Simplifying Access to Student Loan Information Act of 2014 - Amends the Truth in Lending Act to require private educational lenders to submit to the Secretary of Education information regarding each private education loan they make.
Requires that such information: (1) be placed in the National Student Loan Data System (System), and (2) allow for the electronic exchange of data between the borrowers of those loans and the System. (The System currently contains information regarding loans made, insured, or guaranteed under the Federal Family Education Loan program and loans made under the William D. Ford Federal Direct Loan and Federal Perkins Loan programs.)
Requires the private education loan information to include, if determined appropriate by the Secretary:
Requires private educational lenders to ensure the privacy of borrowers and update the loan information they submit to the System on the same schedule as information is updated under the System.
Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require the Secretary to ensure that: (1) a cosigner of a private education loan for which information is included in the System has access only to that information, and (2) a private educational lender has access to the System only to submit information regarding the lender's loans.
Directs the Secretary to establish a functionality within the System that enables student borrowers of loans made, insured, or guaranteed under title IV to input the information necessary to compare the repayment plans available to them under that title.
Requires the Secretary to establish a five-year pilot program awarding competitive grants to institutions of higher education, title IV loan servicers, and nonprofit organizations to: (1) establish or improve non-traditional outreach programs and initiatives to reduce deferments, forbearances, and defaults on student loan repayments; and (2) establish best practices for reducing those deferments, forbearances, and defaults.
Allows the Secretary to continue to award competitive grants to such entities after the close of the pilot program if the Secretary deems that program to have been successful in reducing deferments, forbearances, and defaults.
Requires recipients of grants after the pilot program to establish either: (1) a Pay-for-Performance project, under which they agree to be reimbursed under the grant primarily on the basis of achieving specified performance measures; or (2) a Pay-for-Success project, under which they partner with a project investor and agree to be reimbursed under the grant only if the project achieves specified performance measures.
Directs the Secretary to establish and publish those performance measures no later than six months after the pilot program's completion.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2107 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2107
To increase students' and borrowers' access to student loan information
within the National Student Loan Data System, and to encourage improved
outreach to and communication with borrowers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 11, 2014
Mrs. Shaheen introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To increase students' and borrowers' access to student loan information
within the National Student Loan Data System, and to encourage improved
outreach to and communication with borrowers.
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 ``Simplifying Access to Student Loan
Information Act of 2014''.
SEC. 2. AMENDMENT TO THE TRUTH IN LENDING ACT.
(a) In General.--Section 128(e) of the Truth in Lending Act (15
U.S.C. 1638(e)) is amended by adding at the end the following:
``(12) National student loan data system.--
``(A) In general.--Each private educational lender
shall--
``(i) submit to the Secretary of Education
for inclusion in the National Student Loan Data
System established under section 485B of the
Higher Education Act of 1965 (20 U.S.C. 1092b)
information regarding each private education
loan made by such lender that will allow for
the electronic exchange of data between
borrowers of private education loans and the
System; and
``(ii) in carrying out clause (i), ensure
the privacy of private education loan
borrowers.
``(B) Information to be submitted.--The information
regarding private education loans required under
subparagraph (A) to be included in the National Student
Loan Data System shall include the following if
determined appropriate by the Secretary of Education:
``(i) The total amount and type of each
such loan made, including outstanding interest
and outstanding principal on such loan.
``(ii) The interest rate of each such loan
made.
``(iii) Information regarding the borrower
that the Secretary of Education determines is
necessary to ensure the electronic exchange of
data between borrowers of private education
loans and the System.
``(iv) Information, including contact
information, regarding the lender that owns the
loan.
``(v) Information, including contact
information, regarding the servicer that is
handling the loan.
``(vi) Information concerning the date of
any default on the loan and the collection of
the loan, including any information concerning
the repayment status of any defaulted loan.
``(vii) Information regarding any deferment
or forbearance granted on the loan.
``(viii) The date of the completion of
repayment by the borrower of the loan.
``(ix) Any other information determined by
the Secretary of Education to be necessary for
the operation of the National Student Loan Data
System.
``(C) Update.--Each private educational lender
shall update the information regarding private
education loans required under subparagraph (A) to be
included in the National Student Loan Data System on
the same schedule as information is updated under the
System under section 485B of the Higher Education Act
of 1965 (20 U.S.C. 1092b).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to private education loans that were made for the 2011-2012
academic year or later.
SEC. 3. AMENDMENT TO THE HIGHER EDUCATION ACT OF 1965.
Section 485B of the Higher Education Act of 1965 (20 U.S.C. 1092b)
is amended by adding at the end the following:
``(i) Private Education Loans.--
``(1) In general.--The National Student Loan Data System
established pursuant to subsection (a) shall contain the
information required to be included under section 128(e)(12) of
the Truth in Lending Act (15 U.S.C. 1638(e)(12)).
``(2) Cosigner.--Notwithstanding any other provision of
law, the Secretary shall ensure that any cosigner of a private
education loan for which information is included in the
National Student Loan Data System--
``(A) is able to access the information in such
System with respect to such private education loan; and
``(B) does not have access to any information in
such System with respect to any loan for which the
cosigner has not cosigned.
``(3) Privacy.--The Secretary shall ensure that a private
educational lender--
``(A) has access to the National Student Loan Data
System only to submit information for such System
regarding the private education loans of such lender;
and
``(B) may not see information in the System
regarding the loans of any other lender.
``(j) Repayment Options.--The Secretary shall establish a
functionality within the National Student Loan Data System established
pursuant to subsection (a) that enables a student borrower of a loan
made, insured, or guaranteed under this title to input information
necessary for the estimation of repayment amounts under the various
repayment plans available to the borrower of such loan to compare such
repayment plans.''.
