Sec. 302. Protections for obligors and cosigners in case of death or total and permanent disability
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Section 140(g) of the Truth in Lending Act ( 15 U.S.C. 1650(g) ) is amended— in paragraph (2)— in the heading, by striking ; in case of death of borrower in subparagraph (A), by inserting after of the death , the following: or total and permanent disability ; and in subparagraph (C), by inserting after of the death , the following: or total and permanent disability ; and by adding at the end the following: The holder of a private education loan shall, when notified of the death or total and permanent disability of a student obligor (and any cosigner), discharge the liability of the student obligor on the loan and may not, after such notification— attempt to collect on the outstanding liability of the student obligor; and in the case of total and permanent disability, monitor the disability status of the student obligor at any point after the date of discharge.
The holder of a private education loan shall, when notified of the discharge of liability of a student obligor on a loan described under section 108(f)(5)(A) of the Internal Revenue Code of 1986, discharge any liability of the student obligor (and any cosigner) on any private education loan which the private education loan holder holds and may not, after such notification— attempt to collect on the outstanding liability of the student obligor; and in the case of total and permanent disability, monitor the disability status of the student obligor at any point after the date of discharge.
For the purposes of this subsection and with respect to an individual, the term total and permanent disability means the individual is totally and permanently disabled, as such term is defined in section 685.102(b) of title 34, Code of Federal Regulations. . The Director of the Bureau of Consumer Financial Protection may issue rules to implement the amendments made by subsection
(a)as the Director determines appropriate.
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Sec. 302
Protections for obligors and cosigners in case of death or total and permanent disability
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