II 111th CONGRESS 1st Session S. 2733 IN THE SENATE OF THE UNITED STATES November 5, 2009 Mr. Brown (for himself, Ms. Mikulski, Mr. Franken, and Mr. Bennet) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To provide for the establishment of a Private Education Loan Ombudsman.

1.

Appointment of Private Education Loan Ombudsman

The Secretary of the Treasury, in consultation with the Secretary of Education, shall appoint a Private Education Loan Ombudsman (in this Act referred to as the Ombudsman) to provide timely assistance to borrowers of private education loans.

2.

Public information

The Secretary of the Treasury and the Secretary of Education shall disseminate information about the availability and functions of the Ombudsman to borrowers and potential borrowers, as well as institutions of higher education, lenders, guaranty agencies, loan servicers, and other participants in private education student loan programs and Federal student loan programs.

3.

Functions of Ombudsman

The Ombudsman appointed under this Act shall— (1)in accordance with regulations of the Secretary of the Treasury, receive, review, and attempt to resolve informally complaints from borrowers of loans described in section 1, including, as appropriate, attempts to resolve such complaints in collaboration with the Department of Education and with institutions of higher education, lenders, guaranty agencies, loan servicers, and other participants in private education loan programs; (2)not later than 90 days after the date of enactment of this Act, establish a memorandum of understanding with the student loan ombudsman established under section 141(f) of the Higher Education Act of 1965 (20 U.S.C. 1018(f)), to ensure coordination in providing assistance to serving borrowers seeking to resolve complaints related to their private education or Federal student loans; (3)compile and analyze data on borrower complaints regarding private education loans; and (4)make appropriate recommendations to the Secretary of the Treasury, the Secretary of Education, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Financial Services and the Committee on Education and Labor of the House of Representatives.

4.

Annual Reports

(a)

In general

The Ombudsman shall prepare an annual report that describes the activities, and evaluates the effectiveness of the Ombudsman during the preceding year. (b)

Submission

The report required by subsection (a) shall be submitted on the same date annually to the Secretary of the Treasury, the Secretary of Education, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Financial Services and the Committee on Education and Labor of the House of Representatives.

5.

Definitions

For purposes of this Act, the terms private education loan and institution of higher education have the same meanings as in section 140 of the Truth in Lending Act (15 U.S.C. 1650).