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H.R.2366 – To amend title 11 of the United States Code to make student loans dischargeable.

Official Title as Introduced:

To amend title 11 of the United States Code to make student loans dischargeable.

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H.R.1127 – To increase purchasing power, strengthen economic recovery, and restore fairness in financing higher education in the United States through student loan forgiveness, caps on interest rates on Federal student loans, and refinancing opportunities for private borrowers, and for other purposes.

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H.R.1193 – Financial Literacy to Financial Freedom Act

Short Titles as Introduced:

Financial Literacy to Financial Freedom Act

Official Title as Introduced:

To amend the Higher Education Act of 1965 to authorize institutions of higher education to provide additional loan counseling, and for other purposes.

Summary:

Introduced in House (02/16/2017)

Financial Literacy to Financial Freedom Act

This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to modify loan counseling requirements for an institution of higher education (IHE) that participates in federal student aid programs.

Currently, an IHE must provide one-time entrance counseling to a student who is a first-time Direct Loan (DL) program borrower. This bill allows an IHE to require any student DL program borrower to complete additional counseling on the terms, conditions, and responsibilities of a loan at or prior to its disbursement.

Additionally, it requires an IHE to ensure that student and parent DL program borrowers annually accept a loan affirmatively prior to the first disbursement of such loan.

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H.R.134 – Home Foreclosure Reduction Act of 2017

Short Titles as Introduced:

Home Foreclosure Reduction Act of 2017

Official Title as Introduced:

To amend title 11 of the United States Code with respect to modification of certain mortgages on principal residences, and for other purposes.

Summary:

Introduced in House (01/03/2017)

Home Foreclosure Reduction Act of 2017

This bill amends federal bankruptcy law governing a Chapter 13 debtor (adjustment of debts of an individual with regular income) to exclude from the computation of debts the secured or unsecured portions of: (1) debts secured by the debtor’s principal residence if the value of the residence is less than the applicable maximum amount of noncontingent, liquidated, secured debts; or (2) debts secured or formerly secured by the debtor’s principal residence that was either sold in foreclosure or surrendered to the creditor if the property’s value was less than the applicable maximum amount of noncontingent, liquidated, secured debts.

The bill applies the credit counseling requirement to a Chapter 13 debtor who certifies receipt of notice that the holder of a claim secured by the debtor’s principal residence may commence a foreclosure on it.

Courts must disallow a claim that is subject to any remedy for rescission under the Truth in Lending Act, notwithstanding the prior entry of a foreclosure judgment.

A Chapter 13 bankruptcy plan may modify the rights of claim holders with respect to a claim for a loan originated before the effective date of this bill and secured by a security interest in the debtor’s principal residence that is the subject of a foreclosure notice

The bill authorizes reduction of a claim secured by the debtor’s principal residence, but only in specified circumstances, particularly if the debtor sells the residence.

A debtor is not liable for certain fees and charges incurred while the bankruptcy case is pending and arising from a debt secured by the debtor’s principal residence, unless the claim holder observes specified requirements.

The bill adds to conditions for court confirmation of a plan in bankruptcy that: (1) the holder of a claim secured by the debtor’s principal residence retain the lien securing the claim until the later of the payment of the claim as reduced and modified, completion of all payments under the plan, or the discharge of a debtor from all debts; and (2) the plan modifies the claim in good faith and the court does not find that the debtor has been convicted of obtaining by actual fraud the extension, renewal, or refinancing of credit that gives rise to a modified claim.

Upon request, the court may confirm a plan proposing a reduction in the interest rate on the loan secured by such security interest and that does not reduce the principal, if certain requirements are met.

The bill excludes from the final discharge of a debtor from all debts any unpaid portion of such a claim as reduced.

The federal judicial code is amended to prescribe standing trustee fees regarding certain payments received under a Chapter 13 bankruptcy plan.