statement of the events that will trigger the first payment2 and 7,b7 reflects each date thereafter during the ,,isa duration that an ,,isa payment may be due4 7e7 ,additional disclosure elements ,the ,director may1 through a rulemaking process-- 7#a7 add additional items to be disclosed under subsection 7d7 if consumer testing shows those elements would help consumers better understand the nature of the ,,isa obligation or better compare it with other products2 and 7#b7 require that additional income scenarios be included in the comparison table under paragraph 7#i77;,a77ii77,,iii71 taking into account the income levels the ,,isa recipient might reasonably be expected to make given the intended use of the funds provided under the income share agreement1 except in no case shall the number of scenarios exceed #bj4 #cjc4 ,additional requirements for educational ,i,s,as 7a7 ,additional disclosure timing rules for educational ,i,s,as ,the following additional provisions apply to any income share agreement that is an educational ,,isa3 7#a7 ,application and solicitation 7,a7 ,in general ,the ,,isa provider of an educational ,,isa that is to be used solely for postsecondary educational expenses shall provide the disclosures described in subsection 7b77#a7 with any application or solicitation for the educational ,,isa4 ,for purposes of this section1 the term solicitation means an offer of an income share agreement that does not require the potential ,,isa recipient to complete an application4 7,b7 ,telephone applications or solicitations ,in the case of a telephone application or solicitation for an educational ,,isa1 the ,,isa provider shall provide the disclosure by1 at its option-- 7i7 disclosing orally the information described in subsection 7b77#a72 or 7ii7 mailing a copy of the disclosure described in subsection 7b77#a7 not later than #c business days after the potential ,,isa recipient has applied for the educational ,,isa4 7,c7 ,special rule ,for an income share agreement that the ,,isa recipient may use for multiple purposes including postsecondary educational expenses1 the ,,isa provider need not provide the disclosures required under subsection 7b77#a7 in the application or solicitation4 7#b7 ,approval disclosures ,the ,,isa provider shall provide the disclosures required by subsection 7b77#b7 before consummation on1 or with any notice of approval provided to the applicant for1 an educational ,,isa4 ,if the ,,isa provider mails notice of approval1 the disclosures shall be mailed with the notice4 ,if the ,,isa provider communicates notice of approval by telephone1 the ,,isa provider shall mail the disclosures not later than #c business days after providing the notice of approval4 ,if the ,,isa provider communicates notice of approval electronically1 the ,,isa provider shall provide the disclosure1 at its option1 either in electronic form in accordance with the requirements of this title or by mailing the disclosure not later than #c business days after communicating the notice of approval4 ,if the ,,isa provider communicates approval in person1 the ,,isa provider shall provide the disclosures to the applicant for an income share agreement at that time4 7#c7 ,final disclosures ,the disclosures required by subsection 7b77#c7 shall be provided after the ,,isa recipient accepts the income share agreement4 7#d7 ,receipt of mailed disclosures ,if a disclosure under paragraph 7#a71 7#b71 or 7#c7 is mailed to the potential ,,isa recipient or ,,isa recipient1 as the case may be1 the potential ,,isa recipient or ,,isa recipient shall be deemed to have received the disclosure #e business days after the disclosure is mailed4 7#e7 ,basis of disclosures and use of estimates in educational ,i,s,as 7,a7 ,legal obligation ,disclosures shall reflect the terms of the legal obligation between the parties4 7,b7 ,estimates ,if any information necessary for an accurate disclosure is unknown to the ,,isa provider1 the ,,isa provider shall make the disclosure based on the best information reasonably available at the time the disclosure is provided1 and shall state clearly that the disclosure is an estimate4 7#f7 ,effect of subsequent events 7,a7 ,approval disclosures ,if a disclosure made under paragraph 7#b7 becomes inaccurate because of an event that occurs after the ,,isa provider delivers the required disclosures1 the inaccuracy is not a violation of this ,act1 although new disclosures may be required in accordance with this title4 7,b7 ,final disclosures ,if a disclosure under paragraph 7#c7 becomes inaccurate because of an event that occurs after the creditor delivers the required disclosures1 the inaccuracy is not a violation of this ,act4 7b7 ,additional disclosures for educational ,i,s,as ,in addition to the other disclosure requirements of this title1 an ,,isa provider of an educational ,,isa shall provide the disclosures required under this subsection as follows3 7#a7 ,application and ,solicitation ,disclosure ,on or with a solicitation or an application for an educational ,,isa1 an ,,isa provider shall disclose the following3 7,a7 ,,isa payment calculation method 7i7 ,the ,,isa payment calculation method that applies to the educational ,,isa and actually offered by the ,,isa provider at the time of application or solicitation4 ,if the ,,isa payment calculation method will depend1 in part1 on a later determination of the ,,isa recipient's creditworthiness or other factors1 a statement that the ,,isa payment calculation method for which the ,,isa recipient may qualify will depend on the ,,isa recipient's creditworthiness and other factors1 if applicable4 7ii7 ,in the case of an ,,isa payment calculation method that is based on a schedule of percentages-- 7,i7 an explanation of how the schedule of percentages is calculated using percentages of income based on the ,,isa recipient's income2 and 7,,ii7 the timing for recalculation of the ,,isa recipient's payments under the schedule of percentages4 7iii7 ,in the case of an ,,isa payment calculation method that is based on a schedule of fixed amounts that an ,,isa recipient is required to pay that is calculated based on the ,,isa recipient's income for a payment period-- 7,i7 an explanation of how the schedule of fixed amounts is calculated using fixed amounts based on the ,,isa recipient's income2 and 7,,ii7 the timing for recalculation of the ,,isa recipient's payments under the schedule of fixed amounts4 7,b7 ,fees and ,default or ,late ,payment ,costs 7i7 ,an itemization of the fees or range of fees required to obtain the educational ,,isa4 7ii7 ,any fees or other penalties based on the ,,isa recipient's default or late payment4 7,c7 ,payment ,terms 7i7 ,the ,,isa duration1 or range of ,,isa durations1 offered by the ,,isa provider4 7ii7 ,a description of any payment deferral options4 7,d7 ,cost ,estimates ,using the highest dollar amount or percentage applicable under the ,,isa payment calculation method described in subparagraph 7,a77i7 and using an amount financed of #aj1jjj1 or #e1jjj if the ,,isa provider only offers income share agreements of this type for less than #e1jjj1 the loan comparison based on these assumptions4 7,e7 ,eligibility ,any age or school enrollment eligibility requirements relating to the ,,isa recipient4 7,f7 ,alternative to income share agreements 7i7 ,with respect to an educational ,,isa that might be used for postsecondary expenses at an institution of higher education that participates in a student financial assistance program under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47-- 7,i7 a statement the ,,isa recipient may qualify for ,federal student financial assistance through a program under such title2 and 7,,ii7 the interest rates for each program of financial assistance available under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 and information regarding whether the rates for the loans available under such title are fixed or variable4 7ii7 ,if applicable to the student's circumstances1 a statement that the ,,isa recipient may obtain additional information concerning ,federal student financial assistance from the institution of higher education that the student attends1 or at the website of the ,department of ,education1 including an appropriate website address for the ,department4 7iii7 ,a statement that an institution of higher education may have school-specific education loan benefits and terms not detailed on the disclosure form4 7,g7 ,rights of the consumer ,a statement that if the application for the educational ,,isa is approved by the ,,isa provider1 the terms of the educational ,,isa will be available and will not change for #cj days except as a result of adjustments to the ,,isa payment calculation method1 ,,isa duration1 or ,,isa maximum number of payments and other changes permitted by law4 7,h7 ,self-certification information ,a statement that1 before the educational ,,isa may be consummated1 the ,,isa recipient must complete the self-certification form and that the form may be obtained from the institution of higher education that the student attends4 7,i7 ,overall educational finance obligation notice ,the following statement3 ,,important ,,notice ,,required ,,by ,,law3 ,students are cautioned to consider carefully entering into this ,income ,share ,agreement if their total future payment commitment1 including any other forms of education finance1 may exceed #bj