[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 136 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 136
To provide a consumer protection framework necessary to support the
growth of accessible, affordable, and accountable financing options for
postsecondary education, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 30, 2023
Mr. Young (for himself, Mr. Warner, Mr. Rubio, and Mr. Coons)
introduced the following bill; 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 accessible, affordable, and accountable financing options for
postsecondary education, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``ISA Student
Protection Act of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective date.
TITLE I--NEW CONSUMER PROTECTIONS SPECIFIC TO INCOME SHARE AGREEMENTS
Sec. 101. Prohibition on acceleration; treatment of early completion
mechanisms.
Sec. 102. Consumer protections for educational income share agreements.
Sec. 103. Discharge protections for ISA recipients.
Sec. 104. Limitation on amounts treated as income under educational
ISAs.
TITLE II--TAX TREATMENT OF INCOME SHARE AGREEMENTS
Sec. 201. Tax treatment.
TITLE III--DISCLOSURES APPLICABLE TO INCOME SHARE AGREEMENTS
Sec. 301. Disclosures.
Sec. 302. Required disclosures for income share agreements.
Sec. 303. Additional requirements for educational ISAs.
Sec. 304. Advertising of income share agreements.
TITLE IV--OTHER CLARIFICATIONS TO SUPPORT ISA PROGRAMS
Sec. 401. Treatment under securities laws.
Sec. 402. Treatment under bankruptcy laws.
Sec. 403. Consent to continuing release of taxpayer information under
educational ISAs and income share
agreements.
Sec. 404. Interplay with the Higher Education Act of 1965.
TITLE V--APPLYING EXISTING CONSUMER PROTECTIONS TO INCOME SHARE
AGREEMENTS
Sec. 501. Equal access to income share agreements.
Sec. 502. Prohibition on requiring preauthorized electronic fund
transfers under the Electronic Fund
Transfer Act.
Sec. 503. Treatment under the Fair Credit Reporting Act.
Sec. 504. Treatment under the Fair Debt Collection Practices Act.
Sec. 505. Treatment of educational income share agreements for purposes
of Military Lending Act.
Sec. 506. Treatment under the Servicemembers Civil Relief Act.
Sec. 507. Preservation of consumers' claims and defenses.
TITLE VI--RELATION TO OTHER LAWS
Sec. 601. Treatment under other laws.
Sec. 602. Relation to State law.
TITLE VII--ENFORCEMENT AND REPORTING
Sec. 701. Enforcement.
Sec. 702. Reporting requirement for the Bureau of Consumer Financial
Protection.
SEC. 2. DEFINITIONS.
In this Act:
(1) Adverse action.--The term ``adverse action''--
(A) means a denial or revocation of rights under an
income share agreement, a change in the terms of an
existing income share agreement, or a refusal to grant
an income share agreement in substantially the amount
or on substantially the terms requested; and
(B) 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--
(i) the applicant is delinquent or
otherwise in default; or
(ii) such additional amounts would exceed a
previously established limit on the amount
financed.
(2) Amount financed.--The term ``amount financed'' means,
with respect to an income share agreement, the amounts credited
or advanced by the ISA provider to the ISA recipient or on
behalf of the ISA recipient.
(3) Annual percentage rate.--The term ``annual percentage
rate'' means the annual percentage rate described in section
1026.22(a) of title 12, Code of Federal Regulations.
(4) Applicant.--The term ``applicant'' means, with respect
to an income share agreement, any individual who applies to an
ISA provider directly or indirectly for an extension, renewal,
or continuation of an income share agreement and includes
applications for an additional amount exceeding a previously
established limit on the amount financed.
(5) Bureau.--The term ``Bureau'' means the Bureau of
Consumer Financial Protection.
(6) Comparable loan.--The term ``comparable loan'' means,
with respect to an income share agreement, a loan that--
(A) has an amount financed, as described in section
1026.18(b) of title 12, Code of Federal Regulations,
that is equal to the total amount financed, as defined
in paragraph (2), for the income share agreement;
(B) has--
(i) the same disbursements or financing
dates, payment start date, and frequency of
payments as the income share agreement; and
(ii) an expected number of payments equal
to the ISA maximum number of payments; and
(C) is fully amortized over the ISA duration, with
substantially equal periodic payments of principal and
interest.
(7) Consumer.--The term ``consumer'' means a natural person
using an income share agreement for personal, family, or
household purposes.
(8) Consumer protection regulation.--The term ``consumer
protection regulation'' means a regulation that the Bureau is
authorized to prescribe under Federal consumer financial law,
as defined in section 1002 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5481).
(9) Covered educational institution.--The term ``covered
educational institution''--
(A) means--
(i) an educational institution that would
be an institution of higher education, if such
determination was made without regard to the
institution's accreditation status; and
(ii) an institution-affiliated
organization, as defined in section 151 of the
Higher Education Act of 1965 (20 U.S.C. 1019);
and
(B) includes an agent, officer, or employee of the
institution of higher education or institution-
affiliated organization.
(10) Date of the isa.--The term ``date of the ISA'' means
the date that is the later of--
(A) the date on which the income share agreement is
signed by the ISA recipient and the ISA provider; or
(B) the date on which the income share agreement is
accepted by the ISA recipient and the ISA provider.
(11) Director.--The term ``Director'' means the Director of
the Bureau.
(12) Disbursement.--The term ``disbursement'', when used
with respect to an income share agreement, 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 behalf.
(13) Educational isa; educational income share agreement.--
The term ``educational ISA'' or ``educational income share
agreement''--
(A) means an income share agreement that--
(i) is not made, insured, or guaranteed
under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.) or another
federally subsidized educational finance
program;
(ii) pays amounts to, or on behalf of, the
ISA recipient for--
(I) costs associated with a
postsecondary training program, or any
other program designed to increase the
individual's human capital,
employability, or earning potential
(and not limited to programs eligible
to participate under title IV of the
Higher Education Act of 1965 (20 U.S.C.
1070 et seq.));
(II) any personal expenses (such as
books, supplies, transportation, and
living costs) incurred by the
individual while enrolled in a program
described in subclause (I);
(III) any other costs or expenses
included in the definition of a
``qualified higher education expense'',
as defined in section 529(e)(3)(A) of
the Internal Revenue Code of 1986; and
(IV) the refinancing of loans or
income share agreements used for the
purposes described in subclauses (I)
through (III), and without regard as to
whether the income share agreement is
provided by the educational institution
that the ISA recipient attends; and
(B) does not include a loan, open-end credit, or
any loan or income share agreement that is secured by
real property or a dwelling.
(14) Education loan.--The term ``education loan'' means--
(A) a loan made, insured, or guaranteed under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.) or any other loan made, insured, or guaranteed
by the Federal Government; or
(B) a private education loan, as such term is
defined in section 140(a) of the Truth in Lending Act
(15 U.S.C. 1650(a)).
(15) Income.--The term ``income'' means the ISA Recipient's
income, as established in the income share agreement under
section 302(d)(8), subject to section 104.
(16) Income share agreement.--
(A) In general.--The term ``income share
agreement'' means a financial product whereby--
(i)(I) the ISA provider credits or advances
financing to the ISA recipient or to a third
party on behalf of the ISA recipient; or
(II) if the ISA provider is a merchant
financing the sale of goods or services to the
ISA recipient via the financial product, the
ISA provider credits the amount financed toward
the purchase of such goods or services;
(ii) the ISA recipient is obligated to make
periodic ISA payments (if any become due) to
the ISA provider in the future calculated based
upon and determined by the ISA recipient's
future income;
(iii) the ISA recipient's obligation to
make payments (if any become due) to the ISA
provider is conditional on the ISA recipient's
income exceeding the income threshold set in
the income share agreement;
(iv) there is an ISA duration after which
the obligation is complete regardless of how
much has been paid (as long as the ISA
recipient has paid any prior amounts due);
(v) the ISA provider and the ISA recipient
enter into an agreement that, as of the date of
the ISA, includes each element described in
clauses (i) through (iv); and
(vi) the agreement states that it is an
income share agreement and subject to this Act.
(B) Special rule.--If a provider offers a financial
product that meets the requirements of clauses (i)
through (v) but does not include the statement
described in clause (vi), then the financial product is
not an income share agreement and shall be considered
credit.
(17) 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 period.
(18) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(19) 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 (absent periods of
payment relief pause at the request of the ISA recipient).
(20) ISA financing.--The term ``ISA financing'' means the
disbursement of funds by an ISA provider under an income share
agreement.
(21) ISA maximum number of payments.--The term ``ISA
maximum number of payments'' means the maximum number of ISA
payments (during ISA payment periods in which the ISA
recipient's income is greater than the income threshold) that
an ISA recipient could be required to make.
(22) ISA payment.--The term ``ISA payment''--
(A) means the amount of an ISA recipient's periodic
payment obligation, based on the terms of the income
share agreement, during any payment period for which
the ISA recipient's income is greater than the income
threshold; and
(B) is calculated using the ISA payment calculation
method, based on the ISA recipient's income for the
specified period.
(23) ISA payment calculation method.--The term ``ISA
payment calculation method'' means the ISA percentage, or the
schedule of fixed dollar amounts based on the ISA recipient's
income for a payment period, that is used to calculate an ISA
recipient's ISA payment under the income share agreement.
(24) 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
agreement.
(25) ISA percentage.--The term ``ISA percentage'' means a
percentage of income (or schedule of percentages of income
based on the ISA recipient's income in a given ISA payment
period) used to calculate an ISA recipient's ISA payment
pursuant to an income share agreement.
(26) ISA provider.--The term ``ISA provider'' means a
person that provides financing to an ISA recipient pursuant to
an income share agreement or, in the case of a person who is a
merchant financing the sale of goods or services to the ISA
recipient, the merchant.
(27) ISA recipient.--The term ``ISA recipient'' means a
consumer that receives financing from an ISA provider pursuant
to an income share agreement.
(28) Loan.--The term ``loan'' means a financial product
that--
(A) is credit, as defined in section 1026.2(a) of
title 12, Code of Federal Regulations;
(B) is not an income share agreement; and
(C) 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 interest.
(29) Loan comparison.--The term ``loan comparison'' means
the comparison table required under section 302(d)(9).
(30) Payment relief pause.--The term ``payment relief
pause'' means a period of time that--
(A) is requested by the ISA recipient during which
any payment obligation the ISA recipient would have is
suspended; and
(B) does not count toward an ISA recipient's ISA
payment window or ISA maximum number of payments.
(31) Person.--The term ``person'' means a natural person or
an organization, including a corporation, partnership,
proprietorship, association, cooperative, estate, trust, or
government unit.
(32) Poverty line.--The term ``poverty line'' has the
meaning given the term in section 673 of the Community Services
Block Grant Act (42 U.S.C. 9902).
