[Congressional Record Volume 161, Number 48 (Monday, March 23, 2015)]
[Senate]
[Pages S1710-S1717]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
S. 833. A bill to authorize the Secretary of Veterans Affairs to
carry out certain major medical facility projects for which
appropriations were made for fiscal year 2015, and for other purposes;
to the Committee on Veterans' Affairs.
Mrs. FEINSTEIN. Mr. President, I speak today regarding the
introduction of a bill, cosponsored by Senator Boxer, to provide the
Department of Veterans Affairs with the authority to obligate and
expend previously appropriated funds in order to begin construction on
critical projects in Los Angeles, Long Beach, and San Diego, CA, as
well as in Canandaigua, NY.
In December of 2014, Congress passed the Consolidated and Continuing
Appropriations Act of 2015, which provided $446,800,000 for major
construction projects at these Veterans Affairs Medical Centers.
However, the Department of Veterans Affairs cannot spend the money that
has already been appropriated and begin construction on these projects
because it lacks a separate authorization, which is required by law.
The funding provided for the three California projects will be used
to make critical, time-sensitive seismic safety corrections to
structures in West Los Angeles, Long Beach, and San Diego. These
buildings, which include a spinal cord injury clinic, a mental health
care facility, and a community living center, are at exceptionally high
risk of collapse or suffering severe damage during an earthquake. If a
major earthquake struck in proximity to one of these Medical Centers
while it was in use by veterans and the Department's employees, there
could be numerous injuries and deaths. The U.S. Geological Survey
estimates there is a greater than 99 percent chance that a magnitude
6.7 or greater earthquake will strike California in the next 30 years.
It is important to note that even less severe earthquakes can cause
damage to seismically unsafe buildings that result in injuries and
deaths. The California Governor's Office of Emergency Services believes
that the damage to seismically unfit buildings caused by the magnitude
6.0 earthquake that hit Napa, CA, on August 24, 2014 at 3:20 a.m. would
likely have resulted in many more deaths and injuries if it had struck
during business hours when these structures were in use. As it was, the
earthquake caused over 200 injuries and one fatality. In fact, the U.S.
Geological Survey estimates that a 6.0 magnitude earthquake hits
California every 1.2 years on average. This is a terrifying figure, and
it is why I strongly believe that Congress must enact this legislation
without delay.
I appreciate that the Senate Veterans' Affairs Committee worked
extremely hard to pass important legislation last year to address the
veterans' health care access crisis and that it, therefore, did not
report a construction authorization bill. However, in the case of these
four projects, the money has already been appropriated and is available
for expenditure as soon as an authorization is forthcoming from
Congress.
More hearings and delays are unnecessary to determine whether the
Senate should pass this legislation. The Senate Appropriations
Committee held hearings with the Department on these projects in 2014
as it reviewed the President's fiscal year 2015 Budget Request. The
Committee marked up and reported the Military Construction, Veterans
Affairs, and Related Agencies appropriations bill in a bipartisan
fashion. Congress voted in a bipartisan fashion to pass this bill and
approve funding for these projects as part of the Consolidated and
Continuing Appropriations Act of 2015.
I want to reiterate that Congress appropriated funding for these four
major medical projects in 2014, and the Department is ready to start
construction today. However, due only to the lack of a separate
authorization, the Department cannot start this vital work to protect
our veterans and Federal employees. This is exactly why Americans
believe that the Federal Government does not work. How does Congress
explain this unnecessary delay to veterans who go to medical
appointments in the buildings at risk of collapse or major damage?
There is no reason to delay authorizing these projects when the money
has already been appropriated.
I urge my colleagues to join me in quickly approving this legislation
so that the Department can begin modification of buildings that
currently leave veterans and the Department's employees in harm's way
before the next earthquake strikes California. Congress must act before
the next earthquake strikes.
______
By Mr. DURBIN (for himself, Mrs. Boxer, Mr. Merkley, Mr.
Blumenthal, and Mr. Whitehouse):
S. 838. A bill to amend the Truth in Lending Act to establish a
national usury rate for consumer credit transactions; to the Committee
on Banking, Housing, and Urban Affairs.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 838
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 ``Protecting Consumers from
Unreasonable Credit Rates Act of 2015''.
SEC. 2. FINDINGS.
Congress finds that--
(1) attempts have been made to prohibit usurious interest
rates in America since colonial times;
[[Page S1711]]
(2) at the Federal level, in 2006, Congress enacted a
Federal 36 percent annualized usury cap for servicemembers
and their families for covered credit products, as defined by
the Department of Defense, which curbed payday, car title,
and tax refund lending around military bases;
(3) notwithstanding such attempts to curb predatory
lending, high-cost lending persists in all 50 States due to
loopholes in State laws, safe harbor laws for specific forms
of credit, and the exportation of unregulated interest rates
permitted by preemption;
(4) due to the lack of a comprehensive Federal usury cap,
consumers annually pay approximately $17,000,000,000 for
high-cost overdraft loans, as much as $7,000,000,000 for
storefront and online payday loans, and additional amounts in
unreported revenues from bank direct deposit advance loans
and high-cost online installment loans;
(5) cash-strapped consumers pay on average 400 percent
annual interest for payday loans, 300 percent annual interest
for car title loans, up to 3,500 percent for bank overdraft
loans, and triple-digit rates for online installment loans;
(6) a national maximum interest rate that includes all
forms of fees and closes all loopholes is necessary to
eliminate such predatory lending; and
(7) alternatives to predatory lending that encourage small
dollar loans with minimal or no fees, installment payment
schedules, and affordable repayment periods should be
encouraged.
SEC. 3. NATIONAL MAXIMUM INTEREST RATE.
Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended by adding at the end the following:
``SEC. 140B. MAXIMUM RATES OF INTEREST.
``(a) In General.--Notwithstanding any other provision of
law, no creditor may make an extension of credit to a
consumer with respect to which the fee and interest rate, as
defined in subsection (b), exceeds 36 percent.
``(b) Fee and Interest Rate Defined.--
``(1) In general.--For purposes of this section, the fee
and interest rate includes all charges payable, directly or
indirectly, incident to, ancillary to, or as a condition of
the extension of credit, including--
``(A) any payment compensating a creditor or prospective
creditor for--
``(i) an extension of credit or making available a line of
credit, such as fees connected with credit extension or
availability such as numerical periodic rates, annual fees,
cash advance fees, and membership fees; or
``(ii) any fees for default or breach by a borrower of a
condition upon which credit was extended, such as late fees,
creditor-imposed not sufficient funds fees charged when a
borrower tenders payment on a debt with a check drawn on
insufficient funds, overdraft fees, and over limit fees;
``(B) all fees which constitute a finance charge, as
defined by rules of the Bureau in accordance with this title;
``(C) credit insurance premiums, whether optional or
required; and
``(D) all charges and costs for ancillary products sold in
connection with or incidental to the credit transaction.