percent of their expected future income4 ,your total future obligation may exceed this percentage if you have received additional education financing1 including other income share agreements1 ,department of ,education ,direct or ,,ffel ,loans1 or private education loans44 7#b7 ,disclosures upon approval of an ,,isa ,upon approval of an educational ,,isa by an ,,isa provider1 the ,,isa provider shall disclose the information required under section #cjb7;d7 and the following information3 7,a7 ,,isa payment calculation method 7i7 ,the ,,isa payment calculation method that applies to the educational ,,isa4 7ii7 ,in the case of an ,,isa payment calculation method that is based on a schedule of percentages-- 7,i7 an explanation of how the schedule of percentages is calculated using percentages of income based on the ,,isa recipient's income2 and 7,,ii7 the timing for recalculation of the ,,isa recipient's payments under the schedule of percentages4 7iii7 ,in the case of an ,,isa payment calculation method that is based on a schedule of fixed amounts that an ,,isa recipient is required to pay based on the ,,isa recipient's income for a payment period-- 7,i7 an explanation of how the schedule of fixed amounts is calculated using fixed amounts based on the ,,isa recipient's income2 and 7,,ii7 the timing for recalculation of the ,,isa recipient's payments under the schedule of fixed amounts4 7,b7 ,fees and default or late payment costs 7i7 ,an itemization of the fees or range of fees required to obtain the educational ,,isa4 7ii7 ,any fees or other penalties based on the ,,isa recipient's defaults or late payments4 7,c7 ,payment terms 7i7 ,the ,,isa duration1 or range of ,,isa durations1 offered by the ,,isa provider4 7ii7 ,a description of any payment deferral options4 7,d7 ,cost ,estimates ,the following disclosure shall be made using the ,,isa payment calculation method1 ,,isa duration1 and ,,isa maximum number of payments for which the ,,isa recipient has been approved3 7i7 ,the loan comparison based on these assumptions4 7ii7 ,a description of the payment deferral option chosen by the ,,isa recipient1 if applicable1 and any other payment deferral options that the ,,isa recipient may elect at a later time4 7iii7 ,any payments required while the ,,isa recipient is enrolled at a covered educational institution1 based on the deferral option chosen by the ,,isa recipient4 7,e7 ,alternatives to private education income share agreements1 if applicable to the student ,in the case of an educational ,,isa that may be used for education expenses at an institution of higher education that participates in the student financial assistance programs under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq471 the following3 7i7 ,a statement that the ,,isa recipient may qualify for ,federal student financial assistance through a program under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq474 7ii7 ,the interest rates for each program of financial assistance available under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 and information regarding whether the rates for the loans available under such title are fixed or variable4 7iii7 ,a statement that the ,,isa recipient may obtain additional information concerning ,federal student financial assistance from the institution of higher education that the student attends1 or at the website of the ,department of ,education1 including an appropriate website address for the ,department4 7,f7 ,rights of the ,,isa recipient 7i7 ,a statement that the ,,isa recipient may accept the terms of the income share agreement until the last day of the acceptance period described in subsection 7d77#a74 7ii7 ,the specific date on which the acceptance period expires1 based on the date upon which the ,,isa recipient receives the disclosures required under this paragraph for the income share agreement4 7iii7 ,a specification of the method or methods by which the ,,isa recipient may communicate acceptance4 7iv7 ,a statement that1 except for changes to the ,,isa payment calculation method and other changes permitted by law1 the rates and terms of the income share agreement may not be changed by the ,,isa provider during the period described in clause 7i74 7,g7 ,overall educational finance obligation notice ,the following statement3 ,,important ,,notice ,,required ,,by ,,law3 ,students are cautioned to consider carefully entering into this ,income ,share ,agreement if their total future payment commitment1 including any other forms of education finance1 may exceed #bj percent of their expected future income4 ,your total future obligation may exceed this percentage if you have received additional education financing1 including other income share agreements1 ,department of ,education ,direct or ,,ffel ,loans1 or private education loans44 7#c7 ,final disclosures ,after the ,,isa recipient has accepted the income share agreement in accordance with subsection 7d77#a71 the ,,isa provider shall disclose to the ,,isa recipient the information required by this section and the following information3 7,a7 ,,isa payment calculation method 7i7 ,the ,,isa payment calculation method applicable to the income share agreement4 7ii7 ,in the case of an ,,isa payment calculation method that is based on a schedule of percentages-- 7,i7 an explanation of how the schedule of percentages is calculated using percentages of income based on the ,,isa recipient's income2 and 7,,ii7 the timing for recalculation of the ,,isa recipient's payments under the schedule of percentages4 7iii7 ,in the case of an ,,isa payment calculation method that is based on a schedule of fixed amounts that an ,,isa recipient is required to pay based on the ,,isa recipient's income for a payment period-- 7,i7 an explanation of how the schedule of fixed amounts is calculated using fixed amounts based on the ,,isa recipient's income2 and 7,,ii7 the timing for recalculation of the ,,isa recipient's payments under the schedule of fixed amounts4 7,b7 ,fees and default or late payment costs 7i7 ,an itemization of the fees or range of fees required to obtain the educational ,,isa4 7ii7 ,any fees or other penalties based on the ,,isa recipient's defaults or late payments4 7,c7 ,payment terms 7i7 ,the ,,isa duration or range of ,,isa durations offered by the ,,isa provider4 7ii7 ,a description of any payment deferral options4 7,d7 ,cost estimates ,the following disclosure shall be made using the ,,isa payment calculation method1 ,,isa duration1 and ,,isa maximum number of payments for which the ,,isa recipient has been approved3 7i7 ,the loan comparison based on these assumptions4 7ii7 ,a description of the payment deferral option chosen by the ,,isa recipient1 if applicable1 and any other payment deferral options that the ,,isa recipient may elect at a later time4 7iii7 ,any payments required while the ,,isa recipient is enrolled at a covered educational institution1 based on the deferral option chosen by the ,,isa recipient4 7,e7 ,cancellation rights 7i7 ,a statement that-- 7,i7 the ,,isa recipient has the right to cancel the income share agreement1 without penalty1 at any time before the cancellation period under subsection 7e7 expires2 and 7,,ii7 the income share agreement proceeds will not be disbursed until after such cancellation period expires4 7ii7 ,the specific date on which the cancellation period expires and a statement that the ,,isa recipient may cancel by that date4 7iii7 ,a statement specifying-- 7,i7 all methods by which the ,,isa recipient may cancel2 and 7,,ii7 if the ,,isa provider permits cancellation by mail1 that the ,,isa recipient's mailed request will be deemed timely if placed in the mail not later than the cancellation date specified in clause 7ii74 7iv7 ,the disclosures required by this subparagraph shall be made more conspicuous than any other disclosure required under this section1 except for the ,,isa payment calculation method1 ,,isa duration1 ,,isa maximum number of payments1 amount financed1 income threshold1 and the ,,isa provider's identity1 which shall be disclosed in accordance with the requirements of section #cjb7;d74 7,f7 ,overall educational finance obligation notice ,the following statement3 ,,important ,,notice ,,required ,,by ,,law3 ,students are cautioned to consider carefully entering into this ,income ,share ,agreement if their total future payment commitment1 including any other forms of education finance1 may exceed #bj percent of their expected future income4 ,your total future obligation may exceed this percentage if you have received additional education financing1 including other income share agreements1 ,department of ,education ,direct or ,,ffel ,loans1 or private education loans44 7c7 ,limitation on educational ,i,s,as 7#a7 ,co-branding prohibited 7,a7 ,in general ,except as provided in subparagraph 7,b7 and paragraph 7#b71 an ,,isa provider1 other than the covered educational institution itself1 shall not use the name1 emblem1 mascot1 or logo of a covered educational institution1 or other words1 pictures1 or symbols identified with a covered educational institution1 in the marketing of educational ,i,s,as in a way that implies that the covered education institution endorses the ,,isa provider's income share agreements4 7,b7 ,special rule ,an ,,isa provider's marketing of an educational ,,isa does not imply that the covered education institution endorses the ,,isa provider's income share agreements if the marketing includes a clear and conspicuous disclosure1 equally prominent and closely proximate to the reference to the covered educational institution1 that the covered educational institution does not endorse the ,,isa provider's income share agreements and that the ,,isa provider is not affiliated with the covered educational institution4 7#b7 ,endorsed ,,isa provider arrangements ,if an ,,isa provider and a covered educational institution have entered into an arrangement under which the covered educational institution agrees to endorse the ,,isa provider's educational ,i,s,as1 and such arrangement is not prohibited by other applicable law or regulation1 paragraph 7#a77;,a7 shall not apply as long as the educational ,,isa marketing includes a clear and conspicuous disclosure1 equally prominent and closely proximate to the reference to the covered educational institution1 that the ,,isa provider's income share agreements are not offered or made by the covered educational institution1 but are made by the ,,isa provider4 7d7 ,educational ,,isa recipient's right ,to accept 7#a7 ,acceptance period ,the ,,isa recipient has the right to accept the terms of an educational ,,isa at any time not later than #cj calendar days following the date on which the ,,isa recipient receives the disclosures required under subsection 7b77#b74 7#b7 ,limitations on changes ,except for changes permitted under paragraph 7#c71 the terms of the educational ,,isa that are required to be disclosed under paragraphs 7#b7 and 7#c7 of subsection 7b7 may not be changed by the ,,isa provider prior to the earlier of-- 7,a7 the date of disbursement of the income share agreement2 or 7,b7 the expiration of the #cj-;day period described in paragraph 7#a71 if the ,,isa recipient has not accepted the income share agreement before within the period4 7#c7 ,exceptions not requiring re-disclosure 7,a7 ,in general ,notwithstanding paragraph 7#b71 nothing in this section shall prevent an ,,isa provider of an educational ,,isa from-- 7i7 withdrawing an offer before consummation of the transaction if the making of the income share agreement would be prohibited by law or if the ,,isa provider has reason to believe that the ,,isa recipient has committed fraud in connection with the income share agreement application2 7ii7 changing the ,,isa payment calculation method and terms if the change will unequivocally benefit the ,,isa recipient2 or 7iii7 reducing the amount funded based upon a certification or other information received from the covered educational institution1 or from the ,,isa recipient1 indicating that the student's cost of attendance has decreased or the ,,isa recipient's other financial aid has increased1 except that1 in such case1 the ,,isa provider may make corresponding changes to the terms of the ,,isa payment calculation method1 ,,isa duration1 and other terms only to the extent that the ,,isa recipient would have received the terms if the ,,isa recipient had applied for the reduced amount financed4 7,b7 ,no new disclosures required ,if the ,,isa provider changes the ,,isa payment calculation method or terms of the income share agreement under this paragraph1 the ,,isa provider shall not be required to-- 7i7 provide the disclosures required under subsection 7b77#b7 for the new income share agreement terms2 or 7ii7 provide an additional #cj-;day period to the ,,isa recipient to accept the new terms of the income share agreement4 7#d7 ,exceptions requiring re-disclosure 7,a7 ,in general ,notwithstanding paragraphs 7#b7 and 7#c71 nothing in this section prevents an ,,isa provider1 at its option1 from changing the ,,isa payment calculation method or terms of the income share agreement to accommodate a specific request by the ,,isa recipient1 such as a request for a different repayment option4 7,b7 ,additional disclosures required ,if the ,,isa provider changes the rate or terms of the income share agreement under subparagraph 7,a71 the ,,isa provider-- 7i7 shall provide the disclosures required under subsection 7b77#b7 and shall provide the ,,isa recipient the #cj-;day period to accept the income share agreement1 as required under paragraph 7#a72 and 7ii7 shall not make further changes to the income share agreement and terms of the loan1 except as specified in paragraph 7#c77;,b74 7,c7 ,no further withdrawals or changes ,except as permitted under paragraph 7#c77;,b71 unless the ,,isa recipient accepts the income share agreement offered by the ,,isa provider in response to the ,,isa recipient's request in accordance with subparagraph 7,a71 the ,,isa provider may not withdraw or change the ,,isa payment calculation method or any terms of the income share agreements for which the ,,isa recipient was approved prior to the ,,isa recipient's request for a change in income share agreement terms under this paragraph4 7e7 ,educational ,,isa recipient's right ,to cancel ,the ,,isa recipient may cancel an educational ,,isa1 without penalty1 until midnight of the third business day following the date on which the ,,isa recipient receives the disclosures required by subsection 7b77#c74 ,no funds may be disbursed for an educational ,,isa until the #c-;business-day period has expired1 absent exceptional circumstances necessitating disbursement based on a request from the covered educational institution4 ,in such a case1 the covered educational institution shall promptly1 upon cancellation by the student1 refund the amounts to the ,,isa provider4 7f7 ,self-,certification form ,for an educational ,,isa intended to be used for the postsecondary educational expenses of a student while the student is attending an institution of higher education1 the ,,isa provider shall obtain1 from the ,,isa recipient or the institution of higher education1 the educational ,,isa certification form developed by the ,secretary under section #aee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai;d71 signed by the ,,isa recipient1 in written or electronic form1 before consummating the educational ,,isa4 7g7 ,provision of ,information by ,preferred ,,isa provider 7#a7 ,in general ,an ,,isa provider that has a preferred ,,isa financing arrangement with a covered educational institution shall1 each year in accordance with paragraph 7#b71 provide to the covered educational institution the information required under subsection 7b77#a7 for each type of educational ,,isa that the ,,isa provider plans to offer to ,,isa recipients for students attending the covered educational institution1 for the period beginning ,july #a of the year in which the information is provided and ending ,june #cj of the following year4 7#b7 ,timing ,for each year of a preferred ,,isa provider financing arrangement1 the ,,isa provider shall provide the information required under paragraph 7#a7 by the later of-- 7,a7 the first day of ,april2 or 7,b7 the date that is #cj days after entering into1 or learning the ,,isa provider is a party to1 a preferred ,,isa provider arrangement4 #cjd4 ,advertising of income share agreements 7a7 ,in general ,the restrictions on advertising of income share agreements shall be consistent with the restrictions placed on advertisements related to extensions of consumer credit as set forth in chapter #c of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #affa et seq474 7b7 ,amendments to the ,truth in ,lending ,act ,the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afja et seq47 is amended-- 7#a7 in section #ajc7;f7 7#ae ,u4,s4,c4 #afjb7;f77-- 7,a7 by striking means the and inserting means-- 7#a7 the 2 7,b7 in paragraph 7#a71 as so designated1 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#b7 for purposes of chapter #c1 shall include an income share agreement1 as defined in section #b of the ,,isa ,student ,protection ,act of #bjbc4 2 7#b7 in section #adb 7#ae ,u4,s4,c4 #affb7-- 7,a7 in the matter preceding paragraph 7#a71 by striking state and inserting state--2 7,b7 in paragraph 7#a71 by striking the period at the end and inserting a semicolon2 7,c7 in paragraph 7#b71 by striking the period at the end and inserting 2 and2 and 7,d7 by adding at the end the following3 7#c7 with respect to an income share agreement 7as defined in section #b of the ,,isa ,student ,protection ,act of #bjbc71 that a specific ,,isa payment calculation method1 ,,isa duration1 ,,isa maximum number of payments1 or income threshold 7as those terms are defined in such section #b7 can be arranged unless the ,,isa provider 7as defined in such section #b7 usually and customarily arranges income share agreements pursuant to the terms so advertised4 2 and 7#c7 in section #add 7#ae ,u4,s4,c4 #affd71 by adding at the end the following3 7f7 ,income share agreements 7#a7 ,definitions ,in this subsection1 the terms income share agreement1 income threshold1 ,,isa duration1 ,,isa maximum number of payments1 and ,,isa payment calculation method have the meanings given those terms in section #b of the ,,isa ,student ,protection ,act of #bjbc4 7#b7 ,application ,this subsection shall apply to any advertisement to aid1 promote1 or assist directly or indirectly any income share agreement subject to the provisions of this chapter4 7#c7 ,disclosure of key terms ,if any advertisement to which this section applies states the ,,isa payment calculation method1 ,,isa duration1 ,,isa maximum number of payments1 income threshold1 