(33) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(34) State.--The term ``State'' means the several States of
the United States, the Commonwealth of Puerto Rico, the
District of Columbia, Guam, American Samoa, the Virgin Islands,
the Northern Mariana Islands, the Federated States of
Micronesia, the Republic of the Marshall Islands, and the
Republic of Palau.
(35) State law.--The term ``State law'' means--
(A) any law, decision, rule, regulation, or other
action having the effect of a law of any State or any
political subdivision of a State, or any agency or
instrumentality of a State or political subdivision of
a State; and
(B) any law of the United States applicable only to
the District of Columbia.
SEC. 3. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the date that is 180 days after the date of enactment of this Act.
TITLE I--NEW CONSUMER PROTECTIONS SPECIFIC TO INCOME SHARE AGREEMENTS
SEC. 101. PROHIBITION ON ACCELERATION; TREATMENT OF EARLY COMPLETION
MECHANISMS.
(a) No Acceleration.--
(1) 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 agreement.
(2) Effect of acceleration clause.--Any agreement with an
acceleration mechanism described in paragraph (1) shall, for
purposes of all Federal law, be treated as credit under Federal
law and shall not be treated as an income share agreement.
(b) No Impact on Early Completion Mechanisms.--Notwithstanding
subsection (a)--
(1) 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 (such 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 agreement) if the early completion provision is
optional to the ISA recipient and within the ISA recipient's
control; and
(2) such early completion mechanism shall not be treated as
a form of acceleration prohibited under subsection (a), an
early completion penalty, or a prepayment penalty.
SEC. 102. CONSUMER PROTECTIONS FOR EDUCATIONAL INCOME SHARE AGREEMENTS.
(a) Monthly Payment Affordability for Educational ISAs.--
(1) Maximum isa income obligation for educational isas.--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 20 percent of the student's future income
toward the payment of such educational ISA and all other
educational ISAs of the ISA recipient.
(2) Self-certification.--In calculating the portion of a
student's future income for purposes of this subsection, the
ISA provider may rely on a self-certification from the ISA
recipient regarding the ISA recipient's outstanding educational
ISAs, as of the date of the agreement.
(3) Calculation methodology and requirements.--
(A) 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
ISAs of the ISA recipient as of the date of the
agreement, the ISA provider shall calculate the
aggregate future burden--
(i) in any case where the income threshold
of the educational ISA is less than the maximum
described in subparagraph (B), at hypothetical
future income levels from such income threshold
to such maximum, in increments of $10,000; and
(ii) in any case where the income threshold
of the educational ISA is equal to or greater
than such maximum, at such income threshold.
(B) Maximum.--The maximum described in this
subparagraph shall be the greater of--
(i)(I) for fiscal year 2023, $70,000; or
(ii) for fiscal year 2024 and each
subsequent fiscal year, the maximum for the
preceding fiscal year--
(I) increased by the percentage
increase in the consumer price index;
and
(II) rounded to the nearest $1,000;
and
(iii) in the case of an ISA recipient who
has (as of the date of the agreement), or has
applied for, an educational ISA that uses a
schedule of income percentages or a schedule of
fixed amounts as the ISA payment calculation
method, the highest income level referenced by
a schedule for any such educational ISA.
(C) Calculation.--
(i) In general.--The terms of an
educational ISA for which the ISA recipient has
applied cannot cause the student's aggregate
future burden (defined as the total amounts
expected to be due under all educational ISAs
of the ISA recipient as of the date of the
agreement, and all educational ISAs for which
the ISA recipient is applying) to exceed the
limit in paragraph (1) at any of the income
increments described in subparagraph (A).
(ii) Calculation method.--For the purpose
of calculating the percentage burden of an
educational ISA at a given future income level,
the ISA provider shall, as applicable, use--
(I) the income percentage that
would be applicable for the educational
ISA at such income level; or
(II) the fixed amount applicable
for the educational ISA at such income
level, divided by such income level.
(4) Protections during periods of low earnings.--
(A) 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
ISA, the ISA payment obligation is zero dollars.
(B) 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 period, minus the subtraction of any ISA
obligation, is not less than 200 percent of the poverty
line for a single person (as defined in section 673 of
the Community Services Block Grant Act (42 U.S.C.
9902)), prorated for the payment period.
(5) Required payment relief pauses.--An educational ISA
shall offer not less than 3 months of voluntary payment relief
pauses (as long as the ISA recipient's current income at the
time of requesting the payment relief pause is equal to or less
than 400 percent of the poverty line) for a single individual)
for every 30 income-determined payments required under the
educational ISA.
(b) Ensuring Appropriate Risk Sharing for Educational ISAs.--The
payments required under an educational ISA for an individual with
income during the payment term that is less than or equal to 300
percent of the poverty line for a single individual, prorated for the
payment period, 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 987(b) of title
10, United States Code.
(c) Limits on Duration of Educational ISA Obligation.--
(1) ISA maximum number of payments.--The ISA maximum number
of payments shall not exceed 240 monthly payments.
(2) ISA duration.--The ISA duration of an educational ISA
shall not exceed 360 months (except in the case of an extension
requested by the ISA recipient).
(d) 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 Act.
SEC. 103. DISCHARGE PROTECTIONS FOR ISA RECIPIENTS.
(a) 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 (determined without regard to whether
the recipient receives such benefits), all further obligations of the
ISA recipient under the income share agreement shall terminate, except
those accruing before the date such a determination would apply.
(b) Death.--Upon the death of an ISA recipient, all further
obligations of the ISA recipient under the income share agreement shall
terminate, except those obligations accruing before the ISA recipient's
date of death.
SEC. 104. LIMITATION ON AMOUNTS TREATED AS INCOME UNDER EDUCATIONAL
ISAS.
(a) In General.--For purposes of calculating the obligation of an
ISA recipient to make ISA payments under an educational ISA, the income
of the ISA recipient shall not include--
(1) the income of any child or dependent of the ISA
recipient;
(2) any item of income which is not included in the gross
income of the ISA recipient;
(3) any amount received from an individual retirement plan
(as defined in section 7701 of the Internal Revenue Code of
1986), a pension, or an annuity; or
(4) any social security benefit (as defined in section 86
of such Code).
(b) Estimating Income.--
(1) In general.--In the event that an ISA recipient fails
to provide income documentation as reasonably required by the
income share agreement, 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 methods, to
the extent disclosed in the income share agreement:
(A) Assigning an income amount obtained from a
reasonably reliable third party or a consumer reporting
agency, as defined in section 603(f) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(f)).
(B) If the participant previously provided income
documentation or has had an income assigned in the
preceding 1-year period, assuming that such income has
increased by up to 10 percent, but such increase may
not be applied more than once per 1-year period.
(C) Contacting the employer of the participant, or
any person or entity reasonably believed to be the
employer of the participant, to obtain, verify, or
update the income information of the participant.
(D) Contacting the State revenue department or the
Internal Revenue Service to obtain the most recent
information available about the income of the
participant.
(E) For educational ISA providers, in any case
where the ISA provider has no prior history of income
information from the participant, assigning a
reasonable qualified income based on--
(i) the median income for individuals
working in the profession for which the
educational program of the participant was
intended to prepare the participant, as
determined by information published by the
Bureau of Labor Statistics or other reasonably
reliable publicly available data sources; or
(ii) the median income of participants who
attended the same or a reasonably comparable
covered educational program or course of study,
as determined by information published by the
Bureau of Labor Statistics or other reasonably
reliable publicly available data sources.
(2) Notification.--If an ISA provider assigns an income to
the income share agreement of a participant, the ISA provider--
(A) shall notify the participant in the monthly
billing statement, and in each billing statement
thereafter while the assigned income remains applicable
to the income share agreement of the participant, that
income has been assigned and of the rights of the
participant under this section;
(B) 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 (1) and if
the participant has authorized ongoing access to the
participant's return information under section 403,
shall request such information in each year of the
payment term;
(C) if the participant does provide income
information as reasonably required by the income share
agreement within 1 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
403, then, within 15 days after the date on which the
ISA provider receives such information, shall--
(i) update each prior instance in which
assigned income was applied using such new
income information; and
(ii) reconcile any difference in amounts
owed by the participant based on those updates
to prior income; and
(D) if the participant provides income information
more than 1 year after the ISA provider first assigned
income to the income share agreement of the
participant, may, but shall not be obligated to, update
each prior instance in which assigned income was
applied using the income information provided by the
participant.
(3) 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 3 years after the end of that income share
agreement.
TITLE II--TAX TREATMENT OF INCOME SHARE AGREEMENTS
SEC. 201. TAX TREATMENT.
(a) In General.--Subchapter B of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``PART XII--RULES RELATING TO QUALIFIED EDUCATIONAL INCOME SHARING
AGREEMENTS
``Sec. 293. Rules related to qualified educational ISAs.
``SEC. 293. RULES RELATED TO QUALIFIED EDUCATIONAL ISAS.
``(a) In General.--For purposes of this title, an educational ISA
shall not be treated as indebtedness.
``(b) Treatment of ISA Recipient.--
``(1) Income exclusion.--In the case of an individual--
``(A) 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
2(13)(A)(ii)(II) of the ISA Student Protection Act of
2023.
``(B) 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 ISA, gross income
shall not include the amount of such excess.
``(2) Certain amounts treated as interest on qualified
education loans.--
``(A) In general.--For purposes of section 221, the
amount described in subparagraph (B) with respect to
any educational ISA shall be treated as interest paid
by the taxpayer during the taxable year on a qualified
education loan.
``(B) Amount described.--The amount described in
this subparagraph with respect to any educational ISA
is, for any taxable year, the excess of--
``(i) amounts paid by the taxpayer to
another person under the terms of a qualified
educational ISA during such taxable year, over
``(ii) the excess of--
``(I) the aggregate amount received
under such qualified educational ISA
during such taxable year and all
preceding taxable years, over
``(II) the aggregate amounts paid
by the taxpayer to another person under
the terms of such qualified educational
ISA during all preceding taxable years.
``(3) Amounts treated as educational assistance.--For
purposes of section 127(c)(1)(B), 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 loan.
``(c) 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--
``(1) the aggregate amount of financing provided by the
taxpayer under such educational ISA, over
``(2) the aggregate amount of such payments taken into
account under this subsection by the taxpayer for all preceding
taxable years.
``(d) Definitions.--For purposes of this section--
``(1) Educational isa.--The term `educational ISA' has the
meaning given such term under section 2 of the ISA Student
Protection Act of 2023.
``(2) 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 1965 (20 U.S.C. 1070 et
seq.).''.
(b) Conforming Amendment.--The table of parts for subchapter B of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``PART XII--Rules Relating to Qualified Educational Income Sharing
Agreements''.
TITLE III--DISCLOSURES APPLICABLE TO INCOME SHARE AGREEMENTS
SEC. 301. DISCLOSURES.
