[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1675 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1675

  To promote quality student loan servicing by improving the borrower 
           experience for borrowers of Federal Direct Loans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2017

  Mr. Blunt (for himself, Ms. Warren, Mr. Lankford, and Mrs. Shaheen) 
introduced the following bill; which was read twice and referred to the 
          Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
  To promote quality student loan servicing by improving the borrower 
           experience for borrowers of Federal Direct Loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Servicer Performance 
Accountability Act''.

SEC. 2. COMPETITION IN STUDENT LOAN SERVICING.

    (a) Cancellation of Solicitations.--The Secretary of Education 
shall cancel the Department of Education solicitations for the Federal 
Aid Servicing Solution dated April 4, 2016 and October 26, 2016, 
including any amendments to those solicitations (Solicitation No. ED-
FSA-17-R-0001 et seq).
    (b) Competition in Student Loan Servicing.--Section 456 of the 
Higher Education Act of 1965 (20 U.S.C. 1087f) is amended by adding at 
the end the following:
    ``(c) Competition in Student Loan Servicing.--
            ``(1) Competition.--As of the date of enactment of the 
        Student Loan Servicer Performance Accountability Act, in order 
        to promote accountability and high-quality services to 
        borrowers, the Secretary shall not issue any contract 
        solicitation for a new Federal student loan servicing solution 
        unless such a solution--
                    ``(A) provides for the participation of multiple 
                student loan servicers that contract directly with the 
                Department of Education; and
                    ``(B) allocates student loan borrower accounts to 
                eligible student loan servicers based on performance.
            ``(2) Prohibition.--The Secretary shall not award a 
        contract to a single servicer to service all Federal Direct 
        Loans.''.
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