H.R. 7671

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7671 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7671

To amend the Consumer Financial Protection Act of 2010 to establish the 
position of the Assistant Director and Student Loan Borrower Advocate 
of the Bureau of Consumer Financial Protection, to provide a framework 
for the Bureau of Consumer Financial Protection and the Department of 
Education to coordinate in providing assistance to and serving 
borrowers seeking to resolve complaints related to their private 
education or Federal student loans, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 25, 2026

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

_______________________________________________________________________

A BILL

To amend the Consumer Financial Protection Act of 2010 to establish the 
position of the Assistant Director and Student Loan Borrower Advocate 
of the Bureau of Consumer Financial Protection, to provide a framework 
for the Bureau of Consumer Financial Protection and the Department of 
Education to coordinate in providing assistance to and serving 
borrowers seeking to resolve complaints related to their private 
education or Federal student loans, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Students and Young 
Consumers Empowerment Act''.
(b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--STUDENTS AND YOUNG CONSUMERS EMPOWERMENT

Sec. 101. Assistant Director and Student Loan Borrower Advocate.
Sec. 102. Duties of the Department of Education.
TITLE II--STUDENT LOAN INTEGRITY AND TRANSPARENCY

Sec. 201. Definitions.
Sec. 202. Cooperation between the Bureau and the Department.

TITLE I--STUDENTS AND YOUNG CONSUMERS EMPOWERMENT

SEC. 101. ASSISTANT DIRECTOR AND STUDENT LOAN BORROWER ADVOCATE.

(a) In General.--Section 1035 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5535) is amended to read as follows:

``SEC. 1035. ASSISTANT DIRECTOR AND STUDENT LOAN BORROWER ADVOCATE.