The following disclosures shall be provided to ISA recipients:
(1) In general.--An ISA provider (regardless of whether the
ISA provided is an educational ISA) shall provide, to any
individual that applies for or signs an income share agreement,
a written document that clearly and simply discloses the
information required by this Act.
(2) Application.--The provisions of this title shall not
apply to--
(A) income share agreements primarily for business,
commercial, or agricultural purposes;
(B) government or governmental agencies or
instrumentalities;
(C) organizations; or
(D) transactions for which the Bureau, by rule,
determines that coverage under the provisions of this
title are not necessary to carry out the purposes of
this title.
(3) Regulations.--Not later than 270 days after the date of
enactment of this Act, the Bureau shall prescribe regulations
to carry out the purposes of this title, which may contain such
additional requirements, classifications, differentiations, or
other provisions, and may provide for such adjustments and
exceptions for all or any class of transactions, as in the
judgment of the Bureau are necessary or proper to effectuate
the purposes of this title, to prevent circumvention or evasion
thereof, or to facilitate compliance therewith.
(4) Model disclosure forms and clauses.--
(A) In general.--Not later than 270 days after the
date of enactment of this Act, the Bureau shall publish
a model integrated disclosure for educational ISAs 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 disclosures.
(B) Consideration.--In devising the disclosure
forms required under subparagraph (A), the Bureau shall
consider the use by ISA providers of data processing or
similar automated equipment.
(C) 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
section.
(D) 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--
(i) uses any appropriate model form or
clause as published by the Bureau under this
section; or
(ii) uses any such model form or clause and
changes the form or clause by--
(I) deleting any information that
is not required under this title; or
(II) rearranging the format, if in
making such deletion or rearranging the
format, the ISA provider does not
affect the substance, clarity, or
meaningful sequence of the disclosure.
(5) 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 553 of title 5, United States Code.
(6) Effective dates of regulations containing new
disclosure requirements.--
(A) In general.--Any regulation of the Bureau, or
any amendment or interpretation thereof, 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 1 which follows by not
less than 6 months the date of promulgation, except
that the Bureau may at its discretion take interim
action by regulation, amendment, 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 practices.
(B) Compliance.--Notwithstanding subparagraph (A),
any ISA provider may comply with any such newly
promulgated disclosure requirements prior to the
effective date of the requirements.
(7) Deference.--Notwithstanding any power granted to any
Federal agency under this Act, 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 Act, shall be applied as if the Bureau were
the only agency authorized to apply, enforce, interpret, or
administer the provisions of this Act.
SEC. 302. REQUIRED DISCLOSURES FOR INCOME SHARE AGREEMENTS.
(a) Disclosures Requirements for All ISAs.--
(1) In general.--The ISA provider shall make the
disclosures required by this section clearly and conspicuously
in writing, in a form that the ISA recipient may retain.
(2) 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 (15 U.S.C. 7001 et seq.).
(3) Other requirements.--The disclosures required by this
section shall--
(A) be grouped together;
(B) be segregated from anything that is not such a
disclosure; and
(C) only contain information directly related to
the disclosures required under this section.
(b) Use of Estimates.--If any information necessary for an accurate
disclosure is unknown to the ISA provider, the ISA provider shall make
the disclosure based on the best information reasonably available at
the time the disclosure is provided to the ISA recipient, and shall
state clearly that the disclosure is an estimate.
(c) Multiple ISA Providers, Multiple ISA Recipients.--
(1) Multiple isa providers.--In any case where an income
share agreement transaction involves more than one ISA
provider, 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 providers.
(2) Multiple isa recipients.--In any case where an income
share agreement transaction has more than one ISA recipient,
the disclosures may be made to any ISA recipient whose income
will be used to calculate the ISA payments due to the ISA
provider.
(d) Content of Disclosures.--An ISA provider of an income share
agreement (regardless of whether the income share agreement is an
educational ISA) shall provide, to any person that applies for or signs
a consumer income share agreement, a written document that clearly and
simply discloses the following information:
(1) A statement that the income share agreement is not a
fixed payment installment loan, 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 income. 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 income, or that also
compares such periodic payments under the ISA at different
income levels with a loan product.
(2) In the case of an educational ISA, the following
statement: ``This income share agreement is not a grant or
scholarship. If your income is above the Income Threshold, you
will have to make payments under this income share
agreement.''.
(3) The following statement: ``Payments due under this
income share agreement are determined by your income. Your
payments are calculated using the ISA Payment Calculation
Method described in your ISA. The amount you pay may be more
than, equal to, or less than the amount financed.''.
(4) In a series of boxes or other device designed to
feature the following information more prominently than
elsewhere in the income share agreement disclosures, the
following information:
(A) The term ``Amount Financed'' and the dollar
amount of the amount funded, followed by a description
that states, ``The amount of funds you will receive or
that will be credited on your behalf.''.
(B) The term ``ISA Payment Calculation Method'' and
the following:
(i) In the case of an ISA payment
calculation method that is a percentage (or
schedule of percentages), such percentage (or
schedule of percentages) followed by a
description that states, ``The percentage of
your income used to calculate your ISA
Payment.'' and, if the ISA payment calculation
method is a schedule of percentages, an
explanation of where the ISA recipient can
learn more about how the ISA recipient's income
percentage is determined.
(ii) 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 period, the
schedule of fixed amounts (or a reference to
the location of the schedule in the ISA)
followed by a description that states, ``The
amount of your ISA Payment will vary based on
your income. See your ISA for more
information.''.
(C) The term ``Maximum Number of Income-Determined
Payments'' and the ISA maximum number of payments,
followed by a description that states, ``The maximum
number of ISA payments you will make when your income
is above the Income Threshold.''.
(D) The term ``Maximum Duration'' and the ISA
duration, followed by a description that states, ``The
maximum amount of time that you are required to make
income-determined payments, excluding any extensions
that you request.''.
(E) The term ``Income Threshold'' and the income
threshold for the income share agreement, followed by a
description that states, ``The minimum income you must
make in order to trigger a payment obligation under
this income share agreement. If your income is less
than or equal to this Income Threshold, you will not
owe any ISA payments for that period.''.
(5) A statement that during periods in which the ISA
recipient's income is not above the income threshold--
(A) the ISA recipient will not owe an ISA payment
for that period of time; and
(B) any such period of non-payment will not count
towards the ISA maximum number of payments but will
count toward the ISA duration.
(6) A statement that the obligations of the ISA recipient
under the income share agreement would be dischargeable in a
case under title 11, United States Code, in the same manner as
a loan that is not described in section 523(a)(8) of title 11,
United States Code.
(7) 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 duration.
(8) The definition of income to be used for purposes of
calculating the ISA recipient's obligation under the income
share agreement, subject to section 104(a).
(9) A comparison table that includes the following:
(A)(i) 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
amount.
(ii) The income levels used in the disclosure under
this paragraph shall include, at a minimum, the
obligations for the ISA recipient--
(I) with no income;
(II) with income at the income threshold;
and
(III) for various income scenarios,
including, at a minimum, calculations at annual
incomes of $40,000, $60,000, $80,000, $100,000,
$125,000, $150,000, $175,000, and $200,000.
(iii) The comparison table under this paragraph
shall include the following statement: ``This table
assumes you have the same Income over the entire term
of your income share agreement. It does not take into
account changes in Income. Your Income will likely
change over time.''.
(B) 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 (A).
(C) The amounts and number of payments, the total
of all payments, and the annual percentage rate
required to be paid under one or more comparable loans,
including, at a minimum--
(i) if elected by the Bureau, 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
marketplace;
(ii) for an educational ISA, a comparable
loan made under part D of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087a
et seq.) (including subsidized and unsubsidized
scenarios), if the individual would be eligible
for such a loan; and
(iii) for an income share agreement that is
not an educational ISA, a loan or loans that
the ISA provider believes, in good faith,
represents other alternative loan options
available for the ISA recipient.
(10) 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 than, equal to, or less than the ISA payments owed under
the income share agreement, including--
(A) a description of the process in which the ISA
recipient must participate in order for the ISA
provider to verify the ISA recipient's income; and
(B) 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 Service.
(11) A disclosure of the following items, to the extent
applicable:
(A) The amount that is or will be paid directly to
the ISA recipient.
(B) The amount that is or will be credited to the
ISA recipient's account to discharge obligations owed
to the ISA provider.
(C) Each amount that is or will be paid to third
persons by the ISA provider on the ISA recipient's
behalf, together with an identification of or reference
to the third person.
(D) The total amount of any charges that will be
paid by the ISA recipient before or at the time of the
consummation of the transaction, or have been withheld
from the proceeds of the income share agreement.
(12) The name and mailing address of the ISA provider.
(13) A payment schedule that--
(A) shows the date upon which the first ISA payment
is expected to be due or, if such date is not
reasonably knowable--
(i) an estimated date using the best
information available to the ISA provider; or
(ii) a statement of the events that will
trigger the first payment; and
(B) reflects each date thereafter during the ISA
duration that an ISA payment may be due.
(e) Additional Disclosure Elements.--The Director may, through a
rulemaking process--
(1) add additional items to be disclosed under subsection
(d) if consumer testing shows those elements would help
consumers better understand the nature of the ISA obligation or
better compare it with other products; and
(2) require that additional income scenarios be included in
the comparison table under paragraph (9)(A)(ii)(III), 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 agreement, except in no
case shall the number of scenarios exceed 20.
SEC. 303. ADDITIONAL REQUIREMENTS FOR EDUCATIONAL ISAS.
(a) Additional Disclosure Timing Rules for Educational ISAs.--The
following additional provisions apply to any income share agreement
that is an educational ISA:
(1) Application and solicitation.--
(A) 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 (b)(1) with any application or
solicitation for the educational ISA. For purposes of
this section, the term ``solicitation'' means an offer
of an income share agreement that does not require the
potential ISA recipient to complete an application.
(B) Telephone applications or solicitations.--In
the case of a telephone application or solicitation for
an educational ISA, the ISA provider shall provide the
disclosure by, at its option--
(i) disclosing orally the information
described in subsection (b)(1); or
(ii) mailing a copy of the disclosure
described in subsection (b)(1) not later than 3
business days after the potential ISA recipient
has applied for the educational ISA.
(C) Special rule.--For an income share agreement
that the ISA recipient may use for multiple purposes
including postsecondary educational expenses, the ISA
provider need not provide the disclosures required
under subsection (b)(1) in the application or
solicitation.
