[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3887 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3887
To discharge the qualified loan amounts of each individual, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2019
Mr. Clyburn (for himself, Ms. Schakowsky, Mr. Khanna, and Ms. Clarke of
New York) introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committees on
Ways and Means, and the Judiciary, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To discharge the qualified loan amounts of each individual, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Student Loan Debt Relief Act of
2019''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--LOAN DISCHARGE AND FORBEARANCE
Sec. 101. Loan discharge.
Sec. 102. Automatic administrative forbearance; halting of wage
garnishment.
Sec. 103. Staying and prohibition on commencement of actions for
collection.
Sec. 104. Ineligibility for Treasury Offset.
TITLE II--REFINANCING PROGRAMS
Sec. 201. Refinancing programs.
TITLE III--DISCHARGEABILITY OF STUDENT LOANS IN BANKRUPTCY
Sec. 301. Dischargeability of student loans in bankruptcy.
TITLE IV--GENERAL PROVISIONS
Sec. 401. Report on progress of implementation.
Sec. 402. Notification to borrowers.
Sec. 403. Inapplicability of title IV negotiated rulemaking and master
calendar exception.
Sec. 404. Definitions.
TITLE I--LOAN DISCHARGE AND FORBEARANCE
SEC. 101. LOAN DISCHARGE.
(a) In General.--Subject to subsection (f), not later than the date
that is 12 months after the date of enactment of this Act, the
Secretary of Education shall discharge the qualified loan amount of
each individual, without regard to the repayment status of the loan or
whether the loan is in default.
(b) Qualified Loan Amount.--
(1) In general.--The qualified loan amount of an individual
is an amount equal to the lesser of--
(A) $50,000; and
(B) the aggregate loan obligation on the eligible
Federal loans of the taxpayer that is outstanding on
the date of enactment of this Act or, in the case of
such loans issued under section 460B of the Higher
Education Act of 1965, as added by title II of this
Act, on the date on which such loans are issued under
such section 460B.
(2) Limitation based on adjusted gross income.--The amount
discharged under subsection (a) with respect to an individual
shall be reduced (but not below zero) by $1 for each $3 (or
fraction thereof) by which the taxpayer's adjusted gross income
exceeds $100,000 (twice such amount in the case of a joint
return) for the most recent taxable year ending before the date
of the enactment of this Act.
(c) Method of Loan Discharge.--
(1) In general.--To provide the loan discharge required
under subsection (a), the Secretary is authorized to carry out
a program--
(A) through the holder of the loan, to assume the
obligation to repay the qualified loan amount for a
loan made, insured, or guaranteed under part B of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1071
et seq.);
(B) to cancel the qualified loan amount for a loan
made under part D of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1087a et seq.), or assigned,
referred, or transferred to, or purchased by, the
Secretary under such title IV (20 U.S.C. 1070 et seq.),
including a Federal Direct Stafford Loan issued under
section 460B of the Higher Education Act of 1965, as
added by title II of this Act; and
(C) through the institution of higher education
that made the loan from its student loan fund
established under part E of such title (20 U.S.C.
1087aa et seq.), to assume the obligation to repay the
qualified loan amount for such loan.
(2) Order of loan discharge.--With respect to an individual
with at least 2 eligible Federal loans, the Secretary shall
discharge the loans of the individual as follows (except as
otherwise indicated by the individual):
(A) In the case in which the individual has loans
with different rates of interest, the loans should be
discharged in descending order by rate of interest.
(B) In the case in which the individual has loans
with the same rates of interest, the loans should be
discharged in descending order by amount of outstanding
principal.
(d) Exclusion From Taxable Income.--For purposes of the Internal
Revenue Code of 1986, in the case of an individual, gross income does
not include any amount which (but for this subsection) would be
includible in gross income by reason of the discharge (in whole or in
part) of any loan if such discharge was pursuant to this title.
