Bill > HR1143

This bill, the Lenders Offer Assistance Now (LOAN) Act, has two key provisions: 1. It amends the Truth in Lending Act to require lenders to discharge a private education loan if the student borrower or cosigner becomes permanently and totally disabled, as determined by the Secretary of Education or the Department of Veterans Affairs. This discharge will not be considered as income or a resource for purposes of determining the borrower's eligibility for federal, state, or local benefits and assistance. 2. It amends the Bankruptcy Code to remove the exception that prevented the discharge of student loans in bankruptcy, making it possible for individuals to have their student loans, including private education loans, discharged through bankruptcy proceedings. This change applies only to bankruptcy cases filed on or after the date of enactment of the bill.