Fair Student Loan Debt Collection Practices Act
This bill prohibits a debt collector from collecting on federal student loan debt owed by a borrower earning under a certain income. Specifically, a federal student loan debt collector may not attempt to collect if a borrower would qualify for a zero-dollar payment under an income-driven repayment plan. Additionally, a debt collector may not attempt to collect an amount greater than the payment the borrower would owe under such a plan.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5287 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 5287
To amend the Fair Debt Collection Practices Act to prohibit debt
collectors from collecting on certain Federal student loan debt when
the borrower would not be required to make payments under an income-
driven repayment plan, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 3, 2019
Mr. Lawson of Florida introduced the following bill; which was referred
to the Committee on Financial Services, and in addition to the
Committees on the Judiciary, and Education and Labor, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Fair Debt Collection Practices Act to prohibit debt
collectors from collecting on certain Federal student loan debt when
the borrower would not be required to make payments under an income-
driven repayment plan, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Student Loan Debt Collection
Practices Act''.
SEC. 2. COLLECTION RESTRICTIONS WITH RESPECT TO FEDERAL STUDENT LOANS.
(a) In General.--The Fair Debt Collection Practices Act (15 U.S.C.
1692 et seq.) is amended--
(1) by inserting after section 811 the following:
``Sec. 811A. Collection restrictions with respect to Federal student
loans
``(a) Prohibition on Collecting From Borrowers Below Certain Income
Guidelines.--A debt collector may not attempt to collect a Federal
student loan debt from a borrower during any period of time when a
similarly situated borrower would not be required to make a payment
under an income-driven repayment plan.
``(b) Limitation on Amounts Collected Based on Certain Income
Guidelines.--During any 1-month period, a debt collector may not
attempt to collect from a borrower an amount with respect to a Federal
student loan debt that exceeds the amount that a similarly situated
borrower would be required to make for such month under an income-
driven repayment plan.
``(c) Certification Before Accepting Payment.--A debt collector may
not accept any payment with respect to a Federal student loan debt
unless the debt collector first certifies to the borrower that the
borrower is not eligible for any administrative discharge of such debt.
``(d) Definitions.--In this section:
``(1) Debt collector.--The term `debt collector'--
``(A) has the meaning given the term under section
803; and
``(B) means any other person that enters into a
contract with the Secretary of Education pursuant to
section 456 of the Higher Education Act of 1965 (20
U.S.C. 1087f) to collect on a loan made, insured, or
guaranteed under title IV of such Act (20 U.S.C. 1070
et seq.).
``(2) Federal student loan.--The term `Federal student
loan' means a loan made, insured, or guaranteed under title IV
of the Higher Education Act of 1965.
``(3) Federal student loan debt.--The term `Federal student
loan debt' means a debt with respect to a Federal student loan.
``(4) Income-driven repayment plan.--The term `income-
driven repayment plans' means an income-driven repayment plan
described under section 493C of the Higher Education Act of
1965 (20 U.S.C. 1098e) made to a new borrower on or after July
1, 2014.
``(5) Similarly situated borrower.--With respect to a
borrower, the term `similarly situated borrower' means another
borrower that has the same income and family size
characteristics.''; and
(2) in the table of contents for such Act, by inserting
after the item relating to section 811 the following:
``811A. Collection restrictions with respect to Federal student
loans.''.
(b) Debt Waiver Requirements.--Section 3711(g) of the title 31,
United States Code, is amended by adding at the end the following:
``(11) The Secretary of the Treasury shall, before making a
determination at the request of the Secretary of Education under
paragraph (2)(B), require the Secretary of Education to establish
regulations or procedures approved by the Secretary of the Treasury--
``(A) to ensure that any entity awarded a contract pursuant
to section 456 of the Higher Education Act of 1965 (20 U.S.C.
1087f) to collect payments from student loan borrowers in
default complies with the requirements of the Fair Debt
Collection Practices Act; and
``(B) to ensure that any use by the Secretary of Education
of the wage garnishment authority pursuant to section 488A of
the Higher Education Act of 1965 (20 U.S.C. 1095a) be limited
to--
``(i) the collection of debts from borrowers who
would not otherwise be entitled to loan cancellation,
discharge, or forgiveness under any applicable
provision of the Higher Education Act of 1965; and
``(ii) the collection of debts from borrowers for
amounts less than or equal to the payment that would be
required under an income-driven repayment plan for a
similarly situated borrower (as such terms are defined,
respectively, under section 811A(d) of the Fair Debt
Collection Practices Act).''.
(c) Waiver Review and Evaluation.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of the Treasury
shall--
(1) review and evaluate any determination made at the
request of the Secretary of Education under section
3711(g)(2)(B) of title 31, United States Code; and
(2) rescind or reissue such a determination to comply with
the requirements established by paragraph (11) of such section,
as added by subsection (b) of this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 32 - 24.
Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.
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