Sec. 1776. Temporary relief for private student loan borrowers
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/bill/116/hr/6395/eh/section-1776·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A servicer of a private education loan extended to a covered borrower shall suspend all payments on such loan through September 30, 2021. Interest shall not accrue on a loan described under subsection
(a)for which payment was suspended for the period of the suspension. A servicer of a private education loan extended to a covered borrower shall deem each month for which a loan payment was suspended under this section as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program for which the borrower would have otherwise qualified. During the period in which a loan payment was suspended under this section, the servicer of the loan shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment that has been suspended is treated as if it were a regularly scheduled payment made by a borrower. During the period for which a loan payment was suspended under this section, the servicer or holder of the loan shall suspend all involuntary collection related to the loan. To inform covered borrowers of the actions taken in accordance with this section and ensure an effective transition, the servicer of a private education loan extended to a covered borrower shall— not later than 15 days after the date of enactment of this Act, notify covered borrowers— of the actions taken in accordance with subsections
(a)and
(b)for whom payments have been suspended and interest waived; of the actions taken in accordance with subsection
(e)for whom collections have been suspended; of the option to continue making payments toward principal; and that the program under this section is a temporary program; and beginning on August 1, 2020, carry out a program to provide not less than 6 notices by postal mail, telephone, or electronic communication to covered borrowers indicating when the borrower’s normal payment obligations will resume. In this section: The term covered borrower means a borrower of a private education loan. The term private education loan has the meaning given the term in section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 ).
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Sec. 1776
Temporary relief for private student loan borrowers
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