Simplifying Access to Student Loan Information Act of 2014

Summary: 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:  the total amount and type of each loan; the interest rate on each loan;  information regarding the borrower that the Secretary deems necessary to ensure the electronic exchange of data between the borrower and the System; contact information regarding the lender and servicer of each loan; 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; and  the date the borrower completes repayment.  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.

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.