or amounts of payments under an income share agreement1 the advertisement shall include the following3 7,a7 ,the ,,isa payment calculation method4 7,b7 ,the ,,isa duration4 7,c7 ,the ,,isa maximum number of payments4 7,d7 ,the income threshold4 4 ,,iv ,other clarifications to support ,,isa programs #dja4 ,treatment under securities laws 7a7 ,income share agreements not treated as securities 7#a7 ,in general ,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 7#b7 ,rule of construction ,nothing in paragraph 7#a7 may be construed to prevent an instrument that is collateralized by1 or serviced by the cash flows of1 an income share agreement from being treated as a security for purposes of any law described in that paragraph4 7b7 ,,isa providers making income share agreements 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 income share agreements 7as that term is defined in section #b of the ,,isa ,student ,protection ,act of #bjbc71 after industrial banking12 and 7#b7 in paragraph 7#e7-- 7,a7 in subparagraph 7,a71 by inserting 1 including purchasing or otherwise acquiring income share agreements 7as that term is defined in section #b of the ,,isa ,student ,protection ,act of #bjbc7 after services2 and 7,b7 in subparagraph 7,b71 by inserting 1 including making income share agreements 7as defined in subparagraph 7,a77 after services4 #djb4 ,treatment under bankruptcy laws ,section #ebc7;a77#h7 of title #aa1 ,united ,states ,code1 is amended1 in the matter preceding subparagraph 7,a71 by striking for-- and inserting for1 other than funds provided as part of an educational ,,isa 7as defined in section #b of the ,,isa ,student ,protection ,act of #bjbc7--4 #djc4 ,consent to continuing release of taxpayer information under educational ,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 provider 7or the provider's successor in interest7 under an educational ,,isa or other 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 educational ,,isa or income share agreement4 #djd4 ,interplay with the ,higher ,education ,act of #aife 7a7 ,title ,,iv definitions 7#a7 ,in general ,section #dhj of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgvv71 as amended by section #gjb of the ,,fafsa ,simplification ,act 7title ,,vii of division ,,ff of ,public ,law #aaf-bfj2 #acd ,stat4 #caia71 is amended-- 7,a7 in subsection 7e7-- 7i7 in paragraph 7#b71 by striking and after the semicolon2 7ii7 in paragraph 7#c71 by striking the period and inserting 2 and2 and 7iii7 by adding at the end the following3 7#d7 any amount provided to the applicant1 or on whose behalf funds are disbursed1 under an income share agreement1 as defined in section #b of the ,,isa ,student ,protection ,act of #bjbc4 2 and 7,b7 in subsection 7f77#a71 by inserting amounts provided to an individual1 or on whose behalf the funds are disbursed1 under an income share agreement1 as defined in section #b of the ,,isa ,student ,protection ,act of #bjbc1 after income producing property14 7#b7 ,effective date ,the amendments made by paragraph 7#a7 shall take effect as if included in section #gjb of the ,,fafsa ,simplification ,act 7title ,,vii of division ,,ff of ,public ,law #aaf-bfj2 #acd ,stat4 #caia7 and in accordance with section #gja7;b7 of such ,act4 7b7 ,program participation agreements ,section #dhg7;d77#a77;,d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;d77#a77;,d77 is amended-- 7#a7 in clause 7ii71 by striking and after the semicolon2 7#b7 in clause 7iii71 by inserting and after the semicolon2 and 7#c7 by adding at the end the following3 7iv7 in the case of educational income share agreements 7as such term is defined in section #b of the ,,isa ,student ,protection ,act of #bjbc7 made by a proprietary institution of higher education1 only the amount of ,,isa payments 7as defined in such section7 received during the applicable institutional fiscal year1 to the extent the amount of such payments on the educational income share agreement does not exceed the income share amount financed under such educational income share agreement2 4 7c7 ,preferred lender arrangement definitions ,section #aea of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai7 is amended-- 7#a7 by redesignating paragraphs 7#c71 7#d71 7#e71 and 7#f7 through 7#i7 as paragraphs 7#d71 7#e71 7#f71 and 7#i7 through 7#ab71 respectively2 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,educational ,,isa ,the term educational ,,isa has the meaning given the term in section #b of the ,,isa ,student ,protection ,act of #bjbc4 2 7#c7 in paragraph 7#f71 as redesignated by paragraph 7#a7-- 7,a7 in subparagraph 7,a77ii71 by inserting or educational ,i,s,as after loans2 7,b7 in subparagraph 7,b71 by striking and after the semicolon2 7,c7 in subparagraph 7,c71 by striking the period at the end and inserting 2 and2 and 7,d7 by adding at the end of the following3 7,d7 notwithstanding subparagraphs 7,a7 and 7,b71 does not include any ,,isa provider with respect to any educational ,,isa secured1 made1 or extended by such ,,isa provider4 2 7#d7 by inserting after paragraph 7#f71 as redesignated by subparagraph 7,a71 the following3 7#g7 ,,isa provider ,the term ,,isa provider has the meaning given the term in section #b of the ,,isa ,student ,protection ,act of #bjbc4 7#h7 ,,isa recipient ,the term ,,isa recipient has the meaning given the term in section #b of the ,,isa ,student ,protection ,act of #bjbc4 2 and 7#e7 in paragraph 7#aa77;,a71 as redesignated by paragraph 7#a7-- 7,a7 in the matter preceding clause 7i71 by inserting or ,,isa provider after lender2 7,b7 in clause 7i71 by inserting or an ,,isa provider provides or otherwise issues educational ,i,s,as after loans2 and 7,c7 in clause 7ii71 by inserting or the educational ,i,s,as of the ,,isa provider after lender4 7d7 ,responsibilities of covered institutions and ,,isa providers regarding preferred lender arrangements ,section #aeb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai;a7 is amended-- 7#a7 in the section heading1 by striking and lenders and inserting lenders1 and ,,isa providers2 7#b7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a7-- 7,i7 in clause 7i7-- 7aa7 in the matter preceding subclause 7,i71 by inserting or educational ,i,s,as after loans2 7bb7 in subclause 7,,ii7-- 7,,aa7 by striking section #aea7c77;,a7 and inserting section #aea7d77;,a72 and 7,,bb7 by striking and at the end2 7cc7 by redesignating subclause 7,,iii7 as subclause 7,,iv72 and 7dd7 by inserting after subclause 7,,ii7 the following3 7,,iii7 the information required to be disclosed pursuant to section #aec7;a77#b77;,a77i71 for an educational ,,isa that is offered pursuant to a preferred lender arrangement of the institution or organization to students of the institution or families of such students2 and 2 and 7,,ii7 in clause 7ii7-- 7aa7 in the matter preceding subclause 7,i7-- 7,,aa7 by striking subparagraph 7,c7 and inserting subparagraph 7,d72 and 7,,bb7 by inserting or educational ,i,s,as after loans2 7bb7 in subclause 7,i71 by striking and after the semicolon2 and 7cc7 by adding at the end the following3 7,,iii7 in the case of a covered institution1 the information described in section #aec7;c7 for each type of educational ,,isa offered pursuant to a preferred lender arrangement of the institution to students of the institution or the families of such students2 and 7,,iv7 in the case of an institution-affiliated organization of a covered institution1 the information in section #cjc7;b77#a7 of the ,,isa ,student ,protection ,act of #bjbc1 for each type of educational ,,isa offered pursuant to a preferred lender arrangement of the organization to students of such institution or the families of such students4 2 7ii7 by redesignating subparagraph 7,c7 as subparagraph 7,d72 and 7iii7 by inserting after subparagraph 7,b7 the following3 7,c7 ,educational ,,isa disclosures ,a covered institution1 or an institution-affiliated organization of such covered institution1 that provides information regarding an educational ,,isa from an ,,isa provider to a prospective ,,isa recipient shall-- 7i7 provide the prospective ,,isa recipient with the information described in section #cjc7;b77#a7 of the ,,isa ,student ,protection ,act of #bjbc for such educational ,,isa2 7ii7 inform the perspective ,,isa recipient that-- 7,i7 the prospective ,,isa recipient may qualify for loans or other assistance under title ,,iv2 and 7,,ii7 the terms and conditions of the loans made1 insured1 or guaranteed under title ,,iv may be more favorable than the provisions of educational ,i,s,as2 and 7iii7 ensure that information regarding educational ,i,s,as is presented in such a manner as to be distinct from information regarding loans that are made1 insured1 or guaranteed under title ,,iv4 2 7,b7 by striking paragraph 7#b7 and inserting the following3 7#b7 ,use of institution name ,a covered institution1 or an institution-affiliated organization of such covered institution1 that enters into a preferred lender arrangement with a lender regarding private education loans or an ,,isa provider regarding educational ,i,s,as shall not agree to the lender's or ,,isa provider's use of the name1 emblem1 mascot1 or logo of such institution or organization1 or other words1 pictures1 or symbols readily identified with such institution or organization1 in the marketing of private education loans or educational ,i,s,as to students attending