(2) Approval disclosures.--The ISA provider shall provide
the disclosures required by subsection (b)(2) before
consummation on, or with any notice of approval provided to the
applicant for, an educational ISA. If the ISA provider mails
notice of approval, the disclosures shall be mailed with the
notice. If the ISA provider communicates notice of approval by
telephone, the ISA provider shall mail the disclosures not
later than 3 business days after providing the notice of
approval. If the ISA provider communicates notice of approval
electronically, the ISA provider shall provide the disclosure,
at its option, either in electronic form in accordance with the
requirements of this title or by mailing the disclosure not
later than 3 business days after communicating the notice of
approval. If the ISA provider communicates approval in person,
the ISA provider shall provide the disclosures to the applicant
for an income share agreement at that time.
(3) Final disclosures.--The disclosures required by
subsection (b)(3) shall be provided after the ISA recipient
accepts the income share agreement.
(4) Receipt of mailed disclosures.--If a disclosure under
paragraph (1), (2), or (3) is mailed to the potential ISA
recipient or ISA recipient, as the case may be, the potential
ISA recipient or ISA recipient shall be deemed to have received
the disclosure 5 business days after the disclosure is mailed.
(5) Basis of disclosures and use of estimates in
educational isas.--
(A) Legal obligation.--Disclosures shall reflect
the terms of the legal obligation between the parties.
(B) Estimates.--If any information necessary for an
accurate disclosure is unknown to the ISA provider, the
ISA provider shall make the disclosure based on the
best information reasonably available at the time the
disclosure is provided, and shall state clearly that
the disclosure is an estimate.
(6) Effect of subsequent events.--
(A) Approval disclosures.--If a disclosure made
under paragraph (2) becomes inaccurate because of an
event that occurs after the ISA provider delivers the
required disclosures, the inaccuracy is not a violation
of this Act, although new disclosures may be required
in accordance with this title.
(B) Final disclosures.--If a disclosure under
paragraph (3) becomes inaccurate because of an event
that occurs after the creditor delivers the required
disclosures, the inaccuracy is not a violation of this
Act.
(b) Additional Disclosures for Educational ISAs.--In addition to
the other disclosure requirements of this title, an ISA provider of an
educational ISA shall provide the disclosures required under this
subsection as follows:
(1) Application and solicitation disclosure.--On or with a
solicitation or an application for an educational ISA, an ISA
provider shall disclose the following:
(A) ISA payment calculation method.--
(i) The ISA payment calculation method that
applies to the educational ISA and actually
offered by the ISA provider at the time of
application or solicitation. If the ISA payment
calculation method will depend, in part, on a
later determination of the ISA recipient's
creditworthiness or other factors, 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 factors, if applicable.
(ii) In the case of an ISA payment
calculation method that is based on a schedule
of percentages--
(I) an explanation of how the
schedule of percentages is calculated
using percentages of income based on
the ISA recipient's income; and
(II) the timing for recalculation
of the ISA recipient's payments under
the schedule of percentages.
(iii) 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--
(I) an explanation of how the
schedule of fixed amounts is calculated
using fixed amounts based on the ISA
recipient's income; and
(II) the timing for recalculation
of the ISA recipient's payments under
the schedule of fixed amounts.
(B) Fees and default or late payment costs.--
(i) An itemization of the fees or range of
fees required to obtain the educational ISA.
(ii) Any fees or other penalties based on
the ISA recipient's default or late payment.
(C) Payment terms.--
(i) The ISA duration, or range of ISA
durations, offered by the ISA provider.
(ii) A description of any payment deferral
options.
(D) Cost estimates.--Using the highest dollar
amount or percentage applicable under the ISA payment
calculation method described in subparagraph (A)(i) and
using an amount financed of $10,000, or $5,000 if the
ISA provider only offers income share agreements of
this type for less than $5,000, the loan comparison
based on these assumptions.
(E) Eligibility.--Any age or school enrollment
eligibility requirements relating to the ISA recipient.
(F) Alternative to income share agreements.--
(i) 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 1965 (20 U.S.C. 1070 et seq.)--
(I) a statement the ISA recipient
may qualify for Federal student
financial assistance through a program
under such title; and
(II) the interest rates for each
program of financial assistance
available under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070
et seq.) and information regarding
whether the rates for the loans
available under such title are fixed or
variable.
(ii) If applicable to the student's
circumstances, a statement that the ISA
recipient may obtain additional information
concerning Federal student financial assistance
from the institution of higher education that
the student attends, or at the website of the
Department of Education, including an
appropriate website address for the Department.
(iii) A statement that an institution of
higher education may have school-specific
education loan benefits and terms not detailed
on the disclosure form.
(G) Rights of the consumer.--A statement that if
the application for the educational ISA is approved by
the ISA provider, the terms of the educational ISA will
be available and will not change for 30 days except as
a result of adjustments to the ISA payment calculation
method, ISA duration, or ISA maximum number of payments
and other changes permitted by law.
(H) Self-certification information.--A statement
that, before the educational ISA may be consummated,
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
attends.
(I) Overall educational finance obligation
notice.--The following statement: ``IMPORTANT NOTICE
REQUIRED BY LAW: Students are cautioned to consider
carefully entering into this Income Share Agreement if
their total future payment commitment, including any
other forms of education finance, may exceed 20 percent
of their expected future income. Your total future
obligation may exceed this percentage if you have
received additional education financing, including
other income share agreements, Department of Education
Direct or FFEL Loans, or private education loans.''.
(2) Disclosures upon approval of an isa.--Upon approval of
an educational ISA by an ISA provider, the ISA provider shall
disclose the information required under section 302(d) and the
following information:
(A) ISA payment calculation method.--
(i) The ISA payment calculation method that
applies to the educational ISA.
(ii) In the case of an ISA payment
calculation method that is based on a schedule
of percentages--
(I) an explanation of how the
schedule of percentages is calculated
using percentages of income based on
the ISA recipient's income; and
(II) the timing for recalculation
of the ISA recipient's payments under
the schedule of percentages.
(iii) 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--
(I) an explanation of how the
schedule of fixed amounts is calculated
using fixed amounts based on the ISA
recipient's income; and
(II) the timing for recalculation
of the ISA recipient's payments under
the schedule of fixed amounts.
(B) Fees and default or late payment costs.--
(i) An itemization of the fees or range of
fees required to obtain the educational ISA.
(ii) Any fees or other penalties based on
the ISA recipient's defaults or late payments.
(C) Payment terms.--
(i) The ISA duration, or range of ISA
durations, offered by the ISA provider.
(ii) A description of any payment deferral
options.
(D) Cost estimates.--The following disclosure shall
be made using the ISA payment calculation method, ISA
duration, and ISA maximum number of payments for which
the ISA recipient has been approved:
(i) The loan comparison based on these
assumptions.
(ii) A description of the payment deferral
option chosen by the ISA recipient, if
applicable, and any other payment deferral
options that the ISA recipient may elect at a
later time.
(iii) Any payments required while the ISA
recipient is enrolled at a covered educational
institution, based on the deferral option
chosen by the ISA recipient.
(E) Alternatives to private education income share
agreements, 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
1965 (20 U.S.C. 1070 et seq.), the following:
(i) 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 1965 (20 U.S.C.
1070 et seq.).
(ii) The interest rates for each program of
financial assistance available under title IV
of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.) and information regarding whether
the rates for the loans available under such
title are fixed or variable.
(iii) A statement that the ISA recipient
may obtain additional information concerning
Federal student financial assistance from the
institution of higher education that the
student attends, or at the website of the
Department of Education, including an
appropriate website address for the Department.
(F) Rights of the isa recipient.--
(i) 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 (d)(1).
(ii) The specific date on which the
acceptance period expires, based on the date
upon which the ISA recipient receives the
disclosures required under this paragraph for
the income share agreement.
(iii) A specification of the method or
methods by which the ISA recipient may
communicate acceptance.
(iv) A statement that, except for changes
to the ISA payment calculation method and other
changes permitted by law, the rates and terms
of the income share agreement may not be
changed by the ISA provider during the period
described in clause (i).
(G) Overall educational finance obligation
notice.--The following statement: ``IMPORTANT NOTICE
REQUIRED BY LAW: Students are cautioned to consider
carefully entering into this Income Share Agreement if
their total future payment commitment, including any
other forms of education finance, may exceed 20 percent
of their expected future income. Your total future
obligation may exceed this percentage if you have
received additional education financing, including
other income share agreements, Department of Education
Direct or FFEL Loans, or private education loans.''.
(3) Final disclosures.--After the ISA recipient has
accepted the income share agreement in accordance with
subsection (d)(1), the ISA provider shall disclose to the ISA
recipient the information required by this section and the
following information:
(A) ISA payment calculation method.--
(i) The ISA payment calculation method
applicable to the income share agreement.
(ii) In the case of an ISA payment
calculation method that is based on a schedule
of percentages--
(I) an explanation of how the
schedule of percentages is calculated
using percentages of income based on
the ISA recipient's income; and
(II) the timing for recalculation
of the ISA recipient's payments under
the schedule of percentages.
(iii) 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--
(I) an explanation of how the
schedule of fixed amounts is calculated
using fixed amounts based on the ISA
recipient's income; and
(II) the timing for recalculation
of the ISA recipient's payments under
the schedule of fixed amounts.
(B) Fees and default or late payment costs.--
(i) An itemization of the fees or range of
fees required to obtain the educational ISA.
(ii) Any fees or other penalties based on
the ISA recipient's defaults or late payments.
(C) Payment terms.--
(i) The ISA duration or range of ISA
durations offered by the ISA provider.
(ii) A description of any payment deferral
options.
(D) Cost estimates.--The following disclosure shall
be made using the ISA payment calculation method, ISA
duration, and ISA maximum number of payments for which
the ISA recipient has been approved:
(i) The loan comparison based on these
assumptions.
(ii) A description of the payment deferral
option chosen by the ISA recipient, if
applicable, and any other payment deferral
options that the ISA recipient may elect at a
later time.
(iii) Any payments required while the ISA
recipient is enrolled at a covered educational
institution, based on the deferral option
chosen by the ISA recipient.
(E) Cancellation rights.--
(i) A statement that--
(I) the ISA recipient has the right
to cancel the income share agreement,
without penalty, at any time before the
cancellation period under subsection
(e) expires; and
(II) the income share agreement
proceeds will not be disbursed until
after such cancellation period expires.
(ii) The specific date on which the
cancellation period expires and a statement
that the ISA recipient may cancel by that date.
(iii) A statement specifying--
(I) all methods by which the ISA
recipient may cancel; and
(II) if the ISA provider permits
cancellation by mail, 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 (ii).
(iv) The disclosures required by this
subparagraph shall be made more conspicuous
than any other disclosure required under this
section, except for the ISA payment calculation
method, ISA duration, ISA maximum number of
payments, amount financed, income threshold,
and the ISA provider's identity, which shall be
disclosed in accordance with the requirements
of section 302(d).