(e) Taxpayer Information.--
(1) In general.--The Secretary of the Treasury may, upon
written request from the Secretary of Education, disclose to
officers and employees of the Department of Education return
information with respect to a taxpayer who has received
eligible Federal loans that are outstanding on the date
described in subsection (b)(1)(B). Such return information
shall be limited to--
(A) taxpayer identity information with respect to
such taxpayer;
(B) the filing status of such taxpayer; and
(C) the adjusted gross income of such taxpayer.
(2) Restriction on use of disclosed information.--Return
information disclosed under paragraph (1) may be used by
officers and employees of the Department of Education only for
the purposes of, and to the extent necessary in, establishing
the appropriate qualified loan amount of a taxpayer.
(f) Long-Term Settle and Compromise Discharge Authority.--Not later
than the date that is 24 months after the date of enactment of this
Act, the Secretary of Education may use the authority under sections
432(a)(6) and 468(2) of the Higher Education Act of 1965 (20 U.S.C.
1082(a)(6); 1087hh(2)) to discharge loans under this section beyond the
period described in subsection (a) for--
(1) an individual who, through an appeals process
established by the Secretary, successfully appeals a loan
discharge determination by the Secretary under this section;
(2) an individual who, due to special circumstances, misses
a deadline established by the Secretary in the administration
of loan discharges under this section; or
(3) an individual (or a group of individuals) who the
Secretary determines should have received a loan discharge or a
discharge amount that is different from the amount of loan
discharge received under this section, except that a loan
discharge amount received under this subsection may not exceed
the qualified loan amount determined for the individual (or the
group of individuals) under subsection (b).
(g) Private Student Loan Discharge.--Not later than the date that
is 3 months after the date of enactment of this Act, the Secretary of
Education, in coordination with the Secretary of the Treasury and the
Director of the Bureau of Consumer Financial Protection, shall
undertake a campaign to alert borrowers of private education loans--
(1) that such borrowers may be eligible to refinance such
private loans as Federal Direct Stafford Loans under section
460B of the Higher Education Act of 1965, as added by title II
of this Act; and
(2) such Federal Direct Stafford Loans may be eligible for
loan discharge under this section.
(h) Credit Reporting.--In the case of a borrower of an eligible
Federal loan that was in default prior to being discharged under this
section and on which, as a result of such loan discharge, there is no
outstanding balance of principal or interest, the Secretary, guaranty
agency or other holder of the loan shall request any consumer reporting
agency to which the Secretary, guaranty agency or holder, as
applicable, reported the default of the loan, to remove the record of
the default from the borrower's credit history.
(i) Members of Congress.--In this section, the terms ``individual''
and ``taxpayer'' do not include a Member of Congress.
SEC. 102. AUTOMATIC ADMINISTRATIVE FORBEARANCE; HALTING OF WAGE
GARNISHMENT.
During the period beginning on the date of enactment of this Act
and ending on the date that is 12 months after such date of enactment,
the Secretary of Education--
(1) shall place each borrower of an eligible Federal loan
with an outstanding balance, without any further action
required by the borrower (except that the borrower may opt-out
of this section), on an administrative forbearance during which
periodic installments of principal need not be paid, and
interest shall not accrue, on such loan; and
(2) may not issue an order for wage garnishment or
withholding under section 488A of the Higher Education Act of
1965 (20 U.S.C. 1095a) or section 3720D of title 31, United
States Code, initiate proceedings to collect debt through
deductions from pay under such section 488A or 3720D, or
enforce or otherwise require compliance with a wage garnishment
or withholding order issued under such section 488A or 3720D
before the date of enactment of this Act (which shall include
staying any related proceedings).
SEC. 103. STAYING AND PROHIBITION ON COMMENCEMENT OF ACTIONS FOR
COLLECTION.
Until 12 months after the date of enactment of this Act, no
eligible Federal loan may be referred to the Attorney General for any
action seeking collection of any amount owed on that loan and any
action pending as of the date of enactment of this Act shall be stayed.