such institution in any way that implies that the loan or educational ,,isa is offered or made by such institution or organization instead of the lender or ,,isa provider4 2 and 7,c7 by adding at the end the following3 7#d7 ,use of ,,isa provider name ,a covered institution1 or an institution-affiliated organization of such covered institution1 that enters into a preferred lender arrangement with an ,,isa provider regarding educational ,i,s,as shall ensure that the name of the ,,isa provider is displayed in all information and documentation related to such educational ,i,s,as4 2 and 7#c7 by adding at the end the following3 7c7 ,,isa provider responsibilities ,for each of an ,,isa provider's educational ,i,s,as1 the ,,isa provider shall comply with the disclosure requirements of sections #cjb and #cjc of the ,,isa ,student ,protection ,act of #bjbc4 4 7e7 ,disclosures for ,,isa providers participating in preferred lender arrangements ,section #aec of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai;b7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a71 by striking section #aea7c77;,a7 and inserting section #aea7d77;,a72 and 7ii7 by adding at the end the following3 7,c7 ,additional information for educational ,i,s,as 7i7 ,in general ,by not later than #ahj days after the date of enactment of the ,,isa ,student ,protection ,act of #bjbc1 the ,secretary1 in coordination with the ,bureau of ,consumer ,financial ,protection1 shall determine the minimum information that ,,isa providers1 covered institutions1 and institution-affiliated organizations of such covered institutions participating in preferred lender arrangements shall make available regarding educational ,i,s,as4 7ii7 ,consultation and content of minimum disclosures ,in carrying out clause 7i71 the ,secretary shall-- 7,i7 consult with students1 the families of such students1 representatives of covered institutions 7including financial aid administrators1 admission officers1 and business officers71 representatives of institution-affiliated organizations1 secondary school guidance counselors1 and ,,isa providers2 7,,ii7 include1 in the minimum information under clause 7i7 that is required to be made available1 the information required to be disclosed under section #cjc of the ,,isa ,student ,protection ,act of #bjbc2 and 7,,iii7 consider the merits of requiring each covered institution1 and each institution-affiliated organization of such covered institution1 with a preferred lender arrangement to provide prospective ,,isa recipients and the families of such ,,isa recipients the following information for each type of educational ,,isa offered pursuant to such preferred lender arrangement3 7aa7 7,,aa7 ,the ,,isa payment calculation method1 the income threshold1 the ,,isa maximum number of payments 7or a range of the ,,isa maximum number of payments71 the ,,isa payment window 7or a range of the ,,isa payment windows71 and the terms and conditions of the educational ,,isa for the next award year4 7,,bb7 ,in this subclause1 the terms income threshold1 ,,isa maximum number of payments1 ,,isa payment calculation method1 and ,,isa payment window have the meanings given the terms in section #b of the ,,isa ,student ,protection ,act of #bjbc4 7bb7 ,an itemization of the fees or range of fees required to obtain the educational ,,isa4 7cc7 ,any fees or other penalties based on the ,,isa recipient's defaults or late payments4 7dd7 ,the annual or aggregate maximum financed amounts4 7ee7 ,the average financed amounts provided by the ,,isa provider to students who-- 7,,aa7 graduated from such institution in the preceding year with certificates1 undergraduate degrees1 graduate degrees1 and professional degrees1 as applicable2 and 7,,bb7 obtained educational ,i,s,as of such type from the ,,isa provider for the preceding year4 7ff7 ,the consequences for the ,,isa recipient for defaulting on an educational ,,isa4 7gg7 ,contact information for the ,,isa provider4 7hh7 ,other information suggested by the persons and entities with whom the ,secretary has consulted under subclause 7,i74 2 7,b7 in paragraph 7#b7-- 7i7 in subparagraph 7,a7-- 7,i7 in clause 7i71 by striking section #aea7c77;,a7 and inserting section #aea7d77;,a71 or to prospective ,,isa recipients and the families of such ,,isa recipients regarding educational ,i,s,as12 and 7,,ii7 in clause 7ii71 by striking the model disclosure form and inserting a model disclosure form2 7ii7 in subparagraph 7,b7-- 7,i7 in the matter preceding clause 7i7-- 7aa7 by striking a model disclosure form and inserting model disclosure forms2 and 7bb7 by striking and preferred lenders and inserting preferred lenders1 and ,,isa providers2 7,,ii7 in clause 7i71 by inserting ,,isa providers1 after servicers12 and 7,,iii7 in clause 7ii7-- 7aa7 by striking format to the form and inserting the following3 format to-- 7aa7 with respect to education loans1 the form 2 7bb7 by striking section #aea7c77;,a7 and inserting section #aea7d77;,a72 and 7cc7 by adding at the end the following3 7bb7 with respect to educational ,i,s,as1 the form developed by the ,bureau of ,consumer ,financial ,protection under section #cja7d7 of the ,,isa ,student ,protection ,act of #bjbc in order to permit students and the families of students to easily compare educational ,i,s,as2 and 2 and 7iii7 in subparagraph 7,c71 by striking such model disclosure form and inserting the model disclosure forms described in subparagraph 7,b72 7#b7 in subsection 7b71 by striking section #aea7c77;,a7 each place the term appears and inserting section #aea7d77;,a72 7#c7 by redesignating subsection 7c7 as subsection 7d72 7#d7 by inserting after subsection 7b7 the following3 7c7 ,duties of ,,isa providers ,each ,,isa provider that has a preferred lender arrangement with respect to educational ,i,s,as with a covered institution1 or an institution-affiliated organization of such covered institution1 shall annually1 by a date determined by the ,secretary1 provide to such covered institution or such institution-affiliated organization1 and to the ,secretary1 the information the ,secretary requires pursuant to subsection 7a77#b77;,a77i7 for the educational ,i,s,as that the ,,isa provider plans to offer pursuant to such preferred lender arrangement to students attending such covered institution1 or to the families of such students1 for the next award year4 2 and 7#e7 in subsection 7d71 as redesignated by paragraph 7#c7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a7-- 7,i7 in clause 7i71 by striking section #aea7c77;,a7 and inserting section #aea7d77;,a7 or educational ,,isa2 and 7,,ii7 by adding at the end the following3 7iii7 7,i7 in the case of a covered institution1 the information described in subsection 7c71 for each type of educational ,,isa offered pursuant to a preferred lender arrangement of the institution to students of the institution or the families of such students2 and 7,,ii7 in the case of an institution-affiliated organization of a covered institution1 the information described in section #cjc7;b77#a7 of the ,,isa ,student ,protection ,act of #bjbc1 for each type of educational ,,isa offered pursuant to a preferred lender arrangement of the organization to students of such institution or the families of such students4 2 and 7ii7 in subparagraph 7,b7-- 7,i7 by inserting or ,,isa provider after lender2 and 7,,ii7 by inserting or an educational ,,isa after loan2 and 7,b7 in paragraph 7#b77;,a7-- 7i7 in the matter preceding clause 7i71 by inserting or ,,isa provider after each lender2 7ii7 in clause 7i71 by striking clauses 7i7 and 7ii7 and inserting clauses 7i7 through 7iii71 as applicable2 and 7iii7 in clause 7ii7-- 7,i7 by inserting or ,,isa provider after the lender2 and 7,,ii7 by inserting or educational ,,isa after loan4 7f7 ,self-,certification form for educational ,i,s,as ,section #aee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai;d7 is amended-- 7#a7 by striking the section heading and inserting the following3 ,self-certification forms for private education loans or educational ,i,s,as42 7#b7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a7-- 7i7 by striking the self-certification form and inserting a self-certification form2 7ii7 by inserting and1 in consultation with the ,director of the ,bureau of ,consumer ,financial ,protection1 a self-certification form for educational ,i,s,as that shall be used to satisfy the requirements of section #cjc7;f7 of the ,,isa ,student ,protection ,act of #bjbc after ,act2 and 7iii7 by striking ,such form and inserting ,each form2 and 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,a71 by inserting or educational ,,isa1 as applicable after loan2 and 7ii7 in subparagraph 7,c71 by inserting or educational ,,isa1 as applicable after loan2 and 7#c7 in subsection 7b71 by striking the form and inserting a form4 7g7 ,conforming amendments ,section #aed of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajai;c7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by inserting for education loans after the model disclosure form2 and 7,b7 by striking section #aea7c77;,a7 and inserting section #aea7d77;,a72 and 7#b7 in subsection 7b77#b71 by inserting for education loans after model disclosure form4 ,v ,applying existing consumer protections to income share agreements #eja4 ,equal access to income share agreements 7a7 ,activities constituting discrimination ,it shall