(F) Overall educational finance obligation
notice.--The following statement: ``IMPORTANT NOTICE
REQUIRED BY LAW: Students are cautioned to consider
carefully entering into this Income Share Agreement if
their total future payment commitment, including any
other forms of education finance, may exceed 20 percent
of their expected future income. Your total future
obligation may exceed this percentage if you have
received additional education financing, including
other income share agreements, Department of Education
Direct or FFEL Loans, or private education loans.''.
(c) Limitation on Educational ISAs.--
(1) Co-branding prohibited.--
(A) In general.--Except as provided in subparagraph
(B) and paragraph (2), an ISA provider, other than the
covered educational institution itself, shall not use
the name, emblem, mascot, or logo of a covered
educational institution, or other words, pictures, or
symbols identified with a covered educational
institution, in the marketing of educational ISAs in a
way that implies that the covered education institution
endorses the ISA provider's income share agreements.
(B) 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 disclosure, equally prominent and
closely proximate to the reference to the covered
educational institution, 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 institution.
(2) 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 ISAs, and such
arrangement is not prohibited by other applicable law or
regulation, paragraph (1)(A) shall not apply as long as the
educational ISA marketing includes a clear and conspicuous
disclosure, equally prominent and closely proximate to the
reference to the covered educational institution, that the ISA
provider's income share agreements are not offered or made by
the covered educational institution, but are made by the ISA
provider.
(d) Educational ISA Recipient's Right To Accept.--
(1) Acceptance period.--The ISA recipient has the right to
accept the terms of an educational ISA at any time not later
than 30 calendar days following the date on which the ISA
recipient receives the disclosures required under subsection
(b)(2).
(2) Limitations on changes.--Except for changes permitted
under paragraph (3), the terms of the educational ISA that are
required to be disclosed under paragraphs (2) and (3) of
subsection (b) may not be changed by the ISA provider prior to
the earlier of--
(A) the date of disbursement of the income share
agreement; or
(B) the expiration of the 30-day period described
in paragraph (1), if the ISA recipient has not accepted
the income share agreement before within the period.
(3) Exceptions not requiring re-disclosure.--
(A) In general.--Notwithstanding paragraph (2),
nothing in this section shall prevent an ISA provider
of an educational ISA from--
(i) 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 application;
(ii) changing the ISA payment calculation
method and terms if the change will
unequivocally benefit the ISA recipient; or
(iii) reducing the amount funded based upon
a certification or other information received
from the covered educational institution, or
from the ISA recipient, indicating that the
student's cost of attendance has decreased or
the ISA recipient's other financial aid has
increased, except that, in such case, the ISA
provider may make corresponding changes to the
terms of the ISA payment calculation method,
ISA duration, 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 financed.
(B) No new disclosures required.--If the ISA
provider changes the ISA payment calculation method or
terms of the income share agreement under this
paragraph, the ISA provider shall not be required to--
(i) provide the disclosures required under
subsection (b)(2) for the new income share
agreement terms; or
(ii) provide an additional 30-day period to
the ISA recipient to accept the new terms of
the income share agreement.
(4) Exceptions requiring re-disclosure.--
(A) In general.--Notwithstanding paragraphs (2) and
(3), nothing in this section prevents an ISA provider,
at its option, from changing the ISA payment
calculation method or terms of the income share
agreement to accommodate a specific request by the ISA
recipient, such as a request for a different repayment
option.
(B) Additional disclosures required.--If the ISA
provider changes the rate or terms of the income share
agreement under subparagraph (A), the ISA provider--
(i) shall provide the disclosures required
under subsection (b)(2) and shall provide the
ISA recipient the 30-day period to accept the
income share agreement, as required under
paragraph (1); and
(ii) shall not make further changes to the
income share agreement and terms of the loan,
except as specified in paragraph (3)(B).
(C) No further withdrawals or changes.--Except as
permitted under paragraph (3)(B), 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 (A), 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 paragraph.
(e) Educational ISA Recipient's Right To Cancel.--The ISA recipient
may cancel an educational ISA, without penalty, until midnight of the
third business day following the date on which the ISA recipient
receives the disclosures required by subsection (b)(3). No funds may be
disbursed for an educational ISA until the 3-business-day period has
expired, absent exceptional circumstances necessitating disbursement
based on a request from the covered educational institution. In such a
case, the covered educational institution shall promptly, upon
cancellation by the student, refund the amounts to the ISA provider.
(f) 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 education, the ISA
provider shall obtain, from the ISA recipient or the institution of
higher education, the educational ISA certification form developed by
the Secretary under section 155 of the Higher Education Act of 1965 (20
U.S.C. 1019d), signed by the ISA recipient, in written or electronic
form, before consummating the educational ISA.
(g) Provision of Information by Preferred ISA Provider.--
(1) In general.--An ISA provider that has a preferred ISA
financing arrangement with a covered educational institution
shall, each year in accordance with paragraph (2), provide to
the covered educational institution the information required
under subsection (b)(1) for each type of educational ISA that
the ISA provider plans to offer to ISA recipients for students
attending the covered educational institution, for the period
beginning July 1 of the year in which the information is
provided and ending June 30 of the following year.
(2) Timing.--For each year of a preferred ISA provider
financing arrangement, the ISA provider shall provide the
information required under paragraph (1) by the later of--
(A) the first day of April; or
(B) the date that is 30 days after entering into,
or learning the ISA provider is a party to, a preferred
ISA provider arrangement.
SEC. 304. ADVERTISING OF INCOME SHARE AGREEMENTS.
(a) 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 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.).
(b) Amendments to the Truth in Lending Act.--The Truth in Lending
Act (15 U.S.C. 1601 et seq.) is amended--
(1) in section 103(f) (15 U.S.C. 1602(f))--
(A) by striking ``means the'' and inserting
``means--
``(1) the'';
(B) in paragraph (1), as so designated, by striking
the period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(2) for purposes of chapter 3, shall include an income
share agreement, as defined in section 2 of the ISA Student
Protection Act of 2023.'';
(2) in section 142 (15 U.S.C. 1662)--
(A) in the matter preceding paragraph (1), by
striking ``state'' and inserting ``state--'';
(B) in paragraph (1), by striking the period at the
end and inserting a semicolon;
(C) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(3) with respect to an income share agreement (as defined
in section 2 of the ISA Student Protection Act of 2023), that a
specific ISA payment calculation method, ISA duration, ISA
maximum number of payments, or income threshold (as those terms
are defined in such section 2) can be arranged unless the ISA
provider (as defined in such section 2) usually and customarily
arranges income share agreements pursuant to the terms so
advertised.''; and
(3) in section 144 (15 U.S.C. 1664), by adding at the end
the following:
``(f) Income Share Agreements.--
``(1) Definitions.--In this subsection, the terms `income
share agreement', `income threshold', `ISA duration', `ISA
maximum number of payments', and `ISA payment calculation
method' have the meanings given those terms in section 2 of the
ISA Student Protection Act of 2023.
``(2) Application.--This subsection shall apply to any
advertisement to aid, promote, or assist directly or indirectly
any income share agreement subject to the provisions of this
chapter.
``(3) Disclosure of key terms.--If any advertisement to
which this section applies states the ISA payment calculation
method, ISA duration, ISA maximum number of payments, income
threshold, or amounts of payments under an income share
agreement, the advertisement shall include the following:
``(A) The ISA payment calculation method.
``(B) The ISA duration.
``(C) The ISA maximum number of payments.
``(D) The income threshold.''.
TITLE IV--OTHER CLARIFICATIONS TO SUPPORT ISA PROGRAMS
SEC. 401. TREATMENT UNDER SECURITIES LAWS.
(a) Income Share Agreements Not Treated as Securities.--
(1) In general.--An income share agreement shall not be
treated as a security for purposes of the securities laws (as
defined in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a))), any similar State law, or any State law
that directly or indirectly prohibits, limits, or imposes
conditions, based on the merits of an offering or issuer of
securities, upon the offer or sale of any security.
(2) Rule of construction.--Nothing in paragraph (1) may be
construed to prevent an instrument that is collateralized by,
or serviced by the cash flows of, an income share agreement
from being treated as a security for purposes of any law
described in that paragraph.
(b) ISA Providers Making Income Share Agreements Excluded From
Investment Company Treatment.--Section 3(c) of the Investment Company
Act of 1940 (15 U.S.C. 80a-3(c)) is amended--
(1) in paragraph (4), by inserting ``income share
agreements (as that term is defined in section 2 of the ISA
Student Protection Act of 2023),'' after ``industrial
banking,''; and
(2) in paragraph (5)--
(A) in subparagraph (A), by inserting ``, including
purchasing or otherwise acquiring income share
agreements (as that term is defined in section 2 of the
ISA Student Protection Act of 2023)'' after
``services''; and
(B) in subparagraph (B), by inserting ``, including
making income share agreements (as defined in
subparagraph (A))'' after ``services''.
SEC. 402. TREATMENT UNDER BANKRUPTCY LAWS.
Section 523(a)(8) of title 11, United States Code, is amended, in
the matter preceding subparagraph (A), by striking ``for--'' and
inserting ``for, other than funds provided as part of an educational
ISA (as defined in section 2 of the ISA Student Protection Act of
2023)--''.
SEC. 403. CONSENT TO CONTINUING RELEASE OF TAXPAYER INFORMATION UNDER
EDUCATIONAL ISAS AND INCOME SHARE AGREEMENTS.
By not later than 180 days after the date of enactment of this Act,
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 (or the provider's
successor in interest) under an educational ISA or other income share
agreement, but only for periods relevant to, and only to the extent the
Secretary determines is necessary and appropriate in carrying out the
terms of, such educational ISA or income share agreement.
SEC. 404. INTERPLAY WITH THE HIGHER EDUCATION ACT OF 1965.
(a) Title IV Definitions.--
(1) In general.--Section 480 of the Higher Education Act of
1965 (20 U.S.C. 1087vv), as amended by section 702 of the FAFSA
Simplification Act (title VII of division FF of Public Law 116-
260; 134 Stat. 3191), is amended--
(A) in subsection (e)--
(i) in paragraph (2), by striking ``and''
after the semicolon;
(ii) in paragraph (3), by striking the
period and inserting ``; and''; and
(iii) by adding at the end the following:
``(4) any amount provided to the applicant, or on whose
behalf funds are disbursed, under an income share agreement, as
defined in section 2 of the ISA Student Protection Act of
2023.''; and
(B) in subsection (f)(1), by inserting ``amounts
provided to an individual, or on whose behalf the funds
are disbursed, under an income share agreement, as
defined in section 2 of the ISA Student Protection Act
of 2023,'' after ``income producing property,''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect as if included in section 702 of the FAFSA
Simplification Act (title VII of division FF of Public Law 116-
260; 134 Stat. 3191) and in accordance with section 701(b) of
such Act.
