[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7359 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7359

To provide a framework for the Bureau of Consumer Financial Protection 
 and the Department of Education to coordinate in providing assistance 
to and serving borrowers seeking to resolve complaints related to their 
  private education or Federal student loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 14, 2024

 Ms. Porter (for herself, Ms. Bonamici, Mr. Sarbanes, and Mrs. Hayes) 
 introduced the following bill; which was referred to the Committee on 
   Education and the Workforce, and in addition to the Committees on 
Financial Services, and Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide a framework for the Bureau of Consumer Financial Protection 
 and the Department of Education to coordinate in providing assistance 
to and serving borrowers seeking to resolve complaints related to their 
  private education or Federal student loans, and for other purposes.

    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 ``CFPB Student Loan Integrity and 
Transparency Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency'' means the Bureau or the 
        Department, as applicable, and the term ``agencies'' means both 
        the Bureau and the Department.
            (2) Bureau.--The term ``Bureau'' means the Bureau of 
        Consumer Financial Protection.
            (3) Complaint.--The term ``complaint'' means a comment, 
        inquiry, or request for assistance from a student loan 
        borrower.
            (4) Department.--The term ``Department'' means the 
        Department of Education.
            (5) Director.--The term ``Director'' means the Director of 
        the Bureau.
            (6) Federal consumer financial law.--The term ``Federal 
        consumer financial law'' has the meaning given that term under 
        section 1002 of the Consumer Financial Protection Act of 2010 
        (12 U.S.C. 5481).
            (7) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term under section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (8) Nonpublic information.--The term ``nonpublic 
        information'' means--
                    (A) confidential information, as such term is 
                defined under section 1070.2 of title 12, Code of 
                Federal Regulations;
                    (B) any information collected by the Department 
                from persons engaged in student financial services 
                activities pursuant to the Department's oversight and 
                other authorities that is not publicly available; and
                    (C) the name, address, or other personally 
                identifiable information relating to any consumer, 
                including any information so designated by a provider 
                of information.
            (9) Private education loan.--The term ``private education 
        loan'' has the meaning given that term under section 140(a) of 
        the Truth in Lending Act (15 U.S.C. 1650(a)).
            (10) Provider.--With respect to information shared between 
        the agencies, the term ``provider'' means the agency providing 
        the information to the other agency.
            (11) Receiver.--With respect to information shared between 
        the agencies, the term ``receiver'' means the agency receiving 
        the information from the other agency.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (13) Student financial services.--The term ``student 
        financial services'' means consumer financial products or 
        services (as defined under section 1002 of the Consumer 
        Financial Protection Act of 2010 (12 U.S.C. 5481)) that are 
        related to students of institutions of higher education, 
        including student loan origination and student loan servicing.
            (14) Title iv loans.--The term ``title IV loans'' means 
        loans made, insured, or guaranteed under title IV of the Higher 
        Education Act of 1965.

SEC. 3. COOPERATION BETWEEN THE BUREAU AND THE DEPARTMENT.