be unlawful for any ,,isa provider to discriminate against any applicant1 with respect to any aspect of an income share agreement-- 7#a7 on the basis of race1 color1 religion1 national origin1 sex or marital status1 or age 7provided the applicant has the capacity to contract72 7#b7 because all or part of the applicant's income derives from any public assistance program 7except for those excluded from the definition of income established by the income share agreement72 or 7#c7 because the applicant has in good faith exercised any right under this ,act4 7b7 ,activities not constituting discrimination ,it shall not constitute discrimination for purpose of subsection 7a7 for an ,,isa provider-- 7#a7 to make an inquiry of the applicant's age or of whether the applicant's income derives from any public assistance program1 if such inquiry is for the purpose of determining the amount and probable continuance of income levels1 credit history1 or other pertinent element of creditworthiness as provided in regulations of the ,bureau2 7#b7 to use any empirically derived credit system that considers age if that system is demonstrably and statistically sound in accordance with regulations of the ,bureau1 except that in the operation of such a system1 the age of an elderly applicant may not be assigned a negative factor or value2 7#c7 to make an inquiry of1 or to consider the age of1 an elderly applicant when the age of that applicant is to be used by the creditor in the extension of credit in favor of the applicant2 or 7#d7 to use any empirically derived system that considers the expected future income of an applicant to determine whether to approve an application or to establish the financial and other terms of an income share agreement1 if that empirically derived system is demonstrably and statistically sound and reasonably designed such that approved applicants are all reasonably expected to pay substantially similar effective annual percentage rates as other similarly situated applicants1 except that in accordance with any regulations of the ,bureau in the operation of such a system to project an applicant's expected future income1 an ,,isa provider-- 7,a7 may not consider an applicant's status as a member or potential member of any of the classes described in subsection 7a72 7,b7 may consider an applicant's current employment status1 current debt and other financial obligations1 or current and past income 7as of the date of application72 or 7,c7 in the case of educational ,i,s,as1 may consider the historical income of consumers who have made comparable progress toward the completion of the educational program in which the applicant is or is expected to be enrolled or toward a reasonably comparable educational program4 7c7 ,additional activities not constituting discrimination ,it shall not be a violation of subsection 7a7 for an ,,isa provider to refuse to extend an income share agreement-- 7#a7 that is offered pursuant to-- 7,a7 any financial assistance program expressly authorized by law for an economically disadvantaged class of persons2 7,b7 any financial assistance program administered by a nonprofit organization for its members or an economically disadvantaged class of persons2 or 7,c7 any special purpose financial assistance program that-- 7i7 is carried out by a for-profit organization to meet special social needs2 and 7ii7 meets standards prescribed in regulations by the ,bureau2 or 7#b7 if the refusal is required by1 or made pursuant to1 a program described in paragraph 7#a74 7d7 ,reason for adverse action2 procedure applicable 7#a7 ,in general ,not later than #cj days 7or such longer reasonable time as specified in regulations of the ,bureau for any class of income share agreement transaction7 after the date on which an ,,isa provider receives a completed application for an income share agreement1 the ,,isa provider shall notify the applicant of-- 7,a7 the action taken by the ,,isa provider with respect to the application2 7,b7 in the case of an adverse action1 a clear and accurate disclosure of the applicant's right to a written statement of reasons in accordance with paragraph 7#b7 within #fj days after receiving the notice under this paragraph2 and 7,c7 the identity of the person or office from which the statement of reasons described in paragraph 7#b7 may be obtained4 7#b7 ,statement of reasons 7,a7 ,in general ,each applicant against which an adverse action is taken shall be entitled to a written statement from the applicable ,,isa provider regarding the specific reasons for that adverse action1 if the request is made by the applicant not later than #fj days after receiving the notice of an adverse action under paragraph 7#a74 7,b7 ,timing ,an ,,isa provider shall provide an applicant with the statement of reasons under subparagraph 7,a7 by the date that is not more than #cj days after the date of the consumer's request4 7,c7 ,oral statement ,notwithstanding subparagraph 7,a71 the statement described in this paragraph may be provided orally if the oral notification advises the applicable applicant of the right of the applicant to have the statement of reasons confirmed in writing1 upon written request by the applicant4 7,d7 ,third-party request ,if a third party requests that an ,,isa provider make a specific extension of an income share agreement directly or indirectly to an applicant1 the statement under this paragraph may be made directly by the ,,isa provider1 or indirectly through the third party1 if the identity of the ,,isa provider is disclosed4 7,e7 ,verbal statements ,the requirements of this paragraph may be satisfied by a verbal statement or notification in the case of an ,,isa provider that acted on not more than #aej applications during the calendar year preceding the calendar year in which the applicable adverse action is taken1 as determined under regulations of the ,bureau4 7e7 ,regulations 7#a7 ,in general 7,a7 ,issuance of regulations ,the ,bureau shall prescribe regulations to carry out the purposes of this section4 7,b7 ,contents ,the regulations prescribed under subparagraph 7,a7 may contain such classifications1 differentiation1 or other provisions1 and may provide for such adjustments for any class of transactions1 as in the judgment of the ,bureau are necessary or proper to effectuate the purposes of this section1 to prevent circumvention or evasion of this section1 or to facilitate or substantiate compliance with this section4 7#b7 ,consistent with ,equal ,credit ,opportunity ,act ,in prescribing regulations under paragraph 7#a71 the ,bureau shall be guided by the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq47 and part #ajjb of title #ab1 ,code of ,federal ,regulations1 or any successor regulations4 7#c7 ,exempt transactions 7,a7 ,in general ,subject to subparagraph 7,b71 the regulations prescribed under paragraph 7#a7 may exempt from the provisions of this section any class of transactions that is not primarily for personal1 family1 or household purposes1 or any business or commercial income share agreement or investment contract made available by a financial institution1 except that a particular type of income share agreement within such a class may be exempted only if the ,bureau makes an express finding that applying this section1 or of any provision of this section1 to the income share agreement would not contribute substantially to effectuating the purposes of this section4 7,b7 ,limitation ,an exemption granted under subparagraph 7,a7 shall be-- 7i7 for not longer than #e years2 and 7ii7 extended only if the ,bureau makes a subsequent determination1 in the manner described by that subparagraph1 that the exemption remains appropriate4 7#d7 ,maintenance of records ,pursuant to the regulations prescribed under paragraph 7#a71 an entity making business or commercial income share agreements shall maintain such records or other data relating to those agreements as may be necessary to evidence compliance with this section or enforce any action pursuant to the authority of this section1 except that in no event shall those records or data be maintained for a period of less than #a year4 7#e7 ,deference ,notwithstanding any power granted to any ,federal agency under this section1 the deference that a court affords to a ,federal agency with respect to a determination made by that agency relating to the meaning or interpretation of any provision of this section that is subject to the jurisdiction of the agency shall be applied as if that agency were the only agency authorized to apply1 enforce1 interpret1 or administer the provisions of this section4 7f7 ,enforcement ,the administrative enforcement of this section shall be consistent with section #gjd of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c7 and the regulations implementing such section #gjd4 7g7 ,self-,testing and self-,correction ,the incentives for self-testing and self-correction under section #gjd;,a of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#a71 and the regulations implementing such section #gjd;,a1 shall apply to ,,isa providers offering income share agreements4 7h7 ,applicability of other laws ,section #gje of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;d71 and the regulations implementing such section #gje1 shall apply to ,,isa providers offering income share agreements in the same manner in which those provisions apply to creditors