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S. 1675: Student Loan Servicer Performance Accountability Act

The text of the bill below is as of Jul 31, 2017 (Introduced).

115th CONGRESS

1st Session

S. 1675

IN THE SENATE OF THE UNITED STATES

July 31, 2017

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

A BILL

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

1.

Short title

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

2.

Competition in student loan servicing

(a)

Cancellation of solicitations

The Secretary of Education shall cancel the Department of Education solicitations for the Federal Aid Servicing Solution dated April 4, 2016 and October 26, 2016, including any amendments to those solicitations (Solicitation No. ED–FSA–17–R–0001 et seq).

(b)

Competition in student loan servicing

Section 456 of the Higher Education Act of 1965 (20 U.S.C. 1087f) is amended by adding at the end the following:

(c)

Competition in student loan servicing

(1)

Competition

As of the date of enactment of the Student Loan Servicer Performance Accountability Act, in order to promote accountability and high-quality services to borrowers, the Secretary shall not issue any contract solicitation for a new Federal student loan servicing solution unless such a solution—

(A)

provides for the participation of multiple student loan servicers that contract directly with the Department of Education; and

(B)

allocates student loan borrower accounts to eligible student loan servicers based on performance.

(2)

Prohibition

The Secretary shall not award a contract to a single servicer to service all Federal Direct Loans.

.