SEC. 104. INELIGIBILITY FOR TREASURY OFFSET.
Until 12 months after the date of enactment of this Act, no claim
pertaining to an eligible Federal loan may be certified under section
3716(c)(1) of title 31, United States Code.
TITLE II--REFINANCING PROGRAMS
SEC. 201. REFINANCING PROGRAMS.
(a) Program Authority.--Section 451(a) of the Higher Education Act
of 1965 (20 U.S.C. 1087a(a)) is amended--
(1) by striking ``and (2)'' and inserting ``(2)''; and
(2) by inserting ``; and (3) to make loans under section
460A and section 460B'' after ``section 459A''.
(b) Refinancing Program.--Part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by adding at
the end the following:
``SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.
``(a) In General.--Beginning not later than 12 months after the
date of enactment of the Student Loan Debt Relief Act of 2019, the
Secretary shall establish a program under which the Secretary
automatically refinances loans made under this part in accordance with
the provisions of this section, in order to lower the rate of interest
on such loans.
``(b) Refinancing Direct Loans.--
``(1) Federal direct loans.--With respect to each Federal
Direct Stafford Loan, Federal Direct Unsubsidized Stafford
Loan, Federal Direct PLUS Loan, and Federal Direct
Consolidation Loan, for which the first disbursement was made
to a borrower, or the application for the consolidation loan
was received from a borrower, on or before the date of
enactment of the Student Loan Debt Relief Act of 2019, the
Secretary shall, without any further action by the borrower
(other than under subparagraph (C))--
``(A) discharge the liability on such Federal
Direct Stafford Loan, Federal Direct Unsubsidized
Stafford Loan, Federal Direct PLUS Loan, or Federal
Direct Consolidation Loan;
``(B) issue to the borrower a new Federal Direct
Stafford Loan, Federal Direct Unsubsidized Stafford
Loan, Federal Direct PLUS Loan, or Federal Direct
Consolidation Loan, respectively--
``(i) in an amount equal to the sum of the
unpaid principal, accrued unpaid interest, and
late charges of the loan for which the
liability is being discharged under
subparagraph (A); and
``(ii) which has the same terms and
conditions as the original loan, except that
the rate of interest shall be determined under
subsection (c); and
``(C) provide the borrower an opportunity to opt-
out of the refinancing under this paragraph.
``(2) Refinancing ffel program loans as refinanced federal
direct loans.--
``(A) In general.--With respect to each loan that
was made, insured, or guaranteed under part B and for
which the first disbursement was made to a borrower, or
the application for the consolidation loan was received
from a borrower, before July 1, 2010, the Secretary
shall, without any further action by the borrower
(other than to provide the borrower an opportunity to
opt-out of the refinancing under this paragraph), issue
to the borrower a loan made under this part--
``(i) in an amount equal to the sum of the
unpaid principal, accrued unpaid interest, and
late charges of the loan selected to be so
refinanced;
``(ii) the proceeds of which shall be paid
to the holder of the loan selected to be so
refinanced to discharge the liability on such
loan; and
``(iii) which has a rate of interest
determined under subsection (c).
``(B) Designation of loans.--A loan issued under
this section the proceeds of which is discharging the
liability on a loan made, insured, or guaranteed--
``(i) under section 428 shall be a Federal
Direct Stafford Loan;
``(ii) under section 428B shall be a
Federal Direct PLUS Loan;
``(iii) under section 428H shall be a
Federal Direct Unsubsidized Stafford Loan; and
``(iv) under section 428C shall be a
Federal Direct Consolidation Loan.