(b) Program Participation Agreements.--Section 487(d)(1)(D) of the
Higher Education Act of 1965 (20 U.S.C. 1094(d)(1)(D)) is amended--
(1) in clause (ii), by striking ``and'' after the
semicolon;
(2) in clause (iii), by inserting ``and'' after the
semicolon; and
(3) by adding at the end the following:
``(iv) in the case of educational income
share agreements (as such term is defined in
section 2 of the ISA Student Protection Act of
2023) made by a proprietary institution of
higher education, only the amount of ISA
payments (as defined in such section) received
during the applicable institutional fiscal
year, 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
agreement;''.
(c) Preferred Lender Arrangement Definitions.--Section 151 of the
Higher Education Act of 1965 (20 U.S.C. 1019) is amended--
(1) by redesignating paragraphs (3), (4), (5), and (6)
through (9) as paragraphs (4), (5), (6), and (9) through (12),
respectively;
(2) by inserting after paragraph (2) the following:
``(3) Educational isa.--The term `educational ISA' has the
meaning given the term in section 2 of the ISA Student
Protection Act of 2023.'';
(3) in paragraph (6), as redesignated by paragraph (1)--
(A) in subparagraph (A)(ii), by inserting ``or
educational ISAs'' after ``loans'';
(B) in subparagraph (B), by striking ``and'' after
the semicolon;
(C) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end of the following:
``(D) notwithstanding subparagraphs (A) and (B),
does not include any ISA provider with respect to any
educational ISA secured, made, or extended by such ISA
provider.'';
(4) by inserting after paragraph (6), as redesignated by
subparagraph (A), the following:
``(7) ISA provider.--The term `ISA provider' has the
meaning given the term in section 2 of the ISA Student
Protection Act of 2023.
``(8) ISA recipient.--The term `ISA recipient' has the
meaning given the term in section 2 of the ISA Student
Protection Act of 2023.''; and
(5) in paragraph (11)(A), as redesignated by paragraph
(1)--
(A) in the matter preceding clause (i), by
inserting ``or ISA provider'' after ``lender'';
(B) in clause (i), by inserting ``or an ISA
provider provides or otherwise issues educational
ISAs'' after ``loans''; and
(C) in clause (ii), by inserting ``or the
educational ISAs of the ISA provider'' after
``lender''.
(d) Responsibilities of Covered Institutions and ISA Providers
Regarding Preferred Lender Arrangements.--Section 152 of the Higher
Education Act of 1965 (20 U.S.C. 1019a) is amended--
(1) in the section heading, by striking ``and lenders'' and
inserting ``lenders, and isa providers'';
(2) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) in clause (i)--
(aa) in the matter
preceding subclause (I), by
inserting ``or educational
ISAs'' after ``loans'';
(bb) in subclause (II)--
(AA) by striking
``section 151(3)(A)''
and inserting ``section
151(4)(A)''; and
(BB) by striking
``and'' at the end;
(cc) by redesignating
subclause (III) as subclause
(IV); and
(dd) by inserting after
subclause (II) the following:
``(III) the information required to
be disclosed pursuant to section
153(a)(2)(A)(i), 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
students; and''; and
(II) in clause (ii)--
(aa) in the matter
preceding subclause (I)--
(AA) by striking
``subparagraph (C)''
and inserting
``subparagraph (D)'';
and
(BB) by inserting
``or educational ISAs''
after ``loans'';
(bb) in subclause (I), by
striking ``and'' after the
semicolon; and
(cc) by adding at the end
the following:
``(III) in the case of a covered
institution, the information described
in section 153(c) 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
students; and
``(IV) in the case of an
institution-affiliated organization of
a covered institution, the information
in section 303(b)(1) of the ISA Student
Protection Act of 2023, 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
students.'';
(ii) by redesignating subparagraph (C) as
subparagraph (D); and
(iii) by inserting after subparagraph (B)
the following:
``(C) Educational isa disclosures.--A covered
institution, or an institution-affiliated organization
of such covered institution, that provides information
regarding an educational ISA from an ISA provider to a
prospective ISA recipient shall--
``(i) provide the prospective ISA recipient
with the information described in section
303(b)(1) of the ISA Student Protection Act of
2023 for such educational ISA;
``(ii) inform the perspective ISA recipient
that--
``(I) the prospective ISA recipient
may qualify for loans or other
assistance under title IV; and
``(II) the terms and conditions of
the loans made, insured, or guaranteed
under title IV may be more favorable
than the provisions of educational
ISAs; and
``(iii) ensure that information regarding
educational ISAs is presented in such a manner
as to be distinct from information regarding
loans that are made, insured, or guaranteed
under title IV.'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Use of institution name.--A covered institution, or
an institution-affiliated organization of such covered
institution, that enters into a preferred lender arrangement
with a lender regarding private education loans or an ISA
provider regarding educational ISAs shall not agree to the
lender's or ISA provider's use of the name, emblem, mascot, or
logo of such institution or organization, or other words,
pictures, or symbols readily identified with such institution
or organization, in the marketing of private education loans or
educational ISAs 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 provider.''; and
(C) by adding at the end the following:
``(4) Use of isa provider name.--A covered institution, or
an institution-affiliated organization of such covered
institution, that enters into a preferred lender arrangement
with an ISA provider regarding educational ISAs shall ensure
that the name of the ISA provider is displayed in all
information and documentation related to such educational
ISAs.''; and
(3) by adding at the end the following:
``(c) ISA Provider Responsibilities.--For each of an ISA provider's
educational ISAs, the ISA provider shall comply with the disclosure
requirements of sections 302 and 303 of the ISA Student Protection Act
of 2023.''.
(e) Disclosures for ISA Providers Participating in Preferred Lender
Arrangements.--Section 153 of the Higher Education Act of 1965 (20
U.S.C. 1019b) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``section 151(3)(A)'' and inserting ``section
151(4)(A)''; and
(ii) by adding at the end the following:
``(C) Additional information for educational
isas.--
``(i) In general.--By not later than 180
days after the date of enactment of the ISA
Student Protection Act of 2023, the Secretary,
in coordination with the Bureau of Consumer
Financial Protection, shall determine the
minimum information that ISA providers, covered
institutions, and institution-affiliated
organizations of such covered institutions
participating in preferred lender arrangements
shall make available regarding educational
ISAs.
``(ii) Consultation and content of minimum
disclosures.--In carrying out clause (i), the
Secretary shall--
``(I) consult with students, the
families of such students,
representatives of covered institutions
(including financial aid
administrators, admission officers, and
business officers), representatives of
institution-affiliated organizations,
secondary school guidance counselors,
and ISA providers;
``(II) include, in the minimum
information under clause (i) that is
required to be made available, the
information required to be disclosed
under section 303 of the ISA Student
Protection Act of 2023; and
``(III) consider the merits of
requiring each covered institution, and
each institution-affiliated
organization of such covered
institution, 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 arrangement:
``(aa)(AA) The ISA payment
calculation method, the income
threshold, the ISA maximum
number of payments (or a range
of the ISA maximum number of
payments), the ISA payment
window (or a range of the ISA
payment windows), and the terms
and conditions of the
educational ISA for the next
award year.
``(BB) In this subclause,
the terms `income threshold',
`ISA maximum number of
payments', `ISA payment
calculation method', and `ISA
payment window' have the
meanings given the terms in
section 2 of the ISA Student
Protection Act of 2023.
``(bb) An itemization of
the fees or range of fees
required to obtain the
educational ISA.
``(cc) Any fees or other
penalties based on the ISA
recipient's defaults or late
payments.
``(dd) The annual or
aggregate maximum financed
amounts.
``(ee) The average financed
amounts provided by the ISA
provider to students who--
``(AA) graduated
from such institution
in the preceding year
with certificates,
undergraduate degrees,
graduate degrees, and
professional degrees,
as applicable; and
``(BB) obtained
educational ISAs of
such type from the ISA
provider for the
preceding year.
``(ff) The consequences for
the ISA recipient for
defaulting on an educational
ISA.
``(gg) Contact information
for the ISA provider.
``(hh) Other information
suggested by the persons and
entities with whom the
Secretary has consulted under
subclause (I).'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i), by striking
``section 151(3)(A)'' and inserting
``section 151(4)(A), or to prospective
ISA recipients and the families of such
ISA recipients regarding educational
ISAs,''; and
(II) in clause (ii), by striking
``the model disclosure form'' and
inserting ``a model disclosure form'';
(ii) in subparagraph (B)--
(I) in the matter preceding clause
(i)--
(aa) by striking ``a model
disclosure form'' and inserting
``model disclosure forms''; and
(bb) by striking ``and
preferred lenders'' and
inserting ``preferred lenders,
and ISA providers'';
(II) in clause (i), by inserting
``ISA providers,'' after
``servicers,''; and
(III) in clause (ii)--
(aa) by striking ``format
to the form'' and inserting the
following: ``format to--
``(aa) with respect to
education loans, the form'';
(bb) by striking ``section
151(3)(A)'' and inserting
``section 151(4)(A)''; and
(cc) by adding at the end
the following:
``(bb) with respect to
educational ISAs, the form
developed by the Bureau of
Consumer Financial Protection
under section 301(4) of the ISA
Student Protection Act of 2023
in order to permit students and
the families of students to
easily compare educational
ISAs; and''; and
(iii) in subparagraph (C), by striking
``such model disclosure form'' and inserting
``the model disclosure forms described in
subparagraph (B)'';
(2) in subsection (b), by striking ``section 151(3)(A)''
each place the term appears and inserting ``section
151(4)(A)'';
(3) by redesignating subsection (c) as subsection (d);
(4) by inserting after subsection (b) the following:
``(c) Duties of ISA Providers.--Each ISA provider that has a
preferred lender arrangement with respect to educational ISAs with a
covered institution, or an institution-affiliated organization of such
covered institution, shall annually, by a date determined by the
Secretary, provide to such covered institution or such institution-
affiliated organization, and to the Secretary, the information the
Secretary requires pursuant to subsection (a)(2)(A)(i) for the
educational ISAs that the ISA provider plans to offer pursuant to such
preferred lender arrangement to students attending such covered
institution, or to the families of such students, for the next award
year.''; and
(5) in subsection (d), as redesignated by paragraph (3)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) in clause (i), by striking
``section 151(3)(A)'' and inserting
``section 151(4)(A) or educational
ISA''; and
(II) by adding at the end the
following:
``(iii)(I) in the case of a covered
institution, the information described in
subsection (c), 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
students; and
``(II) in the case of an institution-
affiliated organization of a covered
institution, the information described in
section 303(b)(1) of the ISA Student Protection
Act of 2023, 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
students.''; and
(ii) in subparagraph (B)--
(I) by inserting ``or ISA
provider'' after ``lender''; and
(II) by inserting ``or an
educational ISA'' after ``loan''; and
(B) in paragraph (2)(A)--
(i) in the matter preceding clause (i), by
inserting ``or ISA provider'' after ``each
lender'';
(ii) in clause (i), by striking ``clauses
(i) and (ii)'' and inserting ``clauses (i)
through (iii), as applicable''; and
(iii) in clause (ii)--
(I) by inserting ``or ISA
provider'' after ``the lender''; and
(II) by inserting ``or educational
ISA'' after ``loan''.