``(2) Tolerances.--
``(A) In general.--With respect to a credit obligation that
is payable in at least 3 fully amortizing installments over
at least 90 days, the term `fee and interest rate' does not
include--
``(i) application or participation fees that in total do
not exceed the greater of $30 or, if there is a limit to the
credit line, 5 percent of the credit limit, up to $120, if--
``(I) such fees are excludable from the finance charge
pursuant to section 106 and regulations issued thereunder;
``(II) such fees cover all credit extended or renewed by
the creditor for 12 months; and
``(III) the minimum amount of credit extended or available
on a credit line is equal to $300 or more;
``(ii) a late fee charged as authorized by State law and by
the agreement that does not exceed either $20 per late
payment or $20 per month; or
``(iii) a creditor-imposed not sufficient funds fee charged
when a borrower tenders payment on a debt with a check drawn
on insufficient funds that does not exceed $15.
``(B) Adjustments for inflation.--The Bureau may adjust the
amounts of the tolerances established under this paragraph
for inflation over time, consistent with the primary goals of
protecting consumers and ensuring that the 36 percent fee and
interest rate limitation is not circumvented.
``(c) Calculations.--
``(1) Open end credit plans.--For an open end credit plan--
``(A) the fee and interest rate shall be calculated each
month, based upon the sum of all fees and finance charges
described in subsection (b) charged by the creditor during
the preceding 1-year period, divided by the average daily
balance; and
``(B) if the credit account has been open less than 1 year,
the fee and interest rate shall be calculated based upon the
total of all fees and finance charges described in subsection
(b)(1) charged by the creditor since the plan was opened,
divided by the average daily balance, and multiplied by the
quotient of 12 divided by the number of full months that the
credit plan has been in existence.
``(2) Other credit plans.--For purposes of this section, in
calculating the fee and interest rate, the Bureau shall
require the method of calculation of annual percentage rate
specified in section 107(a)(1), except that the amount
referred to in that section 107(a)(1) as the `finance charge'
shall include all fees, charges, and payments described in
subsection (b)(1) of this section.
``(3) Adjustments authorized.--The Bureau may make
adjustments to the calculations in paragraphs (1) and (2),
but the primary goals of such adjustment shall be to protect
consumers and to ensure that the 36 percent fee and interest
rate limitation is not circumvented.
``(d) Definition of Creditor.--As used in this section, the
term `creditor' has the same meaning as in section 702(e) of
the Equal Credit Opportunity Act (15 U.S.C. 1691a(e)).
``(e) No Exemptions Permitted.--The exemption authority of
the Bureau under section 105 shall not apply to the rates
established under this section or the disclosure requirements
under section 127(b)(6).
``(f) Disclosure of Fee and Interest Rate for Credit Other
Than Open End Credit Plans.--In addition to the disclosure
requirements under section 127(b)(6), the Bureau may
prescribe regulations requiring disclosure of the fee and
interest rate established under this section.
``(g) Relation to State Law.--Nothing in this section may
be construed to preempt any provision of State law that
provides greater protection to consumers than is provided in
this section.
``(h) Civil Liability and Enforcement.--In addition to
remedies available to the consumer under section 130(a), any
payment compensating a creditor or prospective creditor, to
the extent that such payment is a transaction made in
violation of this section, shall be null and void, and not
enforceable by any party in any court or alternative dispute
resolution forum, and the creditor or any subsequent holder
of the obligation shall promptly return to the consumer any
principal, interest, charges, and fees, and any security
interest associated with such transaction. Notwithstanding
any statute of limitations or repose, a violation of this
section may be raised as a matter of defense by recoupment or
setoff to an action to collect such debt or repossess related
security at any time.
``(i) Violations.--Any person that violates this section,
or seeks to enforce an agreement made in violation of this
section, shall be subject to, for each such violation, 1 year
in prison and a fine in an amount equal to the greater of--
``(1) 3 times the amount of the total accrued debt
associated with the subject transaction; or
``(2) $50,000.
``(j) State Attorneys General.--An action to enforce this
section may be brought by the appropriate State attorney
general in any United States district court or any other
court of competent jurisdiction within 3 years from the date
of the violation, and such attorney general may obtain
injunctive relief.''.
SEC. 4. DISCLOSURE OF FEE AND INTEREST RATE FOR OPEN END
CREDIT PLANS.
Section 127(b)(6) of the Truth in Lending Act (15 U.S.C.
1637(b)(6)) is amended by striking ``the total finance charge
expressed'' and all that follows through the end of the
paragraph and inserting ``the fee and interest rate,
displayed as `FAIR', established under section 141.''.
______
By Ms. COLLINS (for herself and Ms. Cantwell):
S. 839. A bill to amend title XVIII of the Social Security Act to
extend the rural add-on payment in the Medicare home health benefit,
and for other purposes; to the Committee on Finance.
Ms. COLLINS. Mr. President, I rise today with my colleague from
Washington to introduce the Preserve Access to Rural Home Health
Services Act of 2015 to extend the modest increase in payments for home
health services in rural areas that otherwise will expire on January 1
of next year.
Home health has become an increasingly important part of our health
care system. The kinds of highly skilled--and often technically
complex--services that our Nation's home health caregivers provide have
enabled millions of our most frail and vulnerable older and disabled
citizens to avoid hospitals and nursing homes and stay just where they
want to be--in the comfort, privacy, and security of their own homes. I
have accompanied several of Maine's caring home health nurses on their
visits to patients and have seen first hand the difference that they
are making for patients and their families.
Surveys have shown that the delivery of home health services in rural
areas can be as much as 12 to 15 percent more costly because of the
extra travel time required to cover long distances between patients,
higher transportation expenses, and other factors. Because of the
longer travel times, rural caregivers are unable to make as many visits
in a day as their urban counterparts. For example, home health care
agencies in Aroostook County in Northern Maine, where I am from, cover
almost 6,700 square miles, with an average population of less than 11
[[Page S1712]]
persons per square mile. These agencies' costs are understandably much
higher than other agencies located in more urban areas due to the long
distances the staff must drive to see clients. Moreover, the staff is
not able to see as many patients due to time on the road.
Agencies serving rural areas are also frequently smaller than their
urban counterparts, which means that their relative costs are higher.
Smaller agencies with fewer patients and fewer visits mean that fixed
costs, particularly those associated with meeting regulatory
requirements, are spread over a much smaller number of patients and
visits, increasing overall per-patient and per-visit costs.
Moreover, in many rural areas, home health agencies are the primary
caregivers for homebound beneficiaries with limited access to
transportation. These rural patients often require more time and care
than their urban counterparts and are understandably more expensive for
agencies to serve. If the extra three per cent rural payment is not
extended, agencies may be forced to make decisions not to accept rural
patients with greater care needs. That could translate into less access
to health care for ill, homebound seniors. The result would likely be
that these seniors would be hospitalized more frequently and would have
to seek care in nursing homes, adding considerable cost to the system.
Failure to extend the rural add-on payment would only put more
pressure on rural home health agencies that are already operating on
very narrow margins and could force some of the agencies to close their
doors altogether. If any of these agencies were forced to close, the
Medicare patients in that region could lose all of their access to home
care.
The legislation we are introducing today will extend the rural add-on
for 5 years and help to ensure that Medicare patients in rural areas
continue to have access to the home health services they need.
Moreover, we would offset costs of the bill by reducing the home health
outlier fund by .25 percent over the same 5 years. I urge our
colleagues to join us as cosponsors.