``(c) Interest Rates.--
``(1) In general.--The interest rate for Federal Direct
Stafford Loans, Federal Direct Unsubsidized Stafford Loans,
Federal Direct PLUS Loans, and Federal Direct Consolidation
Loans issued under this section, shall be a rate equal to--
``(A) in a case in which the original loan is a
loan under section 428 or 428H, a Federal Direct
Stafford loan, or a Federal Direct Unsubsidized
Stafford Loan, that was issued to an undergraduate
student, the rate for Federal Direct Stafford Loans and
Federal Direct Unsubsidized Stafford Loans issued to
undergraduate students for the 12-month period
beginning on July 1, 2016, and ending on June 30, 2017;
``(B) in a case in which the original loan is a
loan under section 428 or 428H, a Federal Direct
Stafford Loan, or a Federal Direct Unsubsidized
Stafford Loan, that was issued to a graduate or
professional student, the rate for Federal Direct
Unsubsidized Stafford Loans issued to graduate or
professional students for the 12-month period beginning
on July 1, 2016, and ending on June 30, 2017;
``(C) in an case in which the original loan is a
loan under section 428B or a Federal Direct PLUS Loan,
the rate for Federal Direct PLUS Loans for the 12-month
period beginning on July 1, 2016, and ending on June
30, 2017; and
``(D) in a case in which the original loan is a
loan under section 428C or a Federal Direct
Consolidation Loan, a rate calculated in accordance
with paragraph (2).
``(2) Interest rates for consolidation loans.--
``(A) Method of calculation.--To determine the
interest rate for a Federal Direct Federal
Consolidation Loan issued under this section, the
Secretary shall--
``(i) determine each original loan for
which the liability was discharged by the
proceeds of a loan under section 428C or a
Federal Direct Consolidation Loan, and
calculate the proportion of the unpaid
principal balance of the loan under section
428C or the Federal Direct Consolidation Loan
that is applicable to each such original loan;
``(ii) use the proportions determined in
accordance with clause (i) and the interest
rate applicable for each original loan, as
determined under subparagraph (B), to calculate
the weighted average of the interest rates on
the loans consolidated into the loan under
section 428C or the Federal Direct
Consolidation Loan; and
``(iii) apply the weighted average
calculated under clause (ii) as the interest
rate for the Federal Direct Consolidation Loan
made under this section and for which the
interest rate is being determined under this
paragraph.
``(B) Interest rates for component loans.--The
interest rate for each original loan for which the
liability is discharged by the proceeds of loan made
under section 428C or a Federal Direct Consolidation
Loan shall be the following:
``(i) The interest rate for any such
original loan made, insured or guaranteed under
section 428 or 428H, or that is a Federal
Direct Stafford Loan or Federal Direct
Unsubsidized Stafford Loan, issued to an
undergraduate student shall be a rate equal to
the lesser of--
``(I) the rate for Federal Direct
Stafford Loans and Federal Direct
Unsubsidized Stafford Loans issued to
undergraduate students for the 12-month
period beginning on July 1, 2016, and
ending on June 30, 2017; or
``(II) the interest rate on such
original loan.
``(ii) The interest rate for any such
original loan made, insured or guaranteed under
section 428 or 428H, or that is a Federal
Direct Stafford Loan, or Federal Direct
Unsubsidized Stafford Loan, issued to a
graduate or professional student shall be a
rate equal to the lesser of--
``(I) the rate for Federal Direct
Unsubsidized Stafford Loans issued to
graduate or professional students for
the 12-month period beginning on July
1, 2016, and ending on June 30, 2017;
or
``(II) the interest rate on the
original loan.
``(iii) The interest rate for any such
original loan made, insured or guaranteed under
section 428B or that is a Federal Direct PLUS
Loan shall be a rate equal to the lesser of--
``(I) the rate for Federal Direct
PLUS Loans for the 12-month period
beginning on July 1, 2016, and ending
on June 30, 2017; or
``(II) the interest rate on the
original loan.
``(iv) The interest rate for any such
original loan that is a loan under section 428C
or a Federal Direct Consolidation Loan shall be
the weighted average of the interest rates
determined under this subparagraph for each
loan for which the liability is discharged by
the proceeds of such consolidation loan.