(f) Self-Certification Form for Educational ISAs.--Section 155 of
the Higher Education Act of 1965 (20 U.S.C. 1019d) is amended--
(1) by striking the section heading and inserting the
following: ``self-certification forms for private education
loans or educational isas.'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``the self-certification
form'' and inserting ``a self-certification
form'';
(ii) by inserting ``and, in consultation
with the Director of the Bureau of Consumer
Financial Protection, a self-certification form
for educational ISAs that shall be used to
satisfy the requirements of section 303(f) of
the ISA Student Protection Act of 2023'' after
``Act''; and
(iii) by striking ``Such form'' and
inserting ``Each form''; and
(B) in paragraph (3)--
(i) in subparagraph (A), by inserting ``or
educational ISA, as applicable'' after
``loan''; and
(ii) in subparagraph (C), by inserting ``or
educational ISA, as applicable'' after
``loan''; and
(3) in subsection (b), by striking ``the form'' and
inserting ``a form''.
(g) Conforming Amendments.--Section 154 of the Higher Education Act
of 1965 (20 U.S.C. 1019c) is amended--
(1) in subsection (a)--
(A) by inserting ``for education loans'' after
``the model disclosure form''; and
(B) by striking ``section 151(3)(A)'' and inserting
``section 151(4)(A)''; and
(2) in subsection (b)(2), by inserting ``for education
loans'' after ``model disclosure form''.
TITLE V--APPLYING EXISTING CONSUMER PROTECTIONS TO INCOME SHARE
AGREEMENTS
SEC. 501. EQUAL ACCESS TO INCOME SHARE AGREEMENTS.
(a) Activities Constituting Discrimination.--It shall be unlawful
for any ISA provider to discriminate against any applicant, with
respect to any aspect of an income share agreement--
(1) on the basis of race, color, religion, national origin,
sex or marital status, or age (provided the applicant has the
capacity to contract);
(2) because all or part of the applicant's income derives
from any public assistance program (except for those excluded
from the definition of income established by the income share
agreement); or
(3) because the applicant has in good faith exercised any
right under this Act.
(b) Activities Not Constituting Discrimination.--It shall not
constitute discrimination for purpose of subsection (a) for an ISA
provider--
(1) to make an inquiry of the applicant's age or of whether
the applicant's income derives from any public assistance
program, if such inquiry is for the purpose of determining the
amount and probable continuance of income levels, credit
history, or other pertinent element of creditworthiness as
provided in regulations of the Bureau;
(2) to use any empirically derived credit system that
considers age if that system is demonstrably and statistically
sound in accordance with regulations of the Bureau, except that
in the operation of such a system, the age of an elderly
applicant may not be assigned a negative factor or value;
(3) to make an inquiry of, or to consider the age of, 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
applicant; or
(4) 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 agreement, 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 applicants,
except that in accordance with any regulations of the Bureau in
the operation of such a system to project an applicant's
expected future income, an ISA provider--
(A) may not consider an applicant's status as a
member or potential member of any of the classes
described in subsection (a);
(B) may consider an applicant's current employment
status, current debt and other financial obligations,
or current and past income (as of the date of
application); or
(C) in the case of educational ISAs, 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 program.
(c) Additional Activities Not Constituting Discrimination.--It
shall not be a violation of subsection (a) for an ISA provider to
refuse to extend an income share agreement--
(1) that is offered pursuant to--
(A) any financial assistance program expressly
authorized by law for an economically disadvantaged
class of persons;
(B) any financial assistance program administered
by a nonprofit organization for its members or an
economically disadvantaged class of persons; or
(C) any special purpose financial assistance
program that--
(i) is carried out by a for-profit
organization to meet special social needs; and
(ii) meets standards prescribed in
regulations by the Bureau; or
(2) if the refusal is required by, or made pursuant to, a
program described in paragraph (1).
(d) Reason for Adverse Action; Procedure Applicable.--
(1) In general.--Not later than 30 days (or such longer
reasonable time as specified in regulations of the Bureau for
any class of income share agreement transaction) after the date
on which an ISA provider receives a completed application for
an income share agreement, the ISA provider shall notify the
applicant of--
(A) the action taken by the ISA provider with
respect to the application;
(B) in the case of an adverse action, a clear and
accurate disclosure of the applicant's right to a
written statement of reasons in accordance with
paragraph (2) within 60 days after receiving the notice
under this paragraph; and
(C) the identity of the person or office from which
the statement of reasons described in paragraph (2) may
be obtained.
(2) Statement of reasons.--
(A) 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 action, if the
request is made by the applicant not later than 60 days
after receiving the notice of an adverse action under
paragraph (1).
(B) Timing.--An ISA provider shall provide an
applicant with the statement of reasons under
subparagraph (A) by the date that is not more than 30
days after the date of the consumer's request.
(C) Oral statement.--Notwithstanding subparagraph
(A), 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 writing,
upon written request by the applicant.
(D) 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
applicant, the statement under this paragraph may be
made directly by the ISA provider, or indirectly
through the third party, if the identity of the ISA
provider is disclosed.
(E) 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 150 applications during the calendar
year preceding the calendar year in which the
applicable adverse action is taken, as determined under
regulations of the Bureau.
(e) Regulations.--
(1) In general.--
(A) Issuance of regulations.--The Bureau shall
prescribe regulations to carry out the purposes of this
section.
(B) Contents.--The regulations prescribed under
subparagraph (A) may contain such classifications,
differentiation, or other provisions, and may provide
for such adjustments for any class of transactions, as
in the judgment of the Bureau are necessary or proper
to effectuate the purposes of this section, to prevent
circumvention or evasion of this section, or to
facilitate or substantiate compliance with this
section.
(2) Consistent with equal credit opportunity act.--In
prescribing regulations under paragraph (1), the Bureau shall
be guided by the Equal Credit Opportunity Act (15 U.S.C. 1691
et seq.) and part 1002 of title 12, Code of Federal
Regulations, or any successor regulations.
(3) Exempt transactions.--
(A) In general.--Subject to subparagraph (B), the
regulations prescribed under paragraph (1) may exempt
from the provisions of this section any class of
transactions that is not primarily for personal,
family, or household purposes, or any business or
commercial income share agreement or investment
contract made available by a financial institution,
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 section, or
of any provision of this section, to the income share
agreement would not contribute substantially to
effectuating the purposes of this section.
(B) Limitation.--An exemption granted under
subparagraph (A) shall be--
(i) for not longer than 5 years; and
(ii) extended only if the Bureau makes a
subsequent determination, in the manner
described by that subparagraph, that the
exemption remains appropriate.
(4) Maintenance of records.--Pursuant to the regulations
prescribed under paragraph (1), 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 section, except that in no
event shall those records or data be maintained for a period of
less than 1 year.
(5) Deference.--Notwithstanding any power granted to any
Federal agency under this section, 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 apply, enforce, interpret,
or administer the provisions of this section.
(f) Enforcement.--The administrative enforcement of this section
shall be consistent with section 704 of the Equal Credit Opportunity
Act (15 U.S.C. 1691c) and the regulations implementing such section
704.
(g) Self-Testing and Self-Correction.--The incentives for self-
testing and self-correction under section 704A of the Equal Credit
Opportunity Act (15 U.S.C. 1691c-1), and the regulations implementing
such section 704A, shall apply to ISA providers offering income share
agreements.
(h) Applicability of Other Laws.--Section 705 of the Equal Credit
Opportunity Act (15 U.S.C. 1691d), and the regulations implementing
such section 705, shall apply to ISA providers offering income share
agreements in the same manner in which those provisions apply to
creditors offering loan products.
(i) Civil Liability.--Section 706 of the Equal Credit Opportunity
Act (15 U.S.C. 1691e), and the regulations implementing such section
706, shall apply to ISA providers offering income share agreements.
(j) Reports by Bureau and Attorney General.--
(1) In general.--Each year, the Bureau and the Attorney
General shall, respectively, submit to Congress reports
concerning the administration of the functions of the Bureau
and the Attorney General, respectively, under this section,
including such recommendations as the Bureau and the Attorney
General, respectively, determine necessary or appropriate.
(2) Additional information.--Each report of the Bureau
submitted under paragraph (1) 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 (f).
SEC. 502. PROHIBITION ON REQUIRING PREAUTHORIZED ELECTRONIC FUND
TRANSFERS UNDER THE ELECTRONIC FUND TRANSFER ACT.
Section 913(1) of the Electronic Fund Transfer Act (15 U.S.C.
1693k(1)) is amended by inserting ``, or the entering into an
educational ISA or an income share agreement (as those terms are
defined in section 2 of the ISA Student Protection Act of 2023) with a
consumer'' after ``a consumer''.
SEC. 503. TREATMENT UNDER THE FAIR CREDIT REPORTING ACT.
(a) In General.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is amended by adding at the end the following:
``(i) Income Share Agreement Information.--With respect to an
income share agreement (as that term is defined in section 2 of the ISA
Student Protection Act of 2023), a consumer report made by a consumer
reporting agency--
``(1) may include a description of the contract terms of
the income share agreement and, subject to subsection (a),
information with respect to amounts that are owed under the
income share agreement; and
``(2) may not include any speculation about future amounts
that may be owed under the income share agreement, including
the reporting of any payment caps or early termination
amounts.''.
(b) Regulations.--The Bureau shall promulgate regulations with
respect to the manner in which ISA providers may furnish, and consumer
reporting agencies may report, information regarding income share
agreements.
SEC. 504. TREATMENT UNDER THE FAIR DEBT COLLECTION PRACTICES ACT.
(a) In General.--Section 803 of the Fair Debt Collection Practices
Act (15 U.S.C. 1692a) is amended--
(1) in paragraph (5), by inserting ``, including such an
obligation or alleged obligation arising out of an income share
agreement, as that term is defined in section 2 of the ISA
Student Protection Act of 2023'' before the period at the end;
and
(2) in paragraph (6), in the first sentence, by inserting
``, including an ISA provider (as defined in section 2 of the
ISA Student Protection Act of 2023),'' after ``means any
person''.
(b) Rules of Construction.--Nothing in this section, or the
amendments made by this section, may be construed for purposes of any
other Federal law as considering--
(1) income share agreements as debts, once the ISA
recipient owes any amounts to the ISA provider under the income
share agreement; or
(2) ISA providers as lenders, once the ISA recipient owes
any amounts to the ISA provider under the applicable income
share agreement.
