Student Loan Borrowers' Bill of Rights Act of 2019

This bill permits a borrower to discharge a student loan in a bankruptcy case and establishes requirements concerning (1) student loan debt collection, (2) student loan forgiveness, (3) options for student loan payments, (4) the exclusion of discharged student loan debt from an individual's gross income, and (5) loan defaults.

Specifically, the bill allows federal or private student loans to be discharged in bankruptcy cases and reinstates the six-year statute of limitations for certain student loans.

The Department of Education must cancel 50% of the balance of the interest and principal due on student loans for borrowers who make 60 monthly payments on such loans after October 1, 2019, and work at a public service job for 5 years during the repayment period.

In addition, the bill protects borrowers from efforts to collect student loan debt from (1) offsets of Social Security, railroad retirement, or black lung benefits; (2) wage garnishment; or (3) offsets of tax refunds.

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.

The bill makes parent PLUS loans eligible for income-based repayment plans.

Finally, the bill prohibits evidence of an individual's default on a federal student loan from being used (1) in proceedings involving the individual's professional or vocational license, or (2) to prohibit the individual from accessing transcripts and degrees.