``(a) Establishment.--There is established the position of 
Assistant Director and Student Loan Borrower Advocate, who shall be 
appointed by the Director.
``(b) Duties.--The Assistant Director and Student Loan Borrower 
Advocate shall--
``(1) serve as the head of the Office for Students and 
Young Consumers established under subsection (e);
``(2) not later than the end of the 60-day period beginning 
on the date of enactment of this section, enter into a 
memorandum of understanding with the Secretary of Education, 
the Chief Operating Officer appointed under section 141(d) of 
the Higher Education Act of 1965 (20 U.S.C. 1018(d)), and the 
Student Loan Ombudsman appointed under section 141(f) of the 
Higher Education Act of 1965 (20 U.S.C. 1018(f)) that--
``(A) ensures coordination in providing assistance 
to and serving borrowers seeking to resolve complaints 
related to their private education loans or Federal 
student loans; and
``(B) authorizes the Bureau to access all relevant 
Department of Education information systems, records, 
and data, including any relevant information systems, 
records, or data maintained by contractors of the 
Department of Education;
``(3) accept and attempt to resolve complaints from 
borrowers with both private education loans and Federal student 
loans, including complaints against lenders, servicers, and 
debt collectors; and
``(4) carry out such other duties as the Director may 
determine appropriate.
``(c) Notification to Congress.--The Director shall provide written 
notice and an explanation to the appropriate congressional committees, 
if--
``(1) the position of the Assistant Director and Student 
Loan Borrower Advocate has been vacant for a period of 60 days 
or more; or
``(2) the memorandum of understanding required under 
subsection (b)(2) has lapsed for a period of 60 days or more.
``(d) Reports.--
``(1) Annual report on the student loan marketplace.--The 
Assistant Director and Student Loan Borrower Advocate shall--
``(A) compile and analyze complaints from borrowers 
with Federal student loans or private education loans;
``(B) not less than once per year, submit a report 
to Congress summarizing the activities of the Assistant 
Director and Student Loan Borrower Advocate in the 
previous year and including an independent evaluation 
of risks to consumers posed by policies and practices 
in the student loan marketplace; and
``(C) as part of each report submitted in 
accordance with subparagraph (B), and any other time 
deemed prudent by the Student Loan Borrower Advocate, 
make recommendations to the Director, the Secretary of 
the Treasury, the Secretary of Education, and the 
appropriate congressional committees to address risk to 
student loan borrowers and strengthen the student loan 
marketplace.
``(2) Annual report on campus banking.--Not less than once 
per year, the Assistant Director and Student Loan Borrower 
Advocate shall issue a report to the appropriate congressional 
committees analyzing the use of consumer financial products and 
services by students enrolled at institutions of higher 
education, including an evaluation of contracts and other 
financial arrangements between institutions of higher education 
and providers of consumer financial products and services, 
including an evaluation of revenue sharing provisions, 
marketing provisions, and fees assessed to students who use 
such products and services.
``(3) Report on risks to young consumers.--Not less than 
once per year, the Assistant Director and Student Loan Borrower 
Advocate shall issue a report to the appropriate congressional 
committees containing an analysis of complaints submitted to 
the Bureau by young consumers during the previous year and 
offering an independent evaluation of risks to consumers posed 
by policies and practices in the marketplace for consumer 
financial products and services.
``(e) Office for Students and Young Consumers.--There is 
established an Office for Students and Young Consumers, which shall be 
responsible for developing and implementing initiatives for students, 
young consumers, and their families intended to--
``(1) educate and empower students, young consumers, and 
their families to make better informed decisions regarding 
consumer financial products and services; and
``(2) coordinate efforts among Federal and State agencies, 
as appropriate, regarding consumer protection measures relating 
to consumer financial products and services offered to, or used 
by, students, young consumers, and their families.
``(f) Collection of Information; Market Monitoring.--
``(1) In general.--In carrying out this section, the 
Assistant Director and Student Loan Borrower Advocate shall 
have the authority to gather information from time to time 
regarding the organization, business conduct, markets, and 
activities of covered persons and service providers.
``(2) Sources of information.--In gathering information 
described under paragraph (1), the Assistant Director and 
Student Loan Borrower Advocate may gather and compile 
information from a variety of sources, including examination 
reports concerning covered persons or service providers, 
consumer complaints, voluntary surveys and voluntary interviews 
of consumers, surveys and interviews with covered persons and 
service providers, and review of available databases.
``(3) Authority to require reports and other information.--
The Director shall, upon the recommendation of the Assistant 
Director and Student Loan Borrower Advocate, require covered 
persons and service providers participating in consumer 
financial services markets to file with the Bureau, under oath 
or otherwise, in such form and within such reasonable period of 
time as the Bureau may prescribe by rule or order, annual or 
special reports, answers in writing to specific questions, or 
other information described under section 1022(c)(4).
``(4) Limitation.--The Bureau may not use its authorities 
under this subsection to obtain records from covered persons 
and service providers participating in consumer financial 
services markets for purposes of gathering or analyzing the 
personally identifiable financial information of consumers.
``(g) Definitions.--For purposes of this section:
``(1) Appropriate congressional committees.--The term 
`appropriate congressional committees' means the Committees on 
Education and Labor and Financial Services of the House of 
Representatives and the Committees on Banking, Housing, and 
Urban Affairs and Health, Education, Labor, and Pensions of the 
Senate.
``(2) Truth in lending act terms.--The terms `private 
education loan' and `institution of higher education' have the 
meanings given those terms, respectively, under section 140 of 
the Truth in Lending Act (15 U.S.C. 1650).''.
(b) Clerical Amendment.--The table of contents under section 1(b) 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act is 
amended, in the item relating to section 1035, by striking ``Private 
Education Loan Ombudsman'' and inserting ``Assistant Director and 
Student Loan Borrower Advocate''.

SEC. 102. DUTIES OF THE DEPARTMENT OF EDUCATION.

Part D of title I of the Higher Education Act of 1965 (20 U.S.C. 
1018 et seq.) is amended by adding at the end the following:

``SEC. 144. MEMORANDUM OF UNDERSTANDING WITH THE ASSISTANT DIRECTOR AND 
STUDENT LOAN BORROWER ADVOCATE.

``Not later than the end of the 60-day period beginning on the date 
of enactment of this section, the Secretary of Education, the Chief 
Operating Officer appointed under section 141(d), and the Student Loan 
Ombudsman appointed under section 141(f) shall enter into a memorandum 
of understanding with the Assistant Director and Student Loan Borrower 
Advocate of the Bureau of Consumer Financial Protection that--
``(1) ensures coordination in providing assistance to and 
serving borrowers seeking to resolve complaints related to 
their private education loans or loans made, insured, or 
guaranteed under title IV; and
``(2) authorizes the Bureau to access all relevant 
Department information systems, records, and data, including 
any relevant information systems, records, or data maintained 
by contractors of the Department.''.

TITLE II--STUDENT LOAN INTEGRITY AND TRANSPARENCY

SEC. 201. DEFINITIONS.

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

SEC. 202. COOPERATION BETWEEN THE BUREAU AND THE DEPARTMENT.

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