    (a) In General.--The Director and the Secretary shall--
            (1) establish points of contact between the Bureau and the 
        Department with respect to Bureau supervision and Department 
        oversight matters that are of common jurisdiction to both the 
        Bureau and the Department;
            (2) share with each other the Bureau's schedule of 
        examinations and the Department's schedule of reviews of 
        persons engaged in offering or providing student financial 
        services that are subject to the Bureau's supervisory authority 
        and the Department's oversight authority;
            (3) coordinate the Bureau's supervision activities and the 
        Department's oversight activities to promote the efficient use 
        of resources;
            (4) meet at least quarterly to discuss observations about 
        the nature of complaints received by the Bureau and the 
        Department, characteristics of borrowers, and available 
        information about resolution of complaints, as well as analysis 
        and recommendations; and
            (5) work to ensure the Bureau and the Department understand 
        the respective reporting categories and definitions of each 
        agency and how such categories and definition relate to each 
        other for comparison.
    (b) Sharing of Information.--
            (1) Bureau access to department databases.--For the purpose 
        of the Bureau's congressional reporting, research, market 
        analysis, complaint resolution, enforcement, supervision, 
        financial education, engagement, and rulemaking needs, the 
        Secretary shall work with the Bureau to provide the Bureau with 
        access to Department databases, as applicable.
            (2) Consumer complaints.--
                    (A) Bureau access to department consumer 
                complaints.--The Director may request and obtain 
                information from the Secretary concerning consumer 
                complaints and other information pertaining to specific 
                entities or classes of entities that are relevant to 
                the exercise of the Bureau's supervisory, enforcement, 
                or regulatory functions.
                    (B) Sharing of student loan borrower complaints.--
                            (i) In general.--The Director and the 
                        Secretary shall transfer each complaint 
                        received by their agency from student loan 
                        borrowers to the other agency.
                            (ii) Deadline for sharing certain 
                        complaints.--With respect to a complaint 
                        received by the Bureau related to the 
                        origination, disbursement, or servicing of a 
                        title IV loan or a complaint received by the 
                        Department related to a private education loan, 
                        the applicable agency shall direct the 
                        complaint to the other agency within 10 days of 
                        receipt of the complaint.
                    (C) Addressing complaints related to defaulted 
                title iv loans.--The Director and the Secretary shall 
                establish an efficient collaborative process to address 
                complaints received by the Bureau about private 
                collection agency actions related to defaulted title IV 
                loans.
                    (D) Standards for the format and sharing of 
                complaint data.--
                            (i) Format.--In providing complaint data 
                        described under this paragraph, the Director 
                        and the Secretary shall provide the complaint 
                        data in a secure, digital format.
                            (ii) Process.--The Director and the 
                        Secretary shall establish an efficient, secure, 
                        and legally compliant process to provide 
                        complaint data.
            (3) Certain tax return information.--Section 6103(l)(13)(D) 
        of the Internal Revenue Code of 1986 is amended by adding at 
        the end the following:
                            ``(vii) Redisclosure to the bureau of 
                        consumer financial protection.--Authorized 
                        persons may redisclose return information 
                        received under subparagraph (C) to the Director 
                        of the Bureau of Consumer Financial Protection 
                        to the extent necessary to carry out the 
                        oversight activities of the Bureau of Consumer 
                        Financial Protection.''.
            (4) Other information.--In addition to the information 
        permitted to be shared under this section, the Director and the 
        Secretary may share any other information with each other as 
        the Director and the Secretary determine appropriate.
            (5) Amendment to title 5.--Section 552a(b) of title 5, 
        United States Code, is amended--
                    (A) in paragraph (11), by striking ``or'' at the 
                end;
                    (B) in paragraph (12), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(13) a disclosure between the Secretary of Education and 
        the Director of the Bureau of Consumer Financial Protection 
        authorized under the CFPB Student Loan Integrity and 
        Transparency Act.''.
            (6) Data privacy.--
                    (A) Memorandum of understanding.--The Director and 
                the Secretary shall enter into one or more memoranda of 
                understanding to address data privacy issues related to 
                information shared between the Bureau and the 
                Department pursuant to this Act.
                    (B) Safeguarding nonpublic information.--The 
                Director and the Secretary shall establish and maintain 
                such safeguards as are necessary and appropriate to 
                protect the confidentiality of any nonpublic 
                information received by their agency pursuant to this 
                Act (as well as any derived information), including--
