Sec. 110501. Payments for private education loan borrowers as a result of the COVID–19 national emergency
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Section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 ) is amended by adding at the end the following new subsection: Effective on the date of the enactment of this section, until September 30, 2021, the Secretary of the Treasury shall, for each borrower of a private education loan, pay the total amount due for such month on the loan, based on the payment plan selected by the borrower or the borrower’s loan status. The maximum amount of aggregate payments that the Secretary of the Treasury may make under subparagraph
(A)with respect to an individual borrower is $10,000. With respect to any loan in repayment until September 30, 2021, interest due on a private education loan during such period shall not be capitalized at any time until after September 30, 2021. Until September 30, 2021— during the period in which the Secretary of the Treasury is making payments on a loan under paragraph (1), the Secretary shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment made by the Secretary is treated as if it were a regularly scheduled payment made by a borrower; and no adverse credit information may be furnished to a consumer reporting agency for any private education loan. Not later than 15 days following the date of enactment of this subsection, and monthly thereafter until September 30, 2021, the Secretary of the Treasury shall provide a notice to all borrowers of private education loans— informing borrowers of the actions taken under this subsection; providing borrowers with an easily accessible method to opt out of the benefits provided under this subsection; and notifying the borrower that the program under this subsection is a temporary program and will end on September 30, 2021. Until September 30, 2021, the holder of a private education loan shall immediately take action to halt all involuntary collection related to the loan. During the period in which the Secretary of the Treasury is making payments on a loan under paragraph (1), the servicer of such loan shall grant the borrower forbearance as follows: A temporary cessation of all payments on the loan other than the payments of interest and principal on the loan that are made under paragraph (1). For borrowers who are delinquent but who are not yet in default before the date on which the Secretary begins making payments under paragraph (1), the retroactive application of forbearance to address any delinquency. Holders and servicers of private education loans shall report, to the satisfaction of the Secretary of the Treasury, the information necessary to calculate the amount to be paid under this subsection. This subsection shall only apply to a borrower of a private education loan who is an economically distressed borrower. In this paragraph, the term economically distressed borrower means a borrower of a private education loan who, as of March 12, 2020— based on financial state or other conditions, would be otherwise eligible, if the borrower instead had a Federal student loan, of having a monthly payment due on such loan of $0 pursuant to an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(d)(1)(D) ) or an income-based repayment plan under section 493C of such Act ( 20 U.S.C. 1098e ); was in default on such loan; had a payment due on such loan that was at least 90 days past due; or based on financial state or other conditions, was in forbearance or deferment. Not later than 7 days after the date of enactment of this paragraph, the Director of the Bureau, in consultation with the Secretary of Education, shall issue rules to implement this paragraph, including providing a detailed description of how a borrower of a private education loan will be considered an economically distressed borrower as defined under each clause of subparagraph (B). . There is appropriated to the Secretary of the Treasury, out of amounts in the Treasury not otherwise appropriated, $45,000,000,000 to carry out this title and the amendments made by this title.
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Sec. 110501
Payments for private education loan borrowers as a result of the COVID–19 national emergency
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