offering loan products4 7i7 ,civil liability ,section #gjf of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;e71 and the regulations implementing such section #gjf1 shall apply to ,,isa providers offering income share agreements4 7j7 ,reports by ,bureau and ,attorney ,general 7#a7 ,in general ,each year1 the ,bureau and the ,attorney ,general shall1 respectively1 submit to ,congress reports concerning the administration of the functions of the ,bureau and the ,attorney ,general1 respectively1 under this section1 including such recommendations as the ,bureau and the ,attorney ,general1 respectively1 determine necessary or appropriate4 7#b7 ,additional information ,each report of the ,bureau submitted under paragraph 7#a7 shall include the assessment of the ,bureau of the extent to which compliance with the requirements of this title is being achieved and a summary of the enforcement actions taken by each of the agencies assigned administrative responsibilities under subsection 7f74 #ejb4 ,prohibition on requiring preauthorized electronic fund transfers under the ,electronic ,fund ,transfer ,act ,section #iac7a7 of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afick7#a77 is amended by inserting 1 or the entering into an educational ,,isa or an income share agreement 7as those terms are defined in section #b of the ,,isa ,student ,protection ,act of #bjbc7 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 ,income share agreement information ,with respect to an income share agreement 7as that term is defined in section #b of the ,,isa ,student ,protection ,act of #bjbc71 a consumer report made by a consumer reporting agency-- 7#a7 may include a description of the contract terms of the income share agreement and1 subject to subsection 7a71 information with respect to amounts that are owed under the income share agreement2 and 7#b7 may not include any speculation about future amounts that may be owed under the income share agreement1 including the reporting of any payment caps or early termination amounts4 4 7b7 ,regulations ,the ,bureau shall promulgate regulations with respect to the manner in which ,,isa providers may furnish1 and consumer reporting agencies may report1 information regarding income share agreements4 #ejd4 ,treatment under 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 such an obligation or alleged obligation arising out of an income share agreement1 as that term is defined in section #b of the ,,isa ,student ,protection ,act of #bjbc before the period at the end2 and 7#b7 in paragraph 7#f71 in the first sentence1 by inserting 1 including an ,,isa provider 7as defined in section #b of the ,,isa ,student ,protection ,act of #bjbc71 after means any person4 7b7 ,rules 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 income share agreements as debts1 once the ,,isa recipient owes any amounts to the ,,isa provider under the income share agreement2 or 7#b7 ,,isa providers as lenders1 once the ,,isa recipient owes any amounts to the ,,isa provider under the applicable income share agreement4 #eje4 ,treatment of educational income share agreements for purposes of ,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 educational income share agreements ,the ,secretary of ,defense shall prescribe regulations to apply this section to educational ,i,s,as 7as that term is defined in section #b of the ,,isa ,student ,protection ,act of #bjbc71 and an educational ,,isa shall be deemed to meet the annual percentage rate of interest limitation under subsection 7b7 of this section if the educational ,,isa1 as applicable1 would meet the requirements of section #ajb7;b7 of such ,act 7related to appropriate risk sharing7 but with reference to the rate specified in subsection 7b7 of this section4 4 #ejf4 ,treatment under the ,servicemembers ,civil ,relief ,act ,section #bjg of the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 #cicg7 is amended-- 7#a7 in subsection 7d7-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as paragraphs 7#b7 and 7#c71 respectively2 and 7,b7 by inserting before paragraph 7#b71 as redesignated by subparagraph 7,a71 the following new paragraph3 7#a7 ,educational income share agreement ,the term educational income share agreement has the meaning given the term educational ,,isa in section #b of the ,,isa ,student ,protection ,act of #bjbc4 2 7#b7 by redesignating subsections 7d7 and 7e7 as subsections 7e7 and 7f71 respectively2 and 7#c7 by inserting before subsection 7e71 as redesignated by paragraph 7#b71 the following new subsection 7d73 7d7 ,educational income share agreements 7#a7 ,in general ,an educational income share agreement shall be considered to be in compliance with the requirements of subsection 7a7 if such agreement is compliant with the requirements of section #ajb7;b7 of the ,,isa ,student ,protection ,act of #bjbc4 7#b7 ,interest rate ,in carrying out paragraph 7#a7 of this subsection1 the interest rate referred to in section #ajb7;b7 of such ,act shall be deemed to be the rate of interest specified in subsection 7a7 of this section4 4 #ejg4 ,preservation of consumers' claims and defenses 7a7 ,application of ,holder in ,due ,course ,rule to income share agreements ,beginning on ,january #a1 #bjbd1 for purposes of applying part #dcc of title #af1 ,code of ,federal ,regulations 7commonly known as the ,holder in ,due ,course ,rule or the ,holder ,rule71 the term consumer credit contract1 as defined in section #dcc4a of such title1 shall include income share agreements that-- 7#a7 involve the advancing of funds to1 or on behalf of1 a consumer in return for the consumer's agreement to an income share agreement2 and 7#b7 are related1 in whole or substantial part1 to a purchase of goods or services from a seller who-- 7,a7 refers the consumer to the provider of the income share agreement2 or 7,b7 is affiliated with the provider of the income share agreement by common control1 contract1 or business arrangement4 7b7 ,disclosures ,in applying section #dcc4b of title #af1 ,code of ,federal ,regulations1 to a consumer credit contract that is an income share agreement described in subsection 7a7-- 7#a7 in lieu of the disclosure required under section #dcc4b7;a7 of title #af1 ,code of ,federal ,regulations1 the contract shall contain the following disclosure in at least #aj point1 bold face type3 ,,notice ,,any ,,holder ,,of ,,this ,,income ,,share ,,agreement ,,is ,,subject ,,to ,,all ,,claims ,,and ,,defenses ,,which ,,the ,,isa ,,recipient ,,could ,,assert ,,against ,,the ,,seller ,,of ,,the ,,goods ,,or ,,services ,,obtained ,,under ,,the ,,income ,,share ,,agreement ,,or ,,with ,,the ,,proceeds ,,of ,,the ,,income ,,share ,,agreement4 ,,any ,,recovery ,,by ,,the ,,isa ,,recipient ,,under ,,such ,a ,,claim ,,or ,,defense ,,shall ,,not ,,exceed ,,amounts ,,paid ,,by ,,the ,,isa ,,recipient ,,under ,,the ,,income ,,share ,,agreement4 2 and 7#b7 in lieu of the disclosure required under section #dcc4b7;b7 of title #af1 ,code of ,federal ,regulations1 the contract shall contain the following disclosure in at least #aj point1 bold face type3 ,,notice ,,any ,,holder ,,of ,,this ,,income ,,share ,,agreement ,,is ,,subject ,,to ,,all ,,claims ,,and ,,defenses ,,which ,,the ,,isa ,,recipient ,,could ,,assert ,,against ,,the ,,seller ,,of ,,goods ,,or ,,services ,,obtained ,,under ,,the ,,income ,,share ,,agreement ,,or ,,with ,,the ,,proceeds ,,of ,,the ,,income ,,share ,,agreement4 ,,any ,,recovery ,,under ,,such ,a ,,claim ,,or ,,defense ,,by ,,the ,,isa ,,recipient ,,shall ,,not ,,exceed ,,amounts ,,paid ,,by ,,the ,,isa ,,recipient ,,under ,,the ,,income ,,share ,,agreement4 4 ,,vi ,relation to other laws #fja4 ,treatment under other laws 7a7 ,insurance and wagering ,an income share agreement shall not be treated as a contract for insurance1 or as a betting or wagering contract1 under any ,federal or ,state law1 except in the case of a ,state law that expressly states the law is intended to apply to income share agreements as defined in this ,act4 7b7 ,payments not considered prepayments 7#a7 ,in general ,any right that an ,,isa recipient may have to pay an amount greater than the amount financed under an income share agreement in order to extinguish the income share agreement earlier than the ,,isa duration or ,,isa maximum number of payments shall not be subject to any ,federal or ,state law with respect to prepayment penalties1 as long as-- 7,a7 the prepayment complies with the limitations on income share agreements required under this ,act and the amendments made by this ,act2 and 7,b7 in the case of a ,state law1 the ,state law does not expressly state that the law is intended to apply to income share agreements as defined in this ,act4 7#b7 ,nonapplicability ,an income share agreement under this ,act is not subject to the application of section #adj7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;e771 to the extent it would be applicable to an income share agreement4 7c7 ,treatment of educational ,i,s,as 7#a7 ,assignment of future wages for educational ,i,s,as ,an educational ,,isa shall be a valid1 binding1 and enforceable contract1 notwithstanding any ,state law limiting or otherwise regulating assignments of future wages or other income1 except in the case of a ,state law that expressly states the law is intended to apply to income share agreements as defined in this ,act4 7#b7 ,preemption of ,state law with respect to usury and interest rates for educational ,i,s,as ,an educational ,,isa shall not be subject to a ,state law with respect to usury1 interest rates1 fees1 and charges for credit1 loans1 credit or installment sales1 or a ,state law requiring that installment payments be substantially equal in amount1 except in the case of a ,state law that expressly states the law is intended to apply to income share agreements as defined in this ,act4 7#c7 ,preemption of ,state laws with respect to ability-to-repay and licensing laws for educational ,i,s,as ,an educational ,,isa shall not be subject to a ,state law with respect to ability-to-repay requirements1 and neither an ,,isa provider issuing an educational ,,isa or its successor in interest1 nor any entity servicing any educational ,,isa on behalf of an ,,isa provider or its successor in interest1 shall be subject to any ,state law with respect to licensing or registration1 except in the case of a ,state law that expressly states the law is intended to apply to income share agreements1 as defined in this ,act4 #fjb4 ,relation to ,state law 7a7 ,in ,general 7#a7 ,rule of ,construction ,this ,act1 other than the provisions of titles ,i and ,,iii and section #eja1 may not be construed as annulling1 altering1 or affecting1 or exempting any person subject to the provisions of this ,act from complying with the statutes1 regulations1 orders1 or interpretations in effect in any ,state1 except to the extent that any such provision of law is inconsistent with the provisions of this ,act1 and then only to the extent of the inconsistency4 7#b7 ,greater protection under ,state law ,for purposes of this subsection1 a statute1 regulation1 order1 or interpretation in effect in any ,state is not inconsistent with the provisions of this ,act if the protection that such statute1 regulation1 order1 or interpretation affords to ,,isa recipients or applicants is greater than the protection provided under this ,act4 ,a determination regarding whether a statute1 regulation1 order1 or interpretation in effect in any ,state is inconsistent with the provisions of this ,act may be made by the ,bureau on its own motion or in response to a nonfrivolous petition initiated by any interested person4 7b7 ,relation to other provisions of enumerated consumer laws that relate to ,state law ,no provision of this ,act1 except as provided in titles ,i and ,,iii and section #eja1 shall be construed as modifying1 limiting1 or superseding the operation of any provision of an enumerated consumer law that relates to the application of a law in effect in any ,state with respect to such enumerated consumer law4 7c7 ,additional consumer protection regulations in response to ,state action 7#a7 ,notice of proposed rule required ,the ,bureau shall issue a notice of proposed rulemaking whenever a majority of the ,states has enacted a resolution in support of the establishment or modification of a consumer protection regulation by the ,bureau4 7#b7 ,bureau considerations required for issuance of final regulation ,before prescribing a final regulation based upon a notice issued under paragraph 7#a71 the ,bureau shall take into account whether-- 7,a7 the proposed regulation would afford greater protection to consumers than any existing regulation2 7,b7 the intended benefits of the proposed regulation for consumers would outweigh any increased costs or inconveniences for consumers1 and would not discriminate unfairly against any category or class of consumers2 and 7,c7 a ,federal banking agency has advised that the proposed regulation is likely to present an unacceptable safety and soundness risk to insured depository institutions4 7#c7 ,explanation of considerations ,the ,bureau-- 7,a7 shall include a discussion of the considerations required in paragraph 7#b7 in the ,federal ,register notice of a final regulation prescribed pursuant to this subsection2 and 7,b7 whenever the ,bureau determines not to prescribe a final regulation1 shall publish an explanation of such determination in the ,federal ,register1 and provide a copy of such explanation to each ,state that enacted a resolution in support of the proposed regulation1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 and the ,committee on ,financial ,services of the ,house of ,representatives4 7#d7 ,reservation of authority ,no provision of this subsection shall be construed as limiting or restricting the authority of the ,bureau to enhance consumer protection standards established pursuant to this ,act in response to a motion of the ,bureau or in response to a request by any other interested person4 7#e7 ,rule of construction ,no provision of this subsection shall be construed as exempting the ,bureau from complying with subchapter ,,ii of chapter #e of title #e1 ,united ,states ,code4 ,,vii ,enforcement and reporting #gja4 ,enforcement 7a7 ,enforcing agencies ,subject to subtitle ,b of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeaa et seq471 compliance with the requirements imposed under this ,act shall be enforced under-- 7#a7 section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7 by the appropriate ,federal banking agency1 as defined in section #c7q7 of that ,act 7#ab ,u4,s4,c4 #ahac7q771 with respect to-- 7,a7 national banks1 ,federal savings associations1 and ,federal branches and ,federal agencies of foreign banks2 7,b7 member banks of the ,federal ,reserve ,system 7other than national banks71 branches and agencies of foreign banks 7other than ,federal branches1 ,federal agencies1 and insured ,state branches of foreign banks71 commercial lending companies owned or controlled by foreign banks1 and organizations operating under section #be or #be;,a of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #fja et seq472 and 7,c7 banks and ,state savings associations insured by the ,federal ,deposit ,insurance ,corporation 7other than members of the ,federal ,reserve ,system71 and insured ,state branches of foreign banks2 7#b7 the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq471 by the ,director of the ,national ,credit ,union ,administration1 with respect to any ,federal credit union2 7#c7 part ,a of subtitle ,,vii of title #di1 ,united ,states ,code1 by the ,secretary of ,transportation1 with respect to any air carrier or foreign air carrier subject to that part2 7#d7 the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aia et seq47 7except as provided in section #djf of that ,act 7#g ,u4,s4,c4 #bbf771 by the ,secretary of ,agriculture1 with respect to any activities subject to that ,act2 7#e7 the ,farm ,credit ,act of #aiga 7#ab ,u4,s4,c4 #bjja et seq471 by the ,farm ,credit ,administration with respect to any ,federal land bank1 ,federal land bank association1 ,federal intermediate credit bank1 or production credit association2 7#f7 subtitle ,e of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eefa et seq471 by the ,bureau1 with respect to any person subject to this ,act2 and 7#g7 sections #ba;,b and #ba;,c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghu-#b1 #ghu-#c71 in the case of a broker or dealer1 other than a depository institution1 by the ,securities and ,exchange ,commission4 7b7 ,violations of this ,act deemed violations of pre-,existing statutory requirements2 additional agency powers ,for the purpose of the exercise by any agency referred to in subsection 7a7 of its powers under any ,act referred to in that subsection1 a violation of any requirement imposed under this ,act shall be deemed to be a violation of a requirement imposed under that ,act4 ,in addition to its powers under any provision of law specifically referred to in subsection 7a71 each of the agencies referred to in that subsection may exercise1 for the purpose of enforcing compliance with any requirement imposed under this ,act1 any other authority conferred on it by law4 7c7 ,overall enforcement authority of the ,bureau of ,consumer ,financial ,protection ,except to the extent that enforcement of the requirements imposed under this ,act is specifically committed to some other ,government agency under any of paragraphs 7#a7 through 7#e7 of subsection 7a71 and subject to subtitle ,b of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeaa et seq471 the ,bureau shall be authorized to enforce such requirements4 ,all of the functions and powers of the ,bureau under the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #ecja et seq47 are available to the ,bureau to enforce compliance by any person with the requirements under this ,act1 irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests under the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #ecja et seq474 7d7 ,rules and regulations ,the authority of the ,bureau to issue regulations under this ,act does not impair the authority of any other agency designated in this section to make rules respecting its own procedures in enforcing compliance with requirements imposed under this ,act4 #gjb4 ,reporting requirement for the ,bureau of ,consumer ,financial ,protection ,not less than frequently than once every #e years1 the ,director shall submit to ,congress a report that includes-- 7#a7 information on the prevalence and utilization of educational ,i,s,as and income share agreements2 and 7#b7 any other information pertaining to educational ,i,s,as and income share agreements that the ,director determines is appropriate4