                            (i) restricting access to the nonpublic 
                        information to only those of officers, 
                        employees, and contractors who have a need for 
                        such information to carry out the receiver's 
                        responsibilities under applicable law;
                            (ii) informing those persons who are 
                        provided access to the nonpublic information of 
                        their responsibilities under this Act; and
                            (iii) ensuring that the nonpublic 
                        information is protected in accordance with the 
                        standards applicable to Federal agencies for 
                        protection of the privacy and confidentiality 
                        of personally identifiable information and for 
                        data security and integrity.
    (c) Handling of Complaints by the Bureau.--The Director shall--
            (1) accept complaints related to private education loans 
        and the servicing of title IV loans; and
            (2) process such complaints, including, where appropriate, 
        providing the complaints to the applicable servicer and 
        providing any response from the servicer to the borrower, in 
        accordance with section 1034 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5534).
    (d) Title IV Loan Servicer Requirement.--The Secretary may not 
enter into an agreement with a contractor or vendor for the servicing 
of title IV loans unless the contractor or vendor, as part of that 
agreement, agrees to provide the Bureau, upon request, any information 
that the contractor or vendor is required to provide the Department.
    (e) Responsibilities of the Agencies by Type of Complaint.--
            (1) Complaints regarding the title iv loan programs.--With 
        respect to complaints regarding the title IV loan programs, the 
        Department is responsible for--
                    (A) program issue resolution;
                    (B) attempting to resolve such complaints; and
                    (C) as appropriate, discussing such complaints with 
                the Bureau regarding the impact, if any, on Federal 
                consumer financial law.
            (2) Complaints regarding title iv loans with federal 
        consumer financial law issues.--
                    (A) In general.--With respect to complaints 
                regarding title IV loans with Federal consumer 
                financial law issues--
                            (i) the Department shall collaborate with 
                        the Bureau;
                            (ii) the Bureau is responsible for 
                        providing the Department with expertise, 
                        analysis, and recommendations regarding 
                        resolution consistent with Federal consumer 
                        financial law; and
                            (iii) the Department is responsible for 
                        attempting to resolve informally such 
                        complaints, in accordance with section 
                        141(f)(3)(A) of the Higher Education Act of 
                        1965 (20 U.S.C. 1018(f)(3)(A)), with the 
                        Bureau's input.
                    (B) Interagency process to discuss, track, and 
                resolve complaints.--The Director and the Secretary 
                shall determine an efficient process to--
                            (i) discuss and track complaints related to 
                        both a title IV loan and a private education 
                        loan; and
                            (ii) collaborate, where possible, to 
                        attempt to resolve such complaints, including 
                        through the use of the ombudsmen established 
                        under section 1035 of the Consumer Financial 
                        Protection Act of 2010 (12 U.S.C. 5535) and 
                        section 141(f) of the Higher Education Act of 
                        1965 (20 U.S.C. 1018(f)).
            (3) Complaints regarding private education loans with 
        federal consumer financial law issues.--With respect to 
        complaints regarding private education loans, the Bureau is 
        responsible for--
                    (A) attempting to resolve informally such 
                complaints, in accordance with section 1035(c)(1) of 
                the Consumer Financial Protection Act of 2010 (12 
                U.S.C. 5535(c)(1)); and
                    (B) as appropriate, discussing issues with the 
                Department regarding products offered by institutions 
                of higher education or to students or prospective 
                students, or other issues that may impact Federal 
                programs overseen by the Department.
    (f) Payment of Costs.--
            (1) In general.--The Bureau and the Department shall each 
        bear its own costs of complying with this Act.
            (2) Interagency agreement for transfer of funds.--If funds 
        are transferred between the Bureau and the Department for the 
        provision of goods or services authorized by this Act, 
        including access to Department databases described under 
        subsection (b)(1), such transfer shall be accomplished by a 
        separate interagency agreement.
    (g) Rules of Construction.--
            (1) Nothing in this Act may be construed to limit the 
        existing authorities of the Bureau or the Department.
            (2) Nothing in this Act may be construed to prohibit the 
        Bureau or the Department from entering into memoranda of 
        understanding to establish additional policies and procedures 
        related to the requirements of this Act.
            (3) Nothing in this Act may be construed to prevent an 
        agency from complying with a legally valid or enforceable order 
        of a court of competent jurisdiction, or, if compliance is 
        compulsory, with a request or demand from a duly authorized 
        committee of the United States Senate or House of 
        Representatives.
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