______
By Mr. DURBIN (for himself, Mr. Reed, and Ms. Warren):
S. 840. A bill to require certain protections for student loan
borrowers, and for other purposes; to the Committee on Health,
Education, Labor, and Pensions.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 840
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 Borrower Bill
of Rights''.
SEC. 2. TRUTH IN LENDING ACT AMENDMENTS.
The Truth in Lending Act (15 U.S.C. 1601 et seq.) is
amended--
(1) in section 128 (15 U.S.C. 1638)--
(A) in subsection (e)--
(i) in the subsection heading, by striking ``Private'';
(ii) in paragraph (1)(O), by striking ``paragraph (6)'' and
inserting ``paragraph (9)'';
(iii) in paragraph (2)(L), by striking ``paragraph (6)''
and inserting ``paragraph (9)'';
(iv) in paragraph (4)(C), by striking ``paragraph (7)'' and
inserting ``paragraph (10)'';
(v) by redesignating paragraphs (5) through (11) as
paragraphs (8) through (14), respectively;
(vi) by inserting after paragraph (4) the following:
``(5) Disclosures before first fully amortized payment.--
Not fewer than 30 days and not more than 150 days before the
first fully amortized payment on a postsecondary education
loan is due from the borrower, the postsecondary educational
lender shall disclose to the borrower, clearly and
conspicuously--
``(A) the information described in--
``(i) paragraph (2)(A) (adjusted, as necessary, for the
rate of interest in effect on the date the first fully
amortized payment on a postsecondary education loan is due);
``(ii) subparagraphs (B) through (G) of paragraph (2);
``(iii) paragraph (2)(H) (adjusted, as necessary, for the
rate of interest in effect on the date the first fully
amortized payment on a postsecondary education loan is due);
``(iv) paragraph (2)(K); and
``(v) subparagraphs (O) and (P) of paragraph (2);
``(B) the scheduled date upon which the first fully
amortized payment is due;
``(C) the name of the lender and servicer, and the address
to which communications and payments should be sent including
a telephone number and website where the borrower may obtain
additional information;
``(D) a description of alternative repayment plans,
including loan consolidation or refinancing, and
servicemember or veteran benefits under the Servicemembers
Civil Relief Act (50 U.S.C. App. 501 et seq.) or other
Federal or State law related to postsecondary education
loans; and
``(E) a statement that a Servicemember and Veterans Liaison
designated under paragraph (15)(I) is available to answer
inquiries about servicemember and veteran benefits related to
postsecondary education loans, including the toll-free
telephone number to contact the Liaison pursuant to paragraph
(15)(I).
``(6) Disclosures when borrower is 30 days delinquent.--Not
fewer than 5 days after a borrower becomes 30 days delinquent
on a postsecondary education loan, the postsecondary
educational lender shall disclose to the borrower, clearly
and conspicuously--
``(A) the date on which the loan will be charged-off (as
defined in paragraph (15)(A)) or assigned to collections,
including the consequences of such charge-off or assignment
to collections, if no payment is made;
``(B) the minimum payment that the borrower must make to
avoid the loan being charged off (as defined in paragraph
(15)(A)) or assigned to collection, and the minimum payment
that the borrower must make to bring the loan current;
``(C) a statement informing the borrower that a payment of
less than the minimum payment described in subparagraph (B)
could result in the loan being charged off (as defined in
paragraph (15)(A)) or assigned to collection; and
``(D) a statement that a Servicemember and Veterans Liaison
designated under paragraph (15)(I) is available to answer
inquiries about servicemember and veteran benefits related to
postsecondary education loans, including the toll-free
telephone number to contact the Liaison pursuant to paragraph
(15)(I).
``(7) Disclosures when borrower is having difficulty making
payment or is 60 days delinquent.--
``(A) In general.--Not fewer than 5 days after a borrower
notifies a postsecondary educational lender that the borrower
is having difficulty making payment or a borrower becomes 60
days delinquent on a postsecondary education loan, the
postsecondary educational lender shall--
``(i) complete a full review of the borrower's
postsecondary education loan and make a reasonable effort to
obtain the information necessary to determine--
``(I) if the borrower is eligible for an alternative
repayment plan, including loan consolidation or refinancing;
and
``(II) if the borrower is eligible for servicemember or
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) or other Federal or State law
related to postsecondary education loans;
``(ii) provide the borrower, in writing, in simple and
understandable terms, information about alternative repayment
plans and benefits for which the borrower is eligible,
including all terms, conditions, and fees or costs associated
with such repayment plan, pursuant to paragraph (8)(D);
``(iii) allow the borrower not less than 30 days to apply
for an alternative repayment plan or benefits, if eligible;
and
``(iv) notify the borrower that a Servicemember and
Veterans Liaison designated under paragraph (15)(I) is
available to answer inquiries about servicemember and veteran
benefits related to postsecondary education loans, including
the toll-free telephone number to contact the Liaison
pursuant to paragraph (15)(I).
``(B) Forbearance or deferment.--If a borrower notifies the
postsecondary educational lender that a long-term alternative
repayment plan is not appropriate, the postsecondary
educational lender may comply with this paragraph by
providing the borrower, in writing, in simple and
understandable terms, information about short-term options to
address an anticipated short-term difficulty in making
payments, such as forbearance or deferment options, including
all terms, conditions, and fees or costs associated with such
options pursuant to paragraph (8)(D).
``(C) Notification process.--
``(i) In general.--Each postsecondary educational lender
shall establish a process, in accordance subparagraph (A),
for a borrower to notify the lender that--
``(I) the borrower is having difficulty making payments on
a postsecondary education loan; and
``(II) a long-term alternative repayment plan is not
needed.
``(ii) Consumer financial protection bureau requirements.--
The Director of the Bureau of Consumer Financial Protection,
in consultation with the Secretary of Education, shall
promulgate rules establishing minimum standards for
postsecondary educational lenders in carrying out the
requirements of this paragraph and a model form for borrowers
to notify postsecondary educational lenders of the
information under this paragraph.'';
(vii) in paragraph (8), as redesignated by clause (v), by
adding at the end the following:
``(D) Model disclosure form for alternative repayment
plans, forbearance, and deferment options.--Not later than 2
years after the date of enactment of the Student
[[Page S1713]]
Loan Borrower Bill of Rights, the Director of the Bureau of
Consumer Financial Protection, in consultation with the
Secretary of Education, shall develop and issue model forms
to allow borrowers to compare alternative repayment plans,
forbearance, and deferment options with the borrower's
existing repayment plan with respect to a postsecondary
education loan. Such forms shall include the following:
``(i) The total amount to be paid over the life of the
loan.
``(ii) The total amount in interest to be paid over the
life of the loan.
``(iii) The monthly payment amount.
``(iv) The expected pay-off date.
``(v) Related fees and costs.
``(vi) Eligibility requirements, and how the borrower can
apply for the alternative repayment plan, forbearance, or
deferment option.
