Bill Summary: Private Loan Disability Discharge Act of 2019

This bill, also known as H.R. 4545, aims to provide protections for borrowers and cosigners of private education loans in case of death or total and permanent disability. It amends the Truth in Lending Act to include provisions regarding loan discharge in such situations. The bill was introduced by Ms. D EAN in the House of Representatives on September 27, 2019, and has since gained additional sponsors.

Key Provisions

The bill includes the following key provisions:

Section 2(a) amends Section 140(g) of the Truth in Lending Act to include discharge of private education loan liability in case of death or total and permanent disability of the student obligor. The loan holder must discharge the liability and cannot attempt to collect payments or monitor disability status after receiving notification.
Section 2(b) amends Section 108(f)(5)(A) of the Internal Revenue Code of 1986 to include discharge of private education loan liability under Section 140(g) of the Truth in Lending Act as an exception to tax liability.
Section 2(c) grants the Director of the Bureau of Consumer Financial Protection the authority to issue rules to implement the amendments made by Section 2(a).
Section 2(d) states that the amendments made by Section 2 shall take effect one year after the date of the enactment of the bill.

The bill has been reported by the Committee on Financial Services on December 21, 2020, with an amendment. The Committee on Ways and Means has been discharged from the bill, and it has been committed to the Committee of the Whole House on the State of the Union for further consideration.

HB 4545 Private Loan Disability Discharge Act of 2019

US Congress 116th Congress

Bill Texts

Introduced 12/23/2020

Introduced 10/03/2019

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Sponsors (5)

Rep. Daniel Kildee

Co-Sponsor

Rep. Frank Pallone

Co-Sponsor

Rep. Brad Sherman

Co-Sponsor

Rep. Sean Casten

Co-Sponsor

Rep. Madeleine Dean

Primary Sponsor