Bill > HR2498

This bill, the Private Loan Disability Discharge Act of 2021, aims to provide for the discharge of private education loans in the case of the death or total and permanent disability of the student obligor (borrower). The key provisions are: 1. It amends the Truth in Lending Act to require private education loan holders to discharge the liability of a student obligor upon notification of their death or total and permanent disability, and prohibit them from attempting to collect on the outstanding liability or monitoring the disability status after the discharge. 2. It defines "total and permanent disability" as the individual being totally and permanently disabled, as defined in federal regulations. 3. It also amends the Internal Revenue Code to exempt the discharged loan amount from being considered taxable income for the student obligor. 4. The Bureau of Consumer Financial Protection is authorized to issue rules to implement these changes, which will take effect one year after the enactment of the bill.

Business and Industry, Military Affairs and Security

https://www.congress.gov/bill/117th-congress/house-bill/2498/all-info