``(vii) Any relevant consequences due to action or
inaction, such as default, including any actions that would
result in the loss of eligibility for alternative repayment
plans, forbearance, or deferment options.'';
(viii) in paragraph (11), as redesignated by clause (v), by
striking ``paragraph (7)'' and inserting ``paragraph (10)'';
(ix) by striking paragraph (13), as redesignated by clause
(v), and inserting the following:
``(13) Definitions.--In this subsection--
``(A) the terms `covered educational institution', `private
educational lender', and `private education loan' have the
same meanings as in section 140; and
``(B) the term `postsecondary education loan' means
``(i) a private education loan; or
``(ii) a loan made, insured, or guaranteed under part B, D,
or E of title IV of the Higher Education Act of 1965 (20
U.S.C. 1071 et seq., 1087a et seq., and 1087aa et seq.).'';
(x) in paragraph (14), as redesignated by clause (v), by
striking ``paragraph (5)'' and inserting ``paragraph (8)'';
and
(xi) by adding at the end the following:
``(15) Student loan borrower bill of rights.--
``(A) Definitions.--In this paragraph:
``(i) Borrower.--The term `borrower' means the person to
whom a postsecondary education loan is extended.
``(ii) Charge off.--The term `charge off' means charge to
profit and loss, or subject to any similar action.
``(iii) Qualified written request.--
``(I) In general.--The term `qualified written request'
means a written correspondence of a borrower (other than
notice on a payment medium supplied by the student loan
servicer) transmitted by mail, facsimile, or electronically
through an email address or website designated by the student
loan servicer to receive communications from borrowers that--
``(aa) includes, or otherwise enables the student loan
servicer to identify, the name and account of the borrower;
and
``(bb) includes, to the extent applicable--
``(AA) sufficient detail regarding the information sought
by the borrower; or
``(BB) a statement of the reasons for the belief of the
borrower that there is an error regarding the account of the
borrower.
``(II) Correspondence delivered to other addresses.--
``(aa) In general.--A written correspondence of a borrower
is a qualified written request if the written correspondence
is transmitted to and received by a student loan servicer at
a mailing address, facsimile number, email address, or
website address other than the address or number designated
by that student loan servicer to receive communications from
borrowers but the written correspondence meets the
requirements under items (aa) and (bb) of subclause (I).
``(bb) Duty to transfer.--A student loan servicer shall,
within a reasonable period of time, transfer a written
correspondence of a borrower received by the student loan
servicer at a mailing address, facsimile number, email
address, or website address other than the address or number
designated by that student loan servicer to receive
communications from borrowers to the correct address or
appropriate office or other unit of the student loan
servicer.
``(cc) Date of receipt.--A written correspondence of a
borrower transferred in accordance with item (bb) shall be
deemed to be received by the student loan servicer on the
date on which the written correspondence is transferred to
the correct address or appropriate office or other unit of
the student loan servicer.
``(iv) Servicer.--The term `servicer' means the person
responsible for the servicing of a postsecondary education
loan, including any agent of such person or the person who
makes, owns, or holds a loan if such person also services the
loan.
``(v) Servicing.--The term `servicing' means--
``(I) receiving any scheduled periodic payments from a
borrower pursuant to the terms of a postsecondary education
loan;
``(II) making the payments of principal and interest and
such other payments with respect to the amounts received from
the borrower, as may be required pursuant to the terms of the
loan; and
``(III) performing other administrative services with
respect to the loan.
``(B) Sale, transfer, or assignment.--If the sale, other
transfer, assignment, or transfer of servicing obligations of
a postsecondary education loan results in a change in the
identity of the party to whom the borrower must send
subsequent payments or direct any communications concerning
the loan--
``(i) the transferor shall--
``(I) notify the borrower, in writing, in simple and
understandable terms, not fewer than 45 days before
transferring a legally enforceable right to receive payment
from the borrower on such loan, of--
``(aa) the sale or other transfer, assignment, or transfer
of servicing obligations;
``(bb) the identity of the transferee;
``(cc) the name and address of the party to whom subsequent
payments or communications must be sent;
``(dd) the telephone numbers and websites of both the
transferor and the transferee;
``(ee) the effective date of the sale, transfer, or
assignment;
``(ff) the date on which the transferor will stop accepting
payment; and
``(gg) the date on which the transferee will begin
accepting payment; and
``(II) forward any payment from a borrower with respect to
such postsecondary education loan to the transferee,
immediately upon receiving such payment, during the 60-day
period beginning on the date on which the transferor stops
accepting payment of such postsecondary education loan; and
``(ii) the transferee shall--
``(I) notify the borrower, in writing, in simple and
understandable terms, not fewer than 45 days before acquiring
a legally enforceable right to receive payment from the
borrower on such loan, of--
``(aa) the sale or other transfer, assignment, or transfer
of servicing obligations;
``(bb) the identity of the transferor:
``(cc) the name and address of the party to whom subsequent
payments or communications must be sent;
``(dd) the telephone numbers and websites of both the
transferor and the transferee;
``(ee) the effective date of the sale, transfer,
assignment, or transfer of servicing obligations;
``(ff) the date on which the transferor will stop accepting
payment; and
``(gg) the date on which the transferee will begin
accepting payment;
``(II) accept as on-time and may not impose any late fee or
finance charge for any payment from a borrower with respect
to such postsecondary education loan that is forwarded from
the transferor during the 60-day period beginning on the date
on which the transferor stops accepting payment, if the
transferor receives such payment on or before the applicable
due date, including any grace period;
``(III) provide borrowers a simple, online process for
transferring existing electronic fund transfer authority; and
``(IV) honor any promotion or benefit offered to the
borrower or advertised by the previous owner or transferor of
such postsecondary education loan.
``(C) Material change in mailing address or procedure for
handling payments.--If a servicer makes a change in the
mailing address, office, or procedures for handling payments
with respect to any postsecondary education loan, and such
change causes a delay in the crediting of the account of the
borrower made during the 60-day period following the date on
which such change took effect, the servicer may not impose
any late fee or finance charge for a late payment on such
postsecondary education loan.
``(D) Application of payments.--
``(i) In general.--Unless otherwise directed by the
borrower of a postsecondary education loan, upon receipt of a
payment, the servicer shall apply amounts first to the
interest and fees owed on the payment due date, and then to
the principal balance of the postsecondary education loan
bearing the highest annual percentage rate, and then to each
successive interest and fees and then principal balance
bearing the next highest annual percentage rate, until the
payment is exhausted. A borrower may instruct or expressly
authorize the servicer to apply payments in a different
manner.
``(ii) Application of excess amounts.--Unless otherwise
directed by the borrower of a postsecondary education loan,
upon receipt of a payment, the servicer shall apply amounts
in excess of the minimum payment amount first to the interest
and fees owed on the payment due date, and then to the
principal balance of the postsecondary education loan balance
bearing the highest annual percentage rate, and then to each
successive interest and fees and principal balance bearing
the next highest annual percentage rate, until the payment is
exhausted. A borrower may instruct or expressly authorize the
servicer to apply such excess payments in a different manner.
A borrower may also voluntarily increase the periodic payment
amount, including by increasing their recurring electronic
payment, with the right to return to their original
amortization schedule at any time. Servicers shall provide a
simple, online method to allow borrowers to make voluntary
one-time additional payments, voluntarily increase the amount
of their periodic payment, and return to their original
amortization schedule.