``(v) The interest rate for any original
loan for which the liability was discharged
with the proceeds of a loan made under section
428C or a Federal Direct Consolidation Loan and
is not described in clauses (i) through (iv)
shall be the interest rate on such original
loan.
``(3) Fixed rate.--The applicable rate of interest
determined under paragraph (1) for a loan issued under this
section shall be fixed for the period of the loan.
``(d) Repayment Periods.--A loan issued under this section shall
not result in the extension of the duration of the repayment period of
the original loan, and the borrower shall retain the same repayment
term that was in effect on the original loan. Nothing in this paragraph
shall be construed to prevent a borrower from electing a different
repayment plan at any time in accordance with section 455(d)(3).
``(e) Original Loan Defined.--In this section, the term `original
loan' means a loan for which the liability is discharged with the
proceeds of a loan issued under this section.
``SEC. 460B. REFINANCING OF PRIVATE EDUCATION LOANS.
``(a) Program Authorized.--
``(1) In general.--During the period beginning on the date
that is 6 months after the date of enactment of the Student
Loan Debt Relief Act of 2019, and ending on the date that is 9
months after such date of enactment, the Secretary, in
consultation with the Secretary of the Treasury, shall carry
out a program under which the Secretary, upon receiving an
application from a borrower who has a loan obligation on an
eligible private education loan, shall issue such borrower a
loan under this section in accordance with the following:
``(A) The loan issued under this section shall be
in an amount equal to the sum of the unpaid principal,
accrued unpaid interest, and late charges of the
private education loan.
``(B) The Secretary shall pay the proceeds of the
loan issued under this section to the private
educational lender (or subsequent holder) of the
private education loan, in order to discharge the
borrower and any cosigners from any remaining
obligation to the lender with respect to the private
education loan.
``(C) The Secretary shall require that the borrower
undergo loan counseling that provides all of the
information and counseling required under clauses (i)
through (viii) of section 485(b)(1)(A) before the
carrying out subparagraphs (A) and (B) with respect to
such borrower.
``(D) The Secretary shall issue the loan as a
Federal Direct Stafford Loan with a rate of interest
determined under subsection (b).
``(b) Interest Rate.--
``(1) In general.--The interest rate for a Federal Direct
Stafford Loan issued under this section shall be--
``(A) in the case of a Federal Direct Stafford Loan
discharging the liability on a private education loan
issued for undergraduate postsecondary educational
expenses, a rate equal to the rate for Federal Direct
Stafford Loans and Federal Direct Unsubsidized Stafford
Loans issued to undergraduate students for the 12-month
period beginning on July 1, 2016, and ending on June
30, 2017; and
``(B) in the case of a Federal Direct Stafford Loan
discharging the liability on a private education loan
issued for graduate or professional degree
postsecondary educational expenses, a rate equal to the
rate for Federal Direct Unsubsidized Stafford Loans
issued to graduate or professional students for the 12-
month period beginning on July 1, 2016, and ending on
June 30, 2017.
``(2) Combined undergraduate and graduate study loans.--In
the case of a Federal Direct Stafford Loan discharging the
liability on a private education loan issued for both
undergraduate and graduate or professional postsecondary
educational expenses, the interest rate shall be a rate equal
to the rate for Federal Direct PLUS Loans for the 12-month
period beginning on July 1, 2016, and ending on June 30, 2017.
``(3) Fixed rate.--The applicable rate of interest
determined under this subsection for a Federal Direct Stafford
Loan issued under this section shall be fixed for the period of
the loan.
``(c) No Inclusion in Aggregate Limits.--The amount of a Federal
Direct Stafford Loan issued under this section, or a Federal Direct
Consolidated Loan to the extent such loan is used to repay such a
Federal Direct Stafford Loan, shall not be included in calculating a
borrower's annual or aggregate loan limits under section 428 or 428H.