SEC. 4. NON-TRADITIONAL OUTREACH PROGRAM.
(a) Pilot Program Authorized.--
(1) In general.--The Secretary of Education (referred to in
this section as the ``Secretary'') shall establish a 5-year
pilot program to award grants, on a competitive basis, to
eligible entities to establish or improve non-traditional
outreach programs and initiatives with the goal of--
(A) reducing deferments, forbearances, and defaults
on student loan repayments; and
(B) establishing best practices for reducing
deferments, forbearances, and defaults on student loan
repayments.
(2) Eligible entity.--Except as provided in subsection (e),
in this section, the term ``eligible entity'' means--
(A) an institution of higher education entity;
(B) an entity that services loans made, insured, or
guaranteed under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.); or
(C) a nonprofit organization that has--
(i) substantial experience in administering
student loan counseling; or
(ii) demonstrated success in reducing
deferments, forbearances, and defaults on
student loan repayments.
(3) Reservation for nonprofit servicers.--From amounts made
available to carry out this section, the Secretary shall
reserve not less than 10 percent to award grants under
paragraph (1) to eligible entities that are nonprofit student
loan servicers.
(b) Application.--An eligible entity that desires to receive a
grant under this section shall submit an application to the Secretary
at such time, in such manner, and containing such information as the
Secretary may require.
(c) Activities.--
(1) In general.--An eligible entity that receives a grant
under this section shall use the grant funds to establish non-
traditional outreach programs and initiatives that may include
the following:
(A) New or improved pre-college loan entrance
counseling and financial literacy sessions.
(B) New or improved exit counseling for student
loan borrowers.
(C) Train students in how to use the National
Student Loan Data System established under section 485B
of the Higher Education Act of 1965 (20 U.S.C. 1092b).
(D) At least 1 check-in while a student loan
borrower is enrolled in the academic program for which
the student has taken out a loan (which shall occur not
earlier than half way through completion of such
academic program), which check-in shall provide the
borrower with an update on the borrower's student loan
status and information on how the outreach program can
serve as an information resource for the borrower.
(E) Annual follow-ups with student loan borrowers
after the borrowers are no longer enrolled in the
academic program for which the student has taken out a
loan by attempting to contact the borrowers by phone,
email, mail, or in person and providing continued
guidance and counseling and serving as an information
resource.
(F) Follow-ups once a student loan borrower reaches
a certain level of delinquency on repayment of such
loan, as determined by the Secretary.
(2) Private loans.--An eligible entity that receives a
grant under this section shall work to reduce defaults on
private education loan debt.
(d) Supplement Not Supplant.--An eligible entity shall use grant
funds received under this section only to supplement the funds that
would, in the absence of such grant funds, be made available from non-
Federal sources for the activities described in subsection (c), and not
to supplant such funds.
(e) Continuation of Grant Awards.--
(1) In general.--If the Secretary determines that the pilot
program established under this section has been successful in
reducing deferments, forbearances, and defaults on student loan
repayments, the Secretary may continue to award competitive
grants beyond the initial pilot program period in accordance
with this subsection.
(2) Authorization.--The Secretary shall award grants under
this subsection on a competitive basis to eligible entities
described in paragraph (3) who achieve specific performance
outcomes and criteria in reducing deferments, forbearances, and
defaults on student loan repayments. Projects funded by grants
under this subsection shall be referred to as either Pay-for-
Performance or Pay-for-Success projects, as set forth in
paragraph (3).
(3) Eligible entity.--To be eligible to receive a grant
under this subsection, an entity shall be an entity described
in subparagraph (A), (B), or (C) of subsection (a)(2) that--
(A) in the case of an entity seeking to carry out a
Pay-for-Performance project, agrees to be reimbursed
under the grant primarily on the basis of achievement
of specified performance outcomes and criteria
established by the Secretary under paragraph (4); or
(B) in the case of an entity seeking to carry out a
Pay-for-Success project--
(i) enters into a partnership with an
investor, such as a philanthropic organization
that provides funding for a specific project to
address reducing deferments, forbearances, and
defaults on student loan repayments; and
(ii) agrees to be reimbursed under the
grant only if the project achieves specified
performance outcomes and criteria established
by the Secretary under paragraph (4).
(4) Performance outcomes and criteria.--Not later than 6
months after the completion of the pilot program, the Secretary
shall establish and publish on the Web site of the Department
of Education specific performance measures, which include
performance outcomes and criteria, for the initial
qualification and reimbursement of eligible entities to receive
a grant under this subsection.
(5) Period of availability for pay-for-success projects.--
Funds appropriated to carry out Pay-for-Success projects under
this subsection shall, upon obligation, remain available for
disbursement until expended, notwithstanding section 1552 of
title 31, United States Code, and, if later deobligated, in
whole or in part, be available until expended under additional
Pay-for-Success grants under this subsection.
(f) Reports.--
(1) Eligible entities.--An eligible entity that receives a
grant under this section shall submit an annual report to the
Secretary that describes the use of grant funds and details the
results of the activities conducted with such grant funds.
(2) Secretary.--
(A) In general.--The Secretary shall submit a
report to Congress that details the results of the
program funded under this section and describes best
practices in non-traditional outreach programs that
reduce deferments, forbearances, and defaults on
student loan repayments.
(B) Report available publicly.--The Secretary shall
make the report described in subparagraph (A) publicly
available on the Web site of the Department of
Education.
<all>
Introduced in Senate
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
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