``(iii) Apply payment on date received.--Unless otherwise
directed by the borrower of a postsecondary education loan, a
servicer shall apply payments to a borrower's account on the
date the payment is received.
``(iv) Promulgation of rules.--The Director of the Bureau
of Consumer Financial Protection, in consultation with the
Secretary of Education, may promulgate rules for the
application of postsecondary education loan payments that--
[[Page S1714]]
``(I) implements the requirements in this section;
``(II) minimizes the amount of fees and interest incurred
by the borrower and the total loan amount paid by the
borrower;
``(III) minimizes delinquencies, assignments to collection,
and charge-offs;
``(IV) requires servicers to apply payments on the date
received; and
``(V) allows the borrower to instruct the servicer to apply
payments in a manner preferred by the borrower, including
excess payments.
``(v) Method that best benefits borrower.--In promulgating
the rules under clause (iv), the Director of the Bureau of
Consumer Financial Protection shall choose the application
method that best benefits the borrower and is compatible with
existing repayment options.
``(E) Late fees.--
``(i) In general.--A late fee may not be charged to a
borrower for a postsecondary education loan under any of the
following circumstances, either individually or in
combination:
``(I) On a per-loan basis when a borrower has multiple
postsecondary education loans in a billing group.
``(II) In an amount greater than 4 percent of the amount of
the payment past due.
``(III) Before the end of the 15-day period beginning on
the date the payment is due.
``(IV) More than once with respect to a single late
payment.
``(V) The borrower fails to make a singular, non-successive
regularly-scheduled payment on the postsecondary education
loan.
``(ii) Coordination with subsequent late fees.--No late fee
may be charged to a borrower for a postsecondary education
loan relating to an insufficient payment if the payment is
made on or before the due date of the payment, or within any
applicable grace period for the payment, if the insufficiency
is attributable only to a late fee relating to an earlier
payment, and the payment is otherwise a full payment for the
applicable period.
``(F) Rehabilitation of loans.--If a borrower of a private
education loan successfully and voluntarily makes 9 payments
within 20 days of the due date during 10 consecutive months
of amounts owed on the private education loan, or otherwise
brings the private education loan current after the loan is
charged-off, the loan shall be considered rehabilitated, and
the lender or servicer shall request that any consumer
reporting agency to which the charge-off was reported remove
the delinquency that led to the charge-off and the charge-off
from the borrower's credit history.
``(G) Borrower inquiries.--
``(i) Duty of student loan servicers to respond to borrower
inquiries.--
``(I) Notice of receipt of request.--If a borrower of a
postsecondary education loan submits a qualified written
request to the student loan servicer for information relating
to the student loan servicing of the postsecondary education
loan, the student loan servicer shall provide a written
response acknowledging receipt of the qualified written
request within 5 business days unless any action requested by
the borrower is taken within such period.
``(II) Action with respect to inquiry.--Not later than 30
business days after the receipt from a borrower of a
qualified written request under subclause (I) and, if
applicable, before taking any action with respect to the
qualified written request of the borrower, the student loan
servicer shall--
``(aa) make appropriate corrections in the account of the
borrower, including the crediting of any late fees, and
transmit to the borrower a written notification of such
correction (which shall include the name and toll-free or
collect-call telephone number of a representative of the
student loan servicer who can provide assistance to the
borrower);
``(bb) after conducting an investigation, provide the
borrower with a written explanation or clarification that
includes--
``(AA) to the extent applicable, a statement of the reasons
for which the student loan servicer believes the account of
the borrower is correct as determined by the student loan
servicer; and
``(BB) the name and toll-free or collect-call telephone
number of an individual employed by, or the office or
department of, the student loan servicer who can provide
assistance to the borrower; or
``(cc) after conducting an investigation, provide the
borrower with a written explanation or clarification that
includes--
``(AA) information requested by the borrower or explanation
of why the information requested is unavailable or cannot be
obtained by the student loan servicer; and
``(BB) the name and toll-free or collect-call telephone
number of an individual employed by, or the office or
department of, the student loan servicer who can provide
assistance to the borrower.
``(III) Limited extension of response time.--
``(aa) In general.--There may be 1 extension of the 30-day
period described in subclause (II) of not more than 15 days
if, before the end of such 30-day period, the student loan
servicer notifies the borrower of the extension and the
reasons for the delay in responding.
``(bb) Reports to bureau.--Each student loan servicer
shall, on an annual basis, report to the Bureau the aggregate
number of extensions sought by the student loan servicer
under item (aa).
``(ii) Protection of credit information.--During the 60-day
period beginning on the date on which a student loan servicer
receives a qualified written request from a borrower relating
to a dispute regarding payments by the borrower, a student
loan servicer may not provide negative credit information to
any consumer reporting agency (as defined in section 603 of
the Fair Credit Reporting Act (15 U.S.C. 1681a)) relating to
the subject of the qualified written request or to such
period, including any information relating to a late payment
or payment owed by the borrower on the borrower's
postsecondary education loan.
``(H) Single point of contact for certain borrowers.--A
student loan servicer shall designate an office or other unit
of the student loan servicer to act as a point of contact
regarding postsecondary education loans for--
``(i) a borrower who is not less than 60 days delinquent
under the postsecondary education loan;
``(ii) a borrower who seeks information regarding, seeks to
enter an agreement for, or seeks to resolve an issue under a
repayment option that requires subsequent submission of
supporting documentation; and
``(iii) a borrower who seeks to modify the terms of the
repayment of the postsecondary education loan because of
hardship.
``(I) Servicemembers, veterans, and postsecondary education
loans.--
``(i) Servicemember and veterans liaison.--Each servicer
shall designate an employee to act as the servicemember and
veterans liaison who is responsible for answering inquiries
from servicemembers and veterans, and is specially trained on
servicemember and veteran benefits under the Servicemembers
Civil Relief Act (50 U.S.C. App. 501 et seq.) and other
Federal or State laws related to postsecondary education
loans.
``(ii) Toll-free telephone number.--Each servicer shall
maintain a toll-free telephone number that shall--
``(I) connect directly to the servicemember and veterans
liaison designated under clause (i); and
``(II) be made available on the primary internet website of
the servicer and on monthly billing statements.
``(iii) Prohibition on charge offs and default.--A lender
or servicer may not charge off or report a postsecondary
education loan as delinquent, assigned to collection
(internally or by referral to a third party), in default, or
charged-off to a credit reporting agency if the borrower is
on active duty in the Armed Forces (as defined in section
101(d)(1) of title 10, United States Code) serving in a
combat zone (as designated by the President under section
112(c) of the Internal Revenue Code of 1986).
``(iv) Additional liaisons.--The Secretary shall determine
additional entities with whom borrowers interact, including
guaranty agencies, that shall designate an employee to act as
the servicemember and veterans liaison who is responsible for
answering inquiries from servicemembers and veterans and is
specially trained on servicemembers and veteran benefits and
option under the Servicemembers Civil Relief Act (50 U.S.C.
App. 501 et seq.).
``(J) Borrower's loan history.--
``(i) In general.--A servicer shall make available through
a secure website, or in writing upon request, the loan
history of each borrower for each postsecondary education
loan, separately designating--
``(I) payment history;
``(II) loan history, including any forbearances, deferrals,
delinquencies, assignment to collection, and charge offs;
``(III) annual percentage rate history; and
``(IV) key loan terms, including application of payments to
interest, principal, and fees, origination date, principal,
capitalized interest, annual percentage rate, including any
cap, loan term, and any contractual incentives.
``(ii) Original documentation.--A servicer shall make
available to the borrower, if requested, at no charge, copies
of the original loan documents and the promissory note for
each postsecondary education loan.
``(K) Error resolution.--The Director of the Bureau of
Consumer Financial Protection, in consultation with the
Secretary of Education, shall promulgate rules requiring
servicers to establish error resolution procedures to allow
borrowers to inquire about errors related to their
postsecondary education loans and obtain timely resolution of
such errors.
``(L) Additional servicing standards.--The Director of the
Bureau of Consumer Financial Protection, in consultation with
the Secretary of Education, may establish additional
servicing standards to reduce delinquencies, assignment to
collections, defaults, and charge-offs, and to ensure
borrowers understand their rights and obligations related to
their postsecondary education loans.
``(M) Arbitration.--
``(i) Waiver of rights and remedies.--Any rights and
remedies available to borrowers against servicers may not be
waived by any agreement, policy, or form, including by a
predispute arbitration agreement.
``(ii) Predispute arbitration agreements.--No predispute
arbitration agreement shall be valid or enforceable by a
servicer, including as a third-party beneficiary or by
estoppel, if the agreement requires arbitration of a dispute
with respect to a postsecondary education loan. This
subparagraph applies to predispute arbitration agreements
entered into before the date of
[[Page S1715]]
enactment of the Student Loan Borrower Bill of Rights, as
well as on and after such date of enactment, if the violation
that is the subject of the dispute occurred on or after such
date of enactment.
``(N) Enforcement.--The provisions of this paragraph shall
be enforced by the agencies specified in subsections (a)
through (d) of section 108, in the manner set forth in that
section or under any other applicable authorities available
to such agencies by law.
``(O) Preemption.--Nothing in this paragraph may be
construed to preempt any provision of State law regarding
postsecondary education loans where the State law provides
stronger consumer protections.
``(P) Civil liability.--A servicer that fails to comply
with any requirement imposed under this paragraph shall be
deemed a creditor that has failed to comply with a
requirement under this chapter for purposes of liability
under section 130 and such servicer shall be subject to the
liability provisions under such section, including the
provisions under paragraphs (1), (2)(A)(i), (2)(B), and (3)
of section 130(a).
``(Q) Eligibility for discharge.--The Director of the
Bureau of Consumer Financial Protection, in consultation with
the Secretary of Education, shall promulgate rules requiring
lenders and servicers of loans described in paragraph
(13)(B)(ii) to--
``(i) identify and contact borrowers who may be eligible
for student loan discharge by the Secretary;
``(ii) provide the borrower, in writing, in simple and
understandable terms, information about obtaining such
discharge; and
``(iii) create a streamlined process for eligible borrowers
to apply for and receive such discharge.''; and
(B) by adding at the end the following:
``(g) Information To Be Available at No Charge.--The
information required to be disclosed under this section shall
be made available at no charge to the borrower.''; and
(2) in section 130(a)--
(A) in paragraph (3), by striking ``128(e)(7)'' and
inserting ``128(e)(10)''; and
(B) in the flush matter at the end, by striking ``or
paragraph (4)(C), (6), (7), or (8) of section 128(e),'' and
inserting ``or paragraph (4)(C), (9), (10), or (11) of
section 128(e),''.
SEC. 3. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
Section 433 of the Higher Education Act of 1965 (20 U.S.C.
1083) is amended--
(1) in subsection (b)--
(A) in paragraph (12), by striking ``and'' after the
semicolon;
(B) in paragraph (13), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(14) a statement that--
``(A) the borrower may be entitled to servicemember and
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) and other Federal or State laws;
and
``(B) a Servicemember and Veterans Liaison designated under
section 128(e)(15)(I)(i) of the Truth in Lending Act (15
U.S.C. 1638(e)(15)(I)(i)) is available to answer inquiries
about servicemember and veteran benefits, including the toll-
free telephone number to contact the Liaison pursuant to such
section.''; and
(2) in subsection (e)--
(A) in paragraph (2), by adding at the end the following:
``(D) A statement that--
``(i) the borrower may be entitled to servicemember and
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) and other Federal or State laws;
and
``(ii) a Servicemember and Veterans Liaison designated
under section 128(e)(15)(I)(i) of the Truth in Lending Act
(15 U.S.C. 1638(e)(15)(I)(i)) is available to answer
inquiries about servicemember and veteran benefits, including
the toll-free telephone number to contact the Liaison
pursuant to such section.''; and
(B) in paragraph (3), by adding at the end the following:
``(F) A statement that--
``(i) the borrower may be entitled to servicemember and
veteran benefits under the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.) and other Federal or State laws;
and
``(ii) a Servicemember and Veterans Liaison designated
under section 128(e)(15)(I)(i) of the Truth in Lending Act
(15 U.S.C. 1638(e)(15)(I)(i)) is available to answer
inquiries about servicemember and veteran benefits, including
the toll-free telephone number to contact the Liaison
pursuant to such section.''.
SEC. 4. KNOW BEFORE YOU OWE.
(a) Amendments to the Truth in Lending Act.--
(1) In general.--Section 128(e) of the Truth in Lending Act
(15 U.S.C. 1638(e)), as amended by section 2, is further
amended--
(A) by striking paragraph (3) and inserting the following:
``(3) Institutional certification required.--
``(A) In general.--Except as provided in subparagraph (B),
before a creditor may issue any funds with respect to an
extension of credit described in this subsection, the
creditor shall obtain from the relevant institution of higher
education where such loan is to be used for a student, such
institution's certification of--
``(i) the enrollment status of the student;
``(ii) the student's cost of attendance at the institution
as determined by the institution under part F of title IV of
the Higher Education Act of 1965; and
``(iii) the difference between--
``(I) such cost of attendance; and
``(II) the student's estimated financial assistance,
including such assistance received under title IV of the
Higher Education Act of 1965 and other financial assistance
known to the institution, as applicable.
``(B) Exception.--Notwithstanding subparagraph (A), a
creditor may issue funds, not to exceed the amount described
in subparagraph (A)(iii), with respect to an extension of
credit described in this subsection without obtaining from
the relevant institution of higher education such
institution's certification if such institution fails to
provide within 15 business days of the creditor's request for
such certification--
``(i) notification of the institution's refusal to certify
the request; or
``(ii) notification that the institution has received the
request for certification and will need additional time to
comply with the certification request.
``(C) Loans disbursed without certification.--If a creditor
issues funds without obtaining a certification, as described
in subparagraph (B), such creditor shall report the issuance
of such funds in a manner determined by the Director of the
Bureau of Consumer Financial Protection.''; and
(B) by adding at the end the following:
``(16) Provision of information.--
``(A) Provision of information to students.--
``(i) Loan statement.--A creditor that issues any funds
with respect to an extension of credit described in this
subsection shall send loan statements, where such loan is to
be used for a student, to borrowers of such funds not less
than once every 3 months during the time that such student is
enrolled at an institution of higher education.
``(ii) Contents of loan statement.--Each statement
described in clause (i) shall--
``(I) report the borrower's total remaining debt to the
creditor, including accrued but unpaid interest and
capitalized interest;
``(II) report any debt increases since the last statement;
and
``(III) list the current interest rate for each loan.
``(B) Notification of loans disbursed without
certification.--On or before the date a creditor issues any
funds with respect to an extension of credit described in
this subsection, the creditor shall notify the relevant
institution of higher education, in writing, of the amount of
the extension of credit and the student on whose behalf
credit is extended. The form of such written notification
shall be subject to the regulations of the Bureau of Consumer
Financial Protection.
``(C) Annual report.--A creditor that issues funds with
respect to an extension of credit described in this
subsection shall prepare and submit an annual report to the
Bureau of Consumer Financial Protection containing the
required information about private student loans to be
determined by the Bureau of Consumer Financial Protection, in
consultation with the Secretary of Education.''.
(2) Definition of private education loan.--Section
140(a)(7)(A) of the Truth in Lending Act (15 U.S.C.
1650(a)(7)(A)) is amended--
(A) by redesignating clause (ii) as clause (iii);
(B) in clause (i), by striking ``and'' after the semicolon;
and
(C) by adding after clause (i) the following:
``(ii) is not made, insured, or guaranteed under title VII
or title VIII of the Public Health Service Act (42 U.S.C. 292
et seq. and 296 et seq.); and''.
(3) Regulations.--Not later than 365 days after the date of
enactment of this Act, the Director of the Bureau of Consumer
Financial Protection shall issue regulations in final form to
implement paragraphs (3) and (16) of section 128(e) of the
Truth in Lending Act (15 U.S.C. 1638(e)), as amended by
paragraph (1). Such regulations shall become effective not
later than 6 months after their date of issuance.
(b) Amendments to the Higher Education Act of 1965.--
(1) Program participation agreements.--Section 487(a) of
the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is
amended by striking paragraph (28) and inserting the
following:
``(28)(A) Upon the request of a private educational lender,
acting in connection with an application initiated by a
borrower for a private education loan in accordance with
section 128(e)(3) of the Truth in Lending Act (15 U.S.C.
1638(e)(3)), the institution shall within 15 days of receipt
of a certification request--
``(i) provide such certification to such private
educational lender--
``(I) that the student who initiated the application for
the private education loan, or on whose behalf the
application was initiated, is enrolled or is scheduled to
enroll at the institution;
``(II) of such student's cost of attendance at the
institution as determined under part F of this title; and
``(III) of the difference between--
``(aa) the cost of attendance at the institution; and
``(bb) the student's estimated financial assistance
received under this title and other assistance known to the
institution, as applicable;
``(ii) notify the creditor that the institution has
received the request for certification and will need
additional time to comply with the certification request; or
[[Page S1716]]
``(iii) provide notice to the private educational lender of
the institution's refusal to certify the private education
loan under subparagraph (D).
``(B) With respect to a certification request described in
subparagraph (A), and prior to providing such certification
under subparagraph (A)(i) or providing notice of the refusal
to provide certification under subparagraph (A)(iii), the
institution shall--
``(i) determine whether the student who initiated the
application for the private education loan, or on whose
behalf the application was initiated, has applied for and
exhausted the Federal financial assistance available to such
student under this title and inform the student accordingly;
and
``(ii) provide the borrower whose loan application has
prompted the certification request by a private education
lender, as described in subparagraph (A)(i), with the
following information and disclosures:
``(I) The availability of, and the borrower's potential
eligibility for, Federal financial assistance under this
title, including disclosing the terms, conditions, interest
rates, and repayment options and programs of Federal student
loans.
``(II) The borrower's ability to select a private
educational lender of the borrower's choice.
``(III) The impact of a proposed private education loan on
the borrower's potential eligibility for other financial
assistance, including Federal financial assistance under this
title.
``(IV) The borrower's right to accept or reject a private
education loan within the 30-day period following a private
educational lender's approval of a borrower's application and
about a borrower's 3-day right to cancel period.
``(C) For purposes of this paragraph, the terms `private
educational lender' and `private education loan' have the
meanings given such terms in section 140 of the Truth in
Lending Act (15 U.S.C. 1650).
``(D)(i) An institution shall not provide a certification
with respect to a private education loan under this paragraph
unless the private education loan includes terms that
provide--
``(I) the borrower alternative repayment plans, including
loan consolidation or refinancing; and
``(II) that the liability to repay the loan shall be
cancelled upon the death or disability of the borrower or co-
borrower.
``(ii) In this paragraph, the term `disability' means a
permanent and total disability, as determined in accordance
with the regulations of the Secretary of Education, or a
determination by the Secretary of Veterans Affairs that the
borrower is unemployable due to a service connected-
disability.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the effective date of the regulations
described in subsection (a)(3).
(3) Preferred lender arrangement.--Section 151(8)(A)(ii) of
the Higher Education Act of 1965 (20 U.S.C. 1019(8)(A)(ii))
is amended by inserting ``certifying,'' after ``promoting,''.
(c) Report.--Not later than 24 months after the issuance of
regulations under subsection (a)(3), the Director of the
Bureau of Consumer Financial Protection and the Secretary of
Education shall jointly submit to Congress a report on the
compliance of institutions of higher education and private
educational lenders with section 128(e)(3) of the Truth in
Lending Act (15 U.S.C. 1638(e)), as amended by subsection
(a), and section 487(a)(28) of the Higher Education Act of
1965 (20 U.S.C. 1094(a)), as amended by subsection (b). Such
report shall include information about the degree to which
specific institutions utilize certifications in effectively
encouraging the exhaustion of Federal student loan
eligibility and lowering student private education loan debt.
SEC. 5. MARKETING LIMITATION.
Section 456 of the Higher Education Act of 1965 (20 U.S.C.
1087f) is amended by adding at the end the following:
``(c) Limitation on Contracts for the Servicing of Loans.--
A servicer may not market to the borrower of a student loan
made, insured, or guaranteed under this title which the
servicer services, a financial product or service using data
obtained through the servicing relationship, or otherwise
during the servicing process.''.
SEC. 6. SERVICER CHOICE.
Section 456 of the Higher Education Act of 1965 (20 U.S.C.
1087f), as amended by section 5, is further amended by adding
at the end the following:
``(d) Switching Servicers.--The Secretary shall establish a
program that allows a borrower of a loan made under this part
after the date of enactment of the Student Loan Borrower Bill
of Rights to switch from the assigned servicer of such loan
to a new servicer based on a random reassignment by the
Secretary.''.
SEC. 7. CENTRALIZED POINT OF ACCESS.
Part G of title IV of the Higher Education Act of 1965 (20
U.S.C. 1088 et seq.) is amended by adding at the end the
following:
``SEC. 493E. CENTRALIZED POINT OF ACCESS.