``(d) Private Educational Lender Reporting Requirement.--
``(1) Reporting required.--Not later than 6 months after
the date of enactment of the Student Loan Debt Relief Act of
2019, the Secretary, in consultation with the Secretary of the
Treasury and the Director of the Bureau of Consumer Financial
Protection, shall establish a requirement that private
educational lenders report the data described in paragraph (2)
to the Secretary, to Congress, to the Secretary of the
Treasury, and to the Director of the Bureau of Consumer
Financial Protection, in order to allow for an assessment of
the private education loan market.
``(2) Contents of reporting.--The data that private
educational lenders shall report in accordance with paragraph
(1) shall include each of the following about private education
loans (as defined in section 140(a) of the Truth in Lending Act
(15 U.S.C. 1650(a))):
``(A) The total amount of private education loan
debt the lender holds.
``(B) The total number of private education loan
borrowers the lender serves.
``(C) The average interest rate on the outstanding
private education loan debt held by the lender.
``(D) The proportion of private education loan
borrowers who are in default on a loan held by the
lender.
``(E) The proportion of the outstanding private
education loan volume held by the lender that is in
default.
``(F) The proportions of outstanding private
education loan borrowers who are 30, 60, and 90 days
delinquent.
``(G) The proportions of outstanding private
education loan volume that is 30, 60, and 90 days
delinquent.
``(e) Sunset.--The authority to issue loans under this section
shall expire on the date that is 8 months after the date of enactment
of the Student Loan Debt Relief Act of 2019.
``(f) Definitions.--In this section:
``(1) Private educational lender.--The term `private
educational lender' has the meaning given the term in section
140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
``(2) Eligible private education loan.--The term `eligible
private education loan' means a private education loan, as
defined in section 140(a) of the Truth in Lending Act (15
U.S.C. 1650(a)), that--
``(A) was disbursed to the borrower on or before
the date of enactment of the Student Loan Debt Relief
Act of 2019; and
``(B) was for the borrower's own postsecondary
educational expenses for an eligible program at an
institution of higher education participating in the
loan program under this part, as of the date that the
loan was disbursed.''.
(c) Income-Contingent Repayment.--Section 455(d)(1)(D) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) is amended by
inserting before the semicolon at the end the following: ``, and in
calculating the period of time during which a borrower of a loan issued
under section 460A has made monthly payments on such loan for purposes
of the plan described in this subparagraph, the Secretary shall treat
each monthly payment that otherwise meets the requirements of such plan
and that was made on a loan for which the liability is discharged by
the proceeds of such loan issued under section 460A, as a monthly
payment made on such loan issued under section 460A''.
(d) Public Service Loan Forgiveness.--Section 455(m) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(m)) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Treatment of loans issued under section 460a.--
Notwithstanding paragraph (1), in determining the number of
monthly payments made under paragraph (1) on an eligible
Federal Direct Loan issued under section 460A the proceeds of
which discharges the liability on a loan made under this part,
the Secretary shall treat each monthly payment made under
paragraph (1) on the loan before the liability on such loan was
so discharged as a monthly payment made on such eligible
Federal Direct Loan.'';
(e) Income-Based Repayment.--Section 493C of the Higher Education
Act of 1965 (20 U.S.C. 1098e) is amended by adding at the end the
following:
``(f) Treatment of Refinanced Loans.--In calculating the period of
time during which a borrower of a loan issued under section 460A has
made monthly payments on such loan for purposes of subsection (b)(7),
the Secretary shall treat each monthly payment that otherwise meets the
requirements of this section and that was made on a loan for which the
liability is discharged by the proceeds of such loan issued under
section 460A, as a monthly payment made on such loan issued under
section 460A.''.
TITLE III--DISCHARGEABILITY OF STUDENT LOANS IN BANKRUPTCY
SEC. 301. DISCHARGEABILITY OF STUDENT LOANS IN BANKRUPTCY.
(1) Exception to discharge.--Section 523(a) of title 11 of
the United States Code is amended by striking paragraph (8).
