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Private Student Loan Forgiveness for Death or Disability

This act aims to protect students and co-signers of private education loans. If a student borrower dies or becomes totally and permanently disabled, the loan will be discharged, and the lender cannot attempt to collect it. Additionally, the discharged amounts will not be taxed.
Key points
Private Student Loan Discharge: If a student borrower of a private education loan dies or becomes totally and permanently disabled, their liability for that loan will be cancelled.
Co-signer Protection: Individuals who co-signed the loan with the student will also be released from responsibility for the debt in case of the student's death or permanent disability.
Tax Exemption for Discharged Amounts: Amounts discharged due to death or permanent disability will not be considered taxable income.
No Disability Status Monitoring: After a loan is discharged due to disability, the lender will not be allowed to monitor the student's disability status.
Effective Date: The changes will take effect one year after the act is enacted.
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Additional Information
Print number: 117_HR_2498
Sponsor: Rep. Dean, Madeleine [D-PA-4]
Process start date: 2021-04-14
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Private Loan Disability Discharge Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2498.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-14.

What are the main provisions?

Key points include:

  • Private Student Loan Discharge: If a student borrower of a private education loan dies or becomes totally and permanently disabled, their liability for that loan will be cancelled.
  • Co-signer Protection: Individuals who co-signed the loan with the student will also be released from responsibility for the debt in case of the student's death or permanent disability.
  • Tax Exemption for Discharged Amounts: Amounts discharged due to death or permanent disability will not be considered taxable income.
  • No Disability Status Monitoring: After a loan is discharged due to disability, the lender will not be allowed to monitor the student's disability status.
  • Effective Date: The changes will take effect one year after the act is enacted.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Dean, Madeleine [D-PA-4].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Education Benefits Taxes