SEC. 505. TREATMENT OF EDUCATIONAL INCOME SHARE AGREEMENTS FOR PURPOSES
OF MILITARY LENDING ACT.
Section 987 of title 10, United States Code, is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following new
subsection:
``(i) Treatment of Educational Income Share Agreements.--The
Secretary of Defense shall prescribe regulations to apply this section
to educational ISAs (as that term is defined in section 2 of the ISA
Student Protection Act of 2023), and an educational ISA shall be deemed
to meet the annual percentage rate of interest limitation under
subsection (b) of this section if the educational ISA, as applicable,
would meet the requirements of section 102(b) of such Act (related to
appropriate risk sharing) but with reference to the rate specified in
subsection (b) of this section.''.
SEC. 506. TREATMENT UNDER THE SERVICEMEMBERS CIVIL RELIEF ACT.
Section 207 of the Servicemembers Civil Relief Act (50 U.S.C. 3937)
is amended--
(1) in subsection (d)--
(A) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively; and
(B) by inserting before paragraph (2), as
redesignated by subparagraph (A), the following new
paragraph:
``(1) Educational income share agreement.--The term
`educational income share agreement' has the meaning given the
term `educational ISA' in section 2 of the ISA Student
Protection Act of 2023.'';
(2) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(3) by inserting before subsection (e), as redesignated by
paragraph (2), the following new subsection (d):
``(d) Educational Income Share Agreements.--
``(1) In general.--An educational income share agreement
shall be considered to be in compliance with the requirements
of subsection (a) if such agreement is compliant with the
requirements of section 102(b) of the ISA Student Protection
Act of 2023.
``(2) Interest rate.--In carrying out paragraph (1) of this
subsection, the interest rate referred to in section 102(b) of
such Act shall be deemed to be the rate of interest specified
in subsection (a) of this section.''.
SEC. 507. PRESERVATION OF CONSUMERS' CLAIMS AND DEFENSES.
(a) Application of Holder in Due Course Rule to Income Share
Agreements.--Beginning on January 1, 2024, for purposes of applying
part 433 of title 16, Code of Federal Regulations (commonly known as
the ``Holder in Due Course Rule'' or the ``Holder Rule''), the term
``consumer credit contract'', as defined in section 433.1 of such
title, shall include income share agreements that--
(1) involve the advancing of funds to, or on behalf of, a
consumer in return for the consumer's agreement to an income
share agreement; and
(2) are related, in whole or substantial part, to a
purchase of goods or services from a seller who--
(A) refers the consumer to the provider of the
income share agreement; or
(B) is affiliated with the provider of the income
share agreement by common control, contract, or
business arrangement.
(b) Disclosures.--In applying section 433.2 of title 16, Code of
Federal Regulations, to a consumer credit contract that is an income
share agreement described in subsection (a)--
(1) in lieu of the disclosure required under section
433.2(a) of title 16, Code of Federal Regulations, the contract
shall contain the following disclosure in at least 10 point,
bold face type:
``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
AGREEMENT. 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 AGREEMENT.''; and
(2) in lieu of the disclosure required under section
433.2(b) of title 16, Code of Federal Regulations, the contract
shall contain the following disclosure in at least 10 point,
bold face type:
``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
AGREEMENT. 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 AGREEMENT.''.
TITLE VI--RELATION TO OTHER LAWS
SEC. 601. TREATMENT UNDER OTHER LAWS.
(a) Insurance and Wagering.--An income share agreement shall not be
treated as a contract for insurance, or as a betting or wagering
contract, under any Federal or State law, 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 Act.
(b) Payments Not Considered Prepayments.--
(1) 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 penalties, as long as--
(A) the prepayment complies with the limitations on
income share agreements required under this Act and the
amendments made by this Act; and
(B) in the case of a State law, the State law does
not expressly state that the law is intended to apply
to income share agreements as defined in this Act.
(2) Nonapplicability.--An income share agreement under this
Act is not subject to the application of section 140(e) of the
Truth in Lending Act (15 U.S.C. 1650(e)), to the extent it
would be applicable to an income share agreement.
(c) Treatment of Educational ISAs.--
(1) Assignment of future wages for educational isas.--An
educational ISA shall be a valid, binding, and enforceable
contract, notwithstanding any State law limiting or otherwise
regulating assignments of future wages or other income, 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
Act.
(2) Preemption of state law with respect to usury and
interest rates for educational isas.--An educational ISA shall
not be subject to a State law with respect to usury, interest
rates, fees, and charges for credit, loans, credit or
installment sales, or a State law requiring that installment
payments be substantially equal in amount, 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 Act.
(3) Preemption of state laws with respect to ability-to-
repay and licensing laws for educational isas.--An educational
ISA shall not be subject to a State law with respect to
``ability-to-repay'' requirements, and neither an ISA provider
issuing an educational ISA or its successor in interest, nor
any entity servicing any educational ISA on behalf of an ISA
provider or its successor in interest, shall be subject to any
State law with respect to licensing or registration, 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 Act.
SEC. 602. RELATION TO STATE LAW.
(a) In General.--
(1) Rule of construction.--This Act, other than the
provisions of titles I and III and section 501, may not be
construed as annulling, altering, or affecting, or exempting
any person subject to the provisions of this Act from complying
with the statutes, regulations, orders, or interpretations in
effect in any State, except to the extent that any such
provision of law is inconsistent with the provisions of this
Act, and then only to the extent of the inconsistency.
(2) Greater protection under state law.--For purposes of
this subsection, a statute, regulation, order, or
interpretation in effect in any State is not inconsistent with
the provisions of this Act if the protection that such statute,
regulation, order, or interpretation affords to ISA recipients
or applicants is greater than the protection provided under
this Act. A determination regarding whether a statute,
regulation, order, 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 person.
(b) Relation to Other Provisions of Enumerated Consumer Laws That
Relate to State Law.--No provision of this Act, except as provided in
titles I and III and section 501, shall be construed as modifying,
limiting, 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 law.
(c) Additional Consumer Protection Regulations in Response to State
Action.--
(1) 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 Bureau.
(2) Bureau considerations required for issuance of final
regulation.--Before prescribing a final regulation based upon a
notice issued under paragraph (1), the Bureau shall take into
account whether--
(A) the proposed regulation would afford greater
protection to consumers than any existing regulation;
(B) the intended benefits of the proposed
regulation for consumers would outweigh any increased
costs or inconveniences for consumers, and would not
discriminate unfairly against any category or class of
consumers; and
(C) a Federal banking agency has advised that the
proposed regulation is likely to present an
unacceptable safety and soundness risk to insured
depository institutions.
(3) Explanation of considerations.--The Bureau--
(A) shall include a discussion of the
considerations required in paragraph (2) in the Federal
Register notice of a final regulation prescribed
pursuant to this subsection; and
(B) whenever the Bureau determines not to prescribe
a final regulation, shall publish an explanation of
such determination in the Federal Register, and provide
a copy of such explanation to each State that enacted a
resolution in support of the proposed regulation, the
Committee on Banking, Housing, and Urban Affairs of the
Senate, and the Committee on Financial Services of the
House of Representatives.
(4) 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 person.
(5) Rule of construction.--No provision of this subsection
shall be construed as exempting the Bureau from complying with
subchapter II of chapter 5 of title 5, United States Code.
TITLE VII--ENFORCEMENT AND REPORTING
SEC. 701. ENFORCEMENT.
(a) Enforcing Agencies.--Subject to subtitle B of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5511 et seq.), compliance
with the requirements imposed under this Act shall be enforced under--
(1) section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818) by the appropriate Federal banking agency, as
defined in section 3(q) of that Act (12 U.S.C. 1813(q)), with
respect to--
(A) national banks, Federal savings associations,
and Federal branches and Federal agencies of foreign
banks;
(B) member banks of the Federal Reserve System
(other than national banks), branches and agencies of
foreign banks (other than Federal branches, Federal
agencies, and insured State branches of foreign banks),
commercial lending companies owned or controlled by
foreign banks, and organizations operating under
section 25 or 25A of the Federal Reserve Act (12 U.S.C.
601 et seq.); and
(C) banks and State savings associations insured by
the Federal Deposit Insurance Corporation (other than
members of the Federal Reserve System), and insured
State branches of foreign banks;
(2) the Federal Credit Union Act (12 U.S.C. 1751 et seq.),
by the Director of the National Credit Union Administration,
with respect to any Federal credit union;
(3) part A of subtitle VII of title 49, United States Code,
by the Secretary of Transportation, with respect to any air
carrier or foreign air carrier subject to that part;
(4) the Packers and Stockyards Act, 1921 (7 U.S.C. 191 et
seq.) (except as provided in section 406 of that Act (7 U.S.C.
226)), by the Secretary of Agriculture, with respect to any
activities subject to that Act;
(5) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.),
by the Farm Credit Administration with respect to any Federal
land bank, Federal land bank association, Federal intermediate
credit bank, or production credit association;
(6) subtitle E of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5561 et seq.), by the Bureau, with respect to
any person subject to this Act; and
(7) sections 21B and 21C of the Securities Exchange Act of
1934 (15 U.S.C. 78u-2, 78u-3), in the case of a broker or
dealer, other than a depository institution, by the Securities
and Exchange Commission.
(b) Violations of This Act Deemed Violations of Pre-Existing
Statutory Requirements; Additional Agency Powers.--For the purpose of
the exercise by any agency referred to in subsection (a) of its powers
under any Act referred to in that subsection, a violation of any
requirement imposed under this Act shall be deemed to be a violation of
a requirement imposed under that Act. In addition to its powers under
any provision of law specifically referred to in subsection (a), each
of the agencies referred to in that subsection may exercise, for the
purpose of enforcing compliance with any requirement imposed under this
Act, any other authority conferred on it by law.
(c) 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 (1) through (5) of
subsection (a), and subject to subtitle B of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5511 et seq.), the Bureau shall be
authorized to enforce such requirements. All of the functions and
powers of the Bureau under the Consumer Financial Protection Act of
2010 (12 U.S.C. 5301 et seq.) are available to the Bureau to enforce
compliance by any person with the requirements under this Act,
irrespective of whether that person is engaged in commerce or meets any
other jurisdictional tests under the Consumer Financial Protection Act
of 2010 (12 U.S.C. 5301 et seq.).
(d) 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
Act.
SEC. 702. REPORTING REQUIREMENT FOR THE BUREAU OF CONSUMER FINANCIAL
PROTECTION.
Not less than frequently than once every 5 years, the Director
shall submit to Congress a report that includes--
(1) information on the prevalence and utilization of
educational ISAs and income share agreements; and
(2) any other information pertaining to educational ISAs
and income share agreements that the Director determines is
appropriate.
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