(2) Conforming amendment.--Section 1328(a)(2) of title 11
of the United States Code is amended by striking ``(8),''.
TITLE IV--GENERAL PROVISIONS
SEC. 401. REPORT ON PROGRESS OF IMPLEMENTATION.
Not later than the date that is 6 months after the date of
enactment of this Act, the Secretary of Education and the Secretary of
the Treasury shall, jointly, submit to Congress a report on the
progress of the implementation of the provisions of titles I and II.
SEC. 402. NOTIFICATION TO BORROWERS.
(a) In General.--Not later than the date that is 3 months after the
date of enactment of this Act--
(1) the Secretary of Education--
(A) shall take such steps as may be necessary to
notify borrowers of an eligible Federal loan of the
loan discharge available under title I, including the
applicable deadlines;
(B) in coordination with the Secretary of the
Treasury and the Director of the Bureau of Consumer
Financial Protection, shall undertake a campaign to
notify borrowers of loans made, insured, or guaranteed
under part B or D of title IV of the Higher Education
Act of 1965 that such borrowers may be eligible to
refinance such loans at a lower rate of interest under
section 460A of the Higher Education Act of 1965, as
added by title II of this Act, which campaign shall
include--
(i) developing consumer information
materials about the availability of such
refinancing; and
(ii) requiring servicers of such loans to
provide such consumer information to borrowers
in a manner determined appropriate by the
Secretary, in consultation with the Director of
the Bureau of Consumer Financial Protection;
and
(C) in coordination with the Secretary of the
Treasury and the Director of the Bureau of Consumer
Financial Protection, shall undertake a campaign to
alert borrowers of private education loans--
(i) that such borrowers may be eligible to
refinance such private loans as Federal Direct
Stafford Loans under section 460B of the Higher
Education Act of 1965, as added by title II of
this Act; and
(ii) such Federal Direct Stafford Loans may
be eligible for loan discharge under title I of
this Act; and
(2) the Secretary of Health and Human Services, in
consultation with the Secretary of Education, shall take such
steps as may be necessary to inform borrowers of a loan made,
insured, or guaranteed by the Department of Health and Human
Services that is eligible for consolidation under section
455(g) of the Higher Education Act of 1965 (20 U.S.C.
1087e(g)), that the--
(A) borrower may be eligible for a Federal Direct
Consolidation Loan under such section 455(g); and
(B) such Federal Direct Consolidation Loan may be
eligible for loan discharge under title I of this Act.
(b) Notification by Private Education Loan Holders.--Each holder of
a private education loan shall, not later than the date that is 3
months after the date of enactment of this Act, notify the borrower of
such private education loan that the borrower may be eligible to
refinance the private education loan as a Federal Direct Stafford Loan
under section 460B of the Higher Education Act of 1965, and such
Federal Direct Stafford Loan may be eligible for loan discharge under
title I of this Act.
SEC. 403. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING AND MASTER
CALENDAR EXCEPTION.
Sections 482(c) and 492 of the Higher Education Act of 1965 (20
U.S.C. 1089(c), 1098a) shall not apply to this Act or any amendments
made by this Act, or to any regulations promulgated under this Act or
under such amendments.
SEC. 404. DEFINITIONS.
In this Act:
(1) Eligible federal loan.--The term ``eligible Federal
loan'' means--
(A) a loan made, insured, or guaranteed under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1071
et seq.) (other than a loan described in subparagraph
(B)) on or before the date of enactment of this Act; or
(B) a Federal Direct Stafford Loan issued under
section 460B of the Higher Education Act of 1965, as
added by title II of this Act, on a date that is not
later than 9 months after the date of enactment of this
Act.
(2) Private education loan.--The term ``private education
loan'' has the meaning given such term in section 140(a) of the
Truth in Lending Act (15 U.S.C. 1650(a)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(4) Taxpayer.--The term ``taxpayer'' has the meaning given
such term in section 7701 of the Internal Revenue Code of 1986.
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