S3404-118

Introduced

To require certain protections for student loan borrowers, and for other purposes.

118th Congress Introduced Dec 5, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

Enhances protections for student loan borrowers through comprehensive reforms to federal and private education loans. Requires lenders to provide clearer disclosures, establishes loan rehabilitation pathways that remove defaults from credit reports, mandates cancellation of private loans upon death or permanent disability, and creates a centralized portal for federal loan servicing.

Who Benefits and How

Student loan borrowers gain improved disclosures about repayment options, servicemember benefits, and alternative repayment plans. Borrowers who rehabilitate defaulted loans can have negative credit history removed. Disabled borrowers and estates of deceased borrowers are protected through mandatory loan cancellation. Veterans and servicemembers receive dedicated liaisons and protections against credit discrimination. Co-borrowers gain clearer release requirements.

Who Bears the Burden and How

Private education lenders must comply with extensive new disclosure requirements, offer loan rehabilitation programs, cancel loans upon borrower death or disability, and cannot accelerate loans except for payment default. Loan servicers must designate repayment specialists and servicemember liaisons. The Department of Education must establish a centralized borrower portal within 2 years.

Key Provisions

  • Requires disclosure of servicemember benefits and repayment specialist contact information before loans enter repayment
  • Mandates removal of default from credit history upon loan rehabilitation or full repayment
  • Private loans must be cancelled upon borrower death, permanent disability, or VA determination of unemployability
  • Prohibits acceleration clauses except for payment default; requires clear co-borrower release terms
  • Department of Education must create centralized portal for federal loan account information and payments

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Strengthens consumer protections for student loan borrowers, including disclosure requirements, loan rehabilitation options, co-borrower release provisions, and a centralized point of access for federal loan servicing

Key Policy Areas

Consumer Finance, Education, Veterans Affairs

Primary Purpose

Strengthens consumer protections for student loan borrowers, including disclosure requirements, loan rehabilitation options, co-borrower release provisions, and a centralized point of access for federal loan servicing

Policy Domains

Consumer Finance Education Veterans Affairs

Full Bill - Student Loan Borrower Bill of Rights

Identified Gains
Contextual inference, no direct clause citation
  • Student loan borrowers
  • Veterans and servicemembers with student loans
  • Borrowers in default seeking rehabilitation
  • Co-borrowers on private education loans
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Private education lenders
  • Student loan servicers
  • Department of Education
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Legislative Progress

Introduced
Introduced Committee Passed
Dec 5, 2023

Mr. Durbin (for himself, Ms. Klobuchar, Mr. Reed, Ms. Smith, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

General Public
10 mentions across 8 clauses
+10 positive

All postsecondary education loan borrowers, Borrowers rehabilitating private student loans, Borrowers who repay defaulted federal loans

Credit Intermediation
9 mentions across 8 clauses
-8 negative ?1 uncertain

Federal loan servicers, Federal loan servicers and guaranty agencies, Federal student loan servicers

Government
8 mentions across 6 clauses
-8 negative

Bureau of Consumer Financial Protection, Department of Education, Federal banking agencies

Education
1 mention across 1 clause
-1 negative

Higher education institutions

12/12
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Consumer Finance Education Veterans Affairs
Actor Mappings
"the_director"
→ Director of the Bureau of Consumer Financial Protection
"the_secretary"
→ Secretary of Education

Key Definitions

Terms defined in this bill

2 terms
"borrower" §8_borrower

A borrower of a postsecondary education loan

"postsecondary education loan" §8_postsecondary_education_loan

Private education loans under TILA, loans under HEA title IV parts B, D, or E, and loans under Public Health Service Act titles VII or VIII

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology