[Congressional Record Volume 166, Number 202 (Tuesday, December 1, 2020)]
[Senate]
[Pages S7141-S7142]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               STOP STUDENT DEBT RELIEF SCAMS ACT OF 2019

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the 
Committee on Health, Education, Labor, and Pensions be discharged from 
further consideration of S. 1153 and the Senate proceed to its 
immediate consideration.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 1153) to explicitly make unauthorized access to 
     Department of Education information technology systems and 
     the misuse of identification devices issued by the Department 
     of Education a criminal act.

  There being no objection, the committee was discharged, and the 
Senate proceeded to consider the bill.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the bill 
be considered read a third time and passed and that the motion to 
reconsider be considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1153) was ordered to be engrossed for a third reading, 
was read the third time, and passed as follows:

                                S. 1153

       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 ``Stop Student Debt Relief 
     Scams Act of 2019''.

     SEC. 2. CRIMINAL PENALTIES.

       (a) In General.--Section 490 of the Higher Education Act of 
     1965 (20 U.S.C. 1097) is amended by adding at the end the 
     following:
       ``(e) Access to Department of Education Information 
     Technology Systems for Fraud, Commercial Advantage, or 
     Private Financial Gain.--Any person who knowingly uses an 
     access device, as defined in section 1029(e)(1) of title 18, 
     United States Code, issued to another person or obtained by 
     fraud or false statement to access Department information 
     technology systems for purposes of obtaining commercial 
     advantage or private financial gain, or in furtherance of any 
     criminal or tortious act in violation of the Constitution or 
     laws of the United States or of any State, shall be fined not 
     more than $20,000, imprisoned for not more than 5 years, or 
     both.''.
       (b) Guidance.--The Secretary shall issue guidance regarding 
     the use of access devices in a manner that complies with this 
     Act, and the amendments made by this Act.
       (c) Effective Date of Penalties.--Notwithstanding section 
     6, the penalties described in section 490(e) of the Higher 
     Education Act of 1965 (20 U.S.C. 1097), as added by 
     subsection (a), shall take effect the day after the date on 
     which the Secretary issues guidance regarding the use of 
     access devices, as described in subsection (b).

     SEC. 3. LOAN COUNSELING.

       Section 485(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1092(b)) is amended--
       (1) in clause (viii), by striking ``and'' after the 
     semicolon; and
       (2) by adding at the end the following:
       ``(x) an explanation that--

       ``(I) the borrower may be contacted during the repayment 
     period by third-party student debt relief companies;
       ``(II) the borrower should use caution when dealing with 
     those companies; and
       ``(III) the services that those companies typically provide 
     are already offered to borrowers free of charge through the 
     Department or the borrower's servicer; and''.

     SEC. 4. PREVENTION OF IMPROPER ACCESS.

       Section 485B of the Higher Education Act of 1965 (20 U.S.C. 
     1092b) is amended--
       (1) by redesignating subsections (e) through (h) as 
     subsections (f) through (i), respectively;
       (2) in subsection (d)--
       (A) in paragraph (5)(C), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (6)(C), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(7) preventing access to the data system and any other 
     system used to administer a program under this title by any 
     person or entity for the purpose of assisting a student in 
     managing loan repayment or applying for any repayment plan, 
     consolidation loan, or other benefit authorized by this 
     title, unless such access meets the requirements described in 
     subsection (e).'';
       (3) by inserting after subsection (d) the following:
       ``(e) Requirements for Third-Party Data System Access.--
       ``(1) In general.--As provided in paragraph (7) of 
     subsection (d), an authorized person or entity described in 
     paragraph (2) may access the data system and any other system 
     used to administer a program under this title if that 
     access--
       ``(A) is in compliance with terms of service, information 
     security standards, and a code of conduct which shall be 
     established by the Secretary and published in the Federal 
     Register;

[[Page S7142]]

       ``(B) is obtained using an access device (as defined in 
     section 1029(e)(1) of title 18, United States Code) issued by 
     the Secretary to the authorized person or entity; and
       ``(C) is obtained without using any access device (as 
     defined in section 1029(e)(1) of title 18, United States 
     Code) issued by the Secretary to a student, borrower, or 
     parent.
       ``(2) Authorized person or entity.--An authorized person or 
     entity described in this paragraph means--
       ``(A) a guaranty agency, eligible lender, or eligible 
     institution, or a third-party organization acting on behalf 
     of a guaranty agency, eligible lender, or eligible 
     institution, that is in compliance with applicable Federal 
     law (including regulations and guidance); or
       ``(B) a licensed attorney representing a student, borrower, 
     or parent, or another individual who works for a Federal, 
     State, local, or Tribal government or agency, or for a 
     nonprofit organization, providing financial or student loan 
     repayment counseling to a student, borrower, or parent, if--
       ``(i) that attorney or other individual has never engaged 
     in unfair, deceptive, or abusive practices, as determined by 
     the Secretary;
       ``(ii) that attorney or other individual does not work for 
     an entity that has engaged in unfair, deceptive, or abusive 
     practices (including an entity that is owned or operated by a 
     person or entity that engaged in such practices), as 
     determined by the Secretary;
       ``(iii) system access is provided only through a separate 
     point of entry; and
       ``(iv) the attorney or other individual has consent from 
     the relevant student, borrower, or parent to access the 
     system.''; and
       (4) in subsection (f)(1), as redesignated by paragraph 
     (1)--
       (A) in subparagraph (A), by striking ``student and parent'' 
     and inserting ``student, borrower, and parent'';
       (B) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively;
       (C) by inserting after subparagraph (B) the following:
       ``(C) the reduction in improper data system access as 
     described in subsection (d)(7);''; and
       (D) by striking subparagraph (E), as redesignated by 
     subparagraph (B), and inserting the following:
       ``(E) any protocols, codes of conduct, terms of service, or 
     information security standards developed under paragraphs (6) 
     or (7) of subsection (d) during the preceding fiscal year.''.

     SEC. 5. AGENCY PREVENTION AND DETECTION.

       Section 141(b)(2) of the Higher Education Act of 1965 (20 
     U.S.C. 1018(b)(2)) is amended by adding at the end the 
     following:
       ``(C) Taking action to prevent and address the improper use 
     of access devices, as described in section 485B(d)(7), 
     including by--
       ``(i) detecting common patterns of improper use of any 
     system that processes payments on Federal Direct Loans or 
     other Department information technology systems;
       ``(ii) maintaining a reporting system for contractors 
     involved in the processing of payments on Federal Direct 
     Loans in order to allow those contractors to alert the 
     Secretary of potentially improper use of Department 
     information technology systems;
       ``(iii) proactively contacting Federal student loan 
     borrowers whose Federal student loan accounts demonstrate a 
     likelihood of improper use in order to warn those borrowers 
     of suspicious activity or potential fraud regarding their 
     Federal student loan accounts; and
       ``(iv) providing clear and simple disclosures in 
     communications with borrowers who are applying for or 
     requesting assistance with Federal Direct Loan programs 
     (including assistance or applications regarding income-driven 
     repayment, forbearance, deferment, consolidation, 
     rehabilitation, cancellation, and forgiveness) to ensure that 
     borrowers are aware that the Department will never require 
     borrowers to pay for such assistance or applications.''.

     SEC. 6. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on the date that is 180 days after the date of 
     enactment of this Act.

                          ____________________