[Congressional Record Volume 166, Number 206 (Monday, December 7, 2020)]
[House]
[Pages H6880-H6883]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               STOP STUDENT DEBT RELIEF SCAMS ACT OF 2019

  Ms. STEVENS. Mr. Speaker, I move to suspend the rules and pass the 
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.

[[Page H6881]]

  The Clerk read the title of the bill.
  The text of the bill is 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;
       ``(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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Michigan (Ms. Stevens) and the gentleman from Pennsylvania (Mr. 
Smucker) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Michigan.


                             General Leave

  Ms. STEVENS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days in which to revise and extend their remarks and 
to include any extraneous material on S. 1153, the Stop Student Debt 
Relief Scams Act of 2019.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Michigan?
  There was no objection.
  Ms. STEVENS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of S. 1153, the Stop Student 
Debt Relief Scams Act, today.
  I would like to thank my colleague, Congressman Smucker, for 
cointroducing this bill with me and for his efforts to end these debt 
relief scams. We all know that our country faces a mounting student 
debt crisis, with Americans now holding more than $1.5 trillion in 
student loan debt.
  Predatory scammers are increasingly taking advantage of student loan 
borrowers, who face a complicated loan repayment process. These 
unscrupulous scams defraud student borrowers by providing deceptive 
information to mislead them into paying thousands of dollars for 
services that the Federal Government already provides for free.
  These scams come by way of robocalls. They are harassing and 
menacing, and the victims of these schemes are not only defrauded but, 
unknowingly, become delinquent on their payments and default on their 
loans, falling even deeper into debt.
  We hear this time and time again because these phone calls come to 
your personal cell phone even if you don't have a student loan.
  In 2007, I took out $9,000 of student loans to finish my last 
semester of graduate school. I was able to repay that loan within 6 
years. Years later, I still receive these very types of menacing phone 
calls, to my personal cell phone, of scams asking me to go through 
these programs.

[[Page H6882]]

  These are individuals who receive information through the Department 
of Education. This is what we are trying to stop. They are accessing 
your personal information to scam you.
  This is what we are here today to stop. This problem, unfortunately, 
during COVID-19 has only exacerbated. During this pandemic, the relief 
that was provided to help Federal student loan borrowers under the 
CARES Act has created additional opportunities for scammers to target 
desperate Americans.
  This bill will ensure that the Department of Education and law 
enforcement agencies have the tools they need to crack down on these 
predatory fraudsters. It will also empower student borrowers by 
providing counseling and resources to make sure that all borrowers are 
aware of these potential scams and receive accurate information about 
the repayment options.
  Knowledge is power here. It is time to stop these scammers from 
jeopardizing the financial future of student borrowers, and I urge my 
colleagues to support the passage of this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMUCKER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of S. 1153, the Stop Student 
Debt Relief Scams Act. I was proud to have introduced the companion 
bill to this, H.R. 2888, with Representative Stevens.
  We cointroduced this bill, and I want to thank the gentlewoman for 
her leadership on this bill and for her work on this important issue. 
This is bipartisan, bicameral legislation that will crack down on 
third-party debt collection scammers who exploit vulnerable students.
  Over 40 million Americans today, Mr. Speaker, owe a collective $1.5 
trillion in Federal student loan debt. Students are working hard to pay 
off their loans, but many are struggling to make ends meet. To that 
end, Congress offers borrowers an array of options to relieve the 
financial pressure of their debt.
  The Department of Education hires Federal student loan servicers to 
assist borrowers in repaying their loans by helping the borrower select 
the best option for their specific situation.
  These services are all provided at no cost to borrowers. 
Unfortunately, there are hundreds of malicious third-party debt 
collection companies that are seizing on students' vulnerability and 
engaging in predatory schemes by selling students on the notion that 
their company will reduce or make the student loan debt disappear.
  These are scammers who trick borrowers into paying an exorbitant fee 
for a service that is already available for free through the Federal 
student loan servicer. Even worse, the victims of the scheme usually 
become delinquent and enter default because their payments are no 
longer going to reduce their loan balance but are, instead, lining the 
pockets of these debt relief scammers.
  This bill and the House companion bill would help Federal and State 
officials take action against these scammers. Specifically, the bill 
clarifies that it is a Federal crime to access the Department of 
Education information technology systems for fraud, commercial 
advantage, or for private financial gain.
  The bill also penalizes scammers with a fine of up to $20,000, 
imprisonment of up to a 5-year sentence, or some combination of both. 
These measures ensure that there are strong deterrents set in place to 
prevent widespread abuse from debt scammers.
  Our bill also improves student loan exit counseling by warning 
Federal loan borrowers about debt relief scams and informing them that 
these third-party companies charge money for services that are already 
provided to borrowers for free by the Department of Education.
  Creating awareness will significantly aid students' ability to spot a 
scam. Importantly, this legislation requires the Department of 
Education to maintain commonsense reporting, detection, and prevention 
activities to stop potential or known debt relief scams.

