H.R. 3630

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Student Loan Borrowers' Bill of Rights Act of 2017 This bill allows educational loans to be discharged in bankruptcy cases. In addition, the bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to reinstate the six-year statute of limitations for certain student loans. The bill prohibits the collection of amounts individuals owe the Department of Education (ED) under title IV through: (1) offsets of Social Security, railroad retirement, or black lung benefits; (2) offsets of tax refunds; or (3) wage garnishment. The bill amends the Internal Revenue Code to (1) exclude discharged student loan debt from an individual's gross income, and (2) allow distributions from qualified tuition programs (known as 529 plans) to be used for student loan payments. Parents with certain PLUS loans made on behalf of dependent students are now eligible for income-based repayment plans. The bill prohibits: (1) evidence of an individual's default on a loan made, insured, or guaranteed under title IV from being used in a federal or state proceeding involving the individual's professional or vocational license; or (2) institutions of higher education from blocking students' access to their student records due to loan default. ED must cancel 50% of the balance of the interest and principal due on direct loans that are not in default for borrowers who are employed in a public service job for five years during repayment and make 60 monthly payments on such loans after October 1, 2017.

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