WASHINGTON – Today, the House of Representatives passed Representative Madeleine Dean’s Private Loan Disability Discharge Amendment (H.Amdt.98) as part of the National Defense Authorization Act for Fiscal Year 2022 with a vote of 219-204. The Amendment protects totally and permanently disabled individuals and their families from unfair lending practices.
Under current law, private lenders are not required to discharge student loans for borrowers or their cosigners if the borrower becomes totally and permanently disabled — unlike federal student loans which require this discharge. The Private Loan Disability Discharge Amendment will require that private student lenders discharge the loan balance for both the borrower and the co-signer if the borrower becomes totally and permanently disabled.
“This amendment was inspired by a constituent whose family faced exorbitant student loans after she became totally disabled and could no longer contribute income,” Rep. Dean said. “Today, the House learned from her troubling experience and protected people with disabilities and their families from unfair student loan practices.”
The Private Loan Disability Discharge Amendment was among three amendments passed as part of the FY2022 NDAA. The SECURE Notarization Amendment will make it easier for signers outside the U.S. — such as military personnel and their families — to securely notarize their documents. The Human Trafficking Coordinator Amendment would establish a Human Trafficking Coordinator who works closely with the U.S. Treasury to monitor illicit financing of human trafficking operations.
After all proposed amendments have been considered, the FY2022 NDAA will pass in the House and be voted on in the Senate.
Rep. Madeleine Dean is a mother, grandmother, attorney, professor, former four-term member of the Pennsylvania House of Representatives, and U.S. Representative for the Fourth District of Pennsylvania.