Student Debt Repayment Fairness Act of 2014

Student Debt Repayment Fairness Act of 2014 - Amends the Truth in Lending Act to prohibit a private educational lender from accelerating the repayment terms of the outstanding obligation of a borrower in good standing with respect to a particular private education loan if a cosigner jointly liable on the loan is unable to fulfill any obligations with respect to it by reason of death or disability.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4513 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4513

   To amend the Truth in Lending Act to prohibit private educational 
lenders from requiring accelerated repayment of private education loans 
        upon the death or disability of a cosigner of the loan.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 2014

  Mr. Kildee introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To amend the Truth in Lending Act to prohibit private educational 
lenders from requiring accelerated repayment of private education loans 
        upon the death or disability of a cosigner of the loan.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Debt Repayment Fairness Act 
of 2014''.

SEC. 2. PROHIBITION ON REQUIRING FULL REPAYMENT OF PRIVATE EDUCATION 
              LOAN UPON DEATH OR DISABILITY OF COSIGNER.

    Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is amended 
by adding at the end the following new subsection:
    ``(g) Prohibition on Accelerating Repayment Upon Death or 
Disability of a Cosigner on a Private Education Loan.--
            ``(1) In general.--If a cosigner who is jointly liable on a 
        private education loan is unable to fulfill any obligations 
        with respect to the loan by reason of death or disability, the 
        private educational lender may not accelerate the repayment 
        terms of any outstanding obligation if the borrower is in good 
        standing (as determined by the Bureau) with respect to the 
        loan.
            ``(2) Disability defined.--In this subsection, the term 
        `disability' means a permanent and total disability, as 
        determined in accordance with the regulations of the Secretary 
        of Education under section 437(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1087(a)), or a determination by the 
        Secretary of Veterans Affairs that the individual is 
        unemployable due to a service-connected condition.''.
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