  Student loan borrowers face many obstacles in our generous yet 
complicated student loan system. Congress must see to it that the 
malicious actors who seek to con students and line their own pockets 
are stopped.
  Mr. Speaker, the Stop Student Debt Relief Scams Act is bipartisan 
legislation that holds third-party debt collection scammers accountable 
for their predatory schemes to line their pockets at the expense of 
hardworking families.
  At a time when Americans are feeling the financial impact of the 
coronavirus pandemic, this legislation is even more important and is a 
commonsense measure to prevent borrowers from falling victim to these 
scams.
  Today's legislation will help strengthen the tools Federal and State 
officials need to combat these bad actors while also educating student 
loan borrowers.
  Mr. Speaker, I strongly urge my colleagues to vote ``yes'' on this 
bill, and I yield back the balance of my time.
  Ms. STEVENS. Mr. Speaker, I yield myself the balance of my time.
  He is called the gentleman from Pennsylvania, but some of us also 
call him the gentleman from Lancaster.
  I truly want to thank my colleague on the other side of the aisle, 
Mr. Smucker, for his leadership on this critical piece of bipartisan 
legislation to stand up for hardworking Americans, to stand up for our 
students, and to put into place a clarified law declaring that it is a 
Federal crime to access U.S. Department of Education information 
technology systems for purposes of fraud, commercial advantage, or 
private financial gain, and that fines these scammers up to $20,000, or 
up to 5 years of imprisonment, as my colleague so nicely articulated.
  This is an attempt today to shut down predatory scammers who are 
targeting our student borrowers, for the financial health of the 
American people.
  Again, I strongly encourage my colleagues on both sides of the aisle 
to join us here today in passing this critical piece of legislation.
  Mr. Speaker, I yield back the balance of my time.
  Ms. JACKSON LEE. Mr. Speaker, as a senior member of the Judiciary, 
Homeland, and Budget Committees, I rise in strong support of S. 1153, 
the ``Stop Student Debt Relief Scams Act,'' which helps protect 
borrowers from deceptive student debt relief scams by enhancing law 
enforcement and administrative abilities to identify and shut down such 
student debt relief scams.
  With ordinary Americans facing nearly $1.5 trillion in student loan 
debt, borrowers are looking for relief wherever they can find it but 
unfortunately many borrowers do not receive the right information about 
how to find out and qualify for opportunities to get help with lowering 
or postponing their payments or applying for relief, nearly all of 
which is available for free.
  These include income-driven repayment, deferment, forbearance, 
consolidation, rehabilitation, and even some programs for loan 
forgiveness.
  Debt relief scams falsely promise borrowers a quick fix with little 
hassle and their business model is to robocall student loan borrowers 
until they agree to pay thousands of dollars in unnecessary and 
exorbitant fees for services that are already available for free.
  They claim to reduce or forgive borrowers' student debt and take care 
of all the paperwork.
  Some even purport to be associated with the federal government.
  Most victims of these deceptive debt relief scams are not only 
defrauded by the companies that promised to help them, but unknowingly 
become delinquent on their payments and default on their loans, miss 
communications with their servicers, and fall even deeper into debt.
  S. 1153, the Stop Student Debt Relief Scams Act of 2019 would 
accelerate the end to this rampant misconduct.
  Specifically, the Stop Student Debt Relief Scams Act of 2019 will 
enhance law enforcement and administrative abilities to identify and 
shut down student debt relief scams by:
  Clarifying that it is a federal crime to access U.S. Department of 
Education information technology systems for fraud, commercial 
advantage, or private financial gain, and fines scammers up to $20,000, 
up to 5 years imprisonment, or both, for violations of the law;
  Directing the U.S. Department of Education to create a new form of 
third-party access, akin to the current ``preparer'' function on the 
Free Application for Student Aid (FAFSA) for those applying on behalf 
of a student and their family, in order to protect legitimate 
organizations--such as legal aid groups--that help borrowers navigate 
repayment;
  Requiring the U.S. Department of Education to maintain commonsense 
reporting, detection, and prevention activities to stop potential or 
known debt relief scams; and
  Requiring student loan exit counseling to warn federal loan borrowers 
about debt relief

[[Page H6883]]

scams, in recognition of the fact that borrowers may fall prey to false 
promises because they lack sufficient information on legitimate 
programs to help them manage repayment.
  This is needed legislation and I am pleased it has been endorsed by 
Education Finance Council, Generation Progress, National Consumer Law 
Center (on behalf of its low income clients), National Council of 
Higher Education Resources, Student Loan Servicing Alliance, The 
Institute for College Access and Success, and Young Invincibles.
  I urge all Members to join me in voting for S. 1153, the ``Stop 
Student Debt Relief Scams Act.''

                              {time}  1400

  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Michigan (Ms. Stevens) that the House suspend the 
rules and pass the bill, S. 1153.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________