``Not later than 2 years after the date of enactment of the
Student Loan Borrower Bill of Rights, the Secretary shall
establish a centralized point of access for all borrowers of
loans that are made, insured, or guaranteed under this title
that are in repayment, including a central location for
account information and payment processing for such loan
servicing, regardless of the specific servicer.''.
SEC. 8. REPORT ON STUDENT LOAN SERVICERS.
Not later than 1 year after the date of enactment of this
Act, the Director of the Bureau of Consumer Financial
Protection, in consultation with the Secretary of Education,
shall submit a report to the Committee on Banking, Housing,
and Urban Affairs of the Senate, the Committee on Health,
Education, Labor, and Pensions of the Senate, the Committee
on Financial Services of the House of Representatives, and
the Committee on Education and the Workforce of the House of
Representatives on private and Federal student loan
servicers, including--
(1) any legislative recommendations to improve student loan
servicing standards; and
(2) information on proactive early intervention methods by
servicers to help distressed student loan borrowers enroll in
any eligible repayment plans.
______
By Mrs. ERNST (for herself, Mr. Tillis, Mr. Grassley, and Mr.
Cornyn):
S. 841. A bill to expand eligibility for health care under the
Veterans Access, Choice, and Accountability Act of 2014 to include
certain veterans seeking mental health care, and for other purposes; to
the Committee on Veterans' Affairs.
Mrs. ERNST. Mr. President, as we begin this week with the serious and
necessary discussions about the budget, I rise today to talk about
something that is very personal to me, something that is incredibly
close to my heart--the service and sacrifice of our Nation's finest men
and women, those who serve in our Armed Forces.
As the budget process moves forward, we must ensure that our national
security needs are met and that our veterans can receive the much-
needed care and assistance they deserve.
Growing up on a farm in rural southwest Iowa, my parents instilled in
my sister, my brother, and me the importance of hard work, service, and
sacrifice.
In the summer between my freshman and sophomore years at Iowa State
University, I was very fortunate to attend an agricultural exchange in
Ukraine, when it was still part of the former Soviet Union. The Iowa
students and I lived on a collective farm for a number of weeks. In the
evening, when the community members came together, we did not talk
about agricultural practices, like I anticipated. What we talked about
was what it was like to be free, what it was like to be an American.
Those were the things the Ukrainians wanted to know. They wanted to
know about freedom, our Republic, and democracy. Just a few short years
later, they became an independent nation. They are a sovereign nation.
It was then that I better understood what it meant to have freedom
and how much people elsewhere truly desire it. I wanted to do my part
to ensure our country always remained free.
That realization led me to make a decision when I was 19 years old--
to join the Army Reserve Officers' Training Corps, commonly known as
ROTC.
For over two decades, I have had the great honor of wearing our
Nation's uniform. Today, I serve as a lieutenant colonel in the Iowa
Army National Guard, and I have been privileged to have led and
commanded at many levels, from platoon to battalion. From 2003 to 2004,
I served as a company commander in Operation Iraqi Freedom. My unit was
tasked with running convoys through Kuwait and southern Iraq.
As a soldier, I learned firsthand the vital role that our citizen
soldiers play. Citizen soldiers are folks who train for military duty
so they are prepared to defend in the face of an emergency. These men
and women take on this task voluntarily and can be called upon to serve
at any time.
While overseas, I had the opportunity to serve alongside some of
America's finest, our bravest men and women. I saw firsthand how
dangerous threats against our Nation can be.
It is becoming increasingly important that our military--Active Duty,
National Guard, and Reserve--are always working together as one
cohesive unit. We are strongest in numbers when working together to
build one another up and support one another. Our mission is clear and
we come from all corners of the country united on the same goal--to
defend our freedom.
I continue to remain focused on strengthening our national security,
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both in my role in the Iowa National Guard and on the Armed Services
Committee, where we discuss ways to support our exceptional military
and develop bipartisan strategies to confront terrorism and destroy Al
Qaeda, ISIS, and those who are radicalized by them.
Here in the Senate, we also have an incredible responsibility not
only to make sure our country is protected but also to ensure we live
up to the promises made to our veterans. These men and women are
trained and have selflessly sacrificed in defense of our freedoms and
our way of life. However, we must ensure that our veterans are prepared
to transition back to civilian life. They deserve nothing less than the
benefits they were promised and a quality of care we can all be proud
of.
Unfortunately, that has not been the case. According to the VA, there
are approximately 22 veteran suicides per day. We hear this number from
time to time. But think about it--22 veteran suicides per day.
In November 2014 testimony before the Senate Veterans' Affairs
Committee, the VA's chief consultant for mental health said the average
wait time for a mental health appointment at the VA is 36 days. We can,
and must, do better for our veterans.
If a non-VA mental health care professional can reach a veteran 1
day, 1 week or even 2 weeks earlier than 36 days, Congress nor the VA
should be an obstacle to affording a veteran potentially lifesaving
mental health treatment.
Veterans themselves are the only ones who know their mental health
limit, and a veteran should receive the benefit of the doubt about
where that limit is--not the VA.
This is an issue that impacts all eras of veterans. Since coming to
Washington, I have heard from many veterans on this very issue. One
veteran in particular from the Vietnam war era admitted that he had
twice attempted suicide. This veteran felt like he didn't have anywhere
to go. We have to do better.
Today, as my first piece of legislation in the Senate, I am
introducing the Prioritizing Veterans Access to Mental Health Care Act.
This legislation provides an option for our veterans to receive
mental health treatment until they can receive comprehensive mental
health care at the VA. This authorization for mental health care
provides a backstop--other than the emergency room--for our veterans.
Ultimately, the ER should not be considered a backstop for delayed
mental health care at the VA. Most veterans who seek mental health
treatment at emergency rooms do so when they have reached the limits of
their suffering.
There is no acceptable VA wait time for mental health care for our
veterans. The limits to how much suffering a veteran can endure simply
cannot be accurately measured by the VA or by any medical professional.
Specifically, this legislation puts veterans mental health care first
and foremost, provides a backstop to VA mental health care, and
prioritizes incentives to hire more mental health care professionals at
the Department of Veterans Affairs.
The Prioritizing Veterans Access to Mental Health Care Act does
several things.
First, it amends the Veterans Access, Choice, and Accountability Act
of 2014 to where a veteran is instantly authorized non-VA care if the
veteran provides an electronic or hard-copy statement in writing that
he or she is not receiving adequate or timely mental health care at the
VA. This eliminates the 40-mile and VA wait-time triggers for mental
health care under the choice act.
Second, it prioritizes incentives for the hiring of mental health
care professionals at the VA.
And third, it provides the VA 90 days to enact the program.
I hope this legislation will receive broad bipartisan support because
ensuring our veterans have access to the mental health care they
deserve is not a conservative or liberal concept. It is not a
Republican or Democrat idea. It is an American value.
If we do not stand up for America's tenacious survivors, who will?
Thanks to these brave men and women, we are able to stand on this floor
and fight for our beliefs and ideals. These veterans fought for us and
defended us tirelessly. They endured more than some of us can ever
imagine. The invisible wounds of war can no longer go unnoticed. Now,
it is our duty to do all we can to thank them and ensure they have
access to the quality mental health care they deserve.
God bless these men and women, and let us strive to do better for
them.
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