II 

116TH CONGRESS 

1ST SESSION S. 720 

To require the student loan ombudsman of the Department of Education 

to provide student loan data to the Bureau of Consumer Financial 

Protection, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 7, 2019 

Mr. UDALL (for himself, Ms. WARREN, Mr. BLUMENTHAL, Mr. BROWN, Mr. 

VAN HOLLEN, Mr. SCHATZ, Ms. HARRIS, Ms. KLOBUCHAR, Ms. 

DUCKWORTH, and Mr. MENENDEZ) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

A BILL 

To require the student loan ombudsman of the Department 

of Education to provide student loan data to the Bureau 

of Consumer Financial Protection, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CFPB Student Loan 

5 Integrity and Transparency Act of 2019’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The total amount of outstanding student 

2 loans just surpassed $1,500,000,000,000. 

3 (2) Student loans are the biggest category of 

4 consumer borrowing after mortgages. 

5 (3) Since the Consumer Financial Protection 

6 Act of 2010 (12 U.S.C. 5481 et seq.) established the 

7 Consumer Financial Protection Bureau, the Bureau 

8 has fought to ensure families receive a fair shake as 

9 they strive for the American Dream. 

10 (4) The Consumer Financial Protection Act of 

11 2010 established the Consumer Financial Protection 

12 Bureau’s Office of Students and Young Consumers 

13 in 2012 to assist students who are mistreated or 

14 misled by predatory lenders. 

15 (5) Since its creation, the Office of Students 

16 and Young Consumers, led by the Student Loan 

17 Ombudsman, has defended military families in the 

18 United States from predatory lenders and for-profit 

19 colleges, and other unscrupulous businesses. 

20 (6) The Office of Students and Young Con21 sumers helped tens of thousands of active-duty mili22 tary service members who were being overcharged 

23 for student loans, and coordinating with the United 

24 States Justice Department, succeeded in returning 


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1 $60,000,000 to the service members, and required 

2 the industry to improve its practices. 

3 (7) The Office of Students and Young Con4 sumers has collected and analyzed hundreds of thou5 sands of student complaints. 

6 (8) The Office of Students and Young Con7 sumers has recovered more than $750,000,000 on 

8 behalf of defrauded students. 

9 (9) The Office of Students and Young Con10 sumers has been instrumental in the shutdown of 

11 for-profit universities and colleges that had been ac12 cused of predatory practices. 

13 (10) The Office of Students and Young Con14 sumers collected data and authored a report that 

15 showed large banks overcharged college students fees 

16 that were higher than many of their competitors. 

17 The report remained unpublished by the Administra18 tion until a recent FOIA request opened it to the 

19 public. 

20 (11) The Department of Education Office of 

21 Inspector General released a concerning report on 

22 February 12, 2019, that highlighted the alarming 

23 frequency at which student loan contractors and 

24 vendors engaged in noncompliance with Federal re25 quirements for servicing student loans. 


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1 SEC. 3. DEPARTMENT OF EDUCATION STUDENT LOAN IN2 FORMATION. 

3 Section 141(f)(3) of the Higher Education Act of 

4 1965 (20 U.S.C. 1018(f)(3)) is amended— 

5 (1) by redesignating subparagraphs (A) and 

6 (B) as subparagraphs (B) and (C), respectively; and 

7 (2) by inserting before subparagraph (B) the 

8 following: 

9 ‘‘(A) provide information relating to stu10 dent loans to the Director of the Consumer Fi11 nancial Protection Bureau or the ombudsman 

12 of the Consumer Financial Protection Bureau 

13 designated under section 1035 of the Consumer 

14 Financial Protection Act of 2010 (12 U.S.C. 

15 5535) as requested by the Director of the Con16 sumer Financial Protection Bureau or that om17 budsman;’’. 

18 SEC. 4. STUDENT LOAN CONTRACTOR AND VENDOR AGREE19 MENTS. 

20 Part G of title IV of the Higher Education Act of 

21 1965 (20 U.S.C. 1088 et seq.) is amended by inserting 

22 after section 486A the following: 

23 ‘‘SEC. 486B. CONTRACTOR AND VENDOR AGREEMENTS. 

24 ‘‘The Secretary shall not enter into an agreement 

25 with a contractor or vendor that services loans under this 

26 title unless, as part of that agreement, such contractor or 


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1 vendor asserts that the contractor or vendor will provide 

2 information to the Director of the Consumer Financial 

3 Protection Bureau or the ombudsman of the Consumer Fi4 nancial Protection Bureau designated under section 1035 

5 of the Consumer Financial Protection Act of 2010 (12 

6 U.S.C. 5535) as requested by the Director of the Con7 sumer Financial Protection Bureau or that ombudsman.’’. 

8 SEC. 5. DUTY TO PROVIDE ADEQUATE STAFFING; MEMO9 RANDA OF UNDERSTANDING. 

10 (a) DUTY TO PROVIDE ADEQUATE STAFFING.—Sec11 tion 1013(a)(1) of the Consumer Financial Protection Act 

12 of 2010 (12 U.S.C. 5493(a)(1)) is amended by adding at 

13 the end the following: 

14 ‘‘(D) DUTY TO PROVIDE ADEQUATE

15 STAFFING.—Notwithstanding subparagraph 

16 (A), the Director shall ensure that each specific 

17 functional unit and office described under sub18 sections (b), (c), (d), (e), and (g) and any other 

19 unit and office with supervisory and enforce20 ment duties, is provided with sufficient staff to 

21 carry out the functions, duties, and coordina22 tion of that unit or office, as applicable.’’. 

23 (b) MEMORANDA OF UNDERSTANDING.— 

24 (1) REESTABLISHMENT OF MEMORANDA OF UN25 DERSTANDING.—The memoranda of understanding 


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1 between the Bureau of Consumer Financial Protec2 tion and the Department of Education entitled 

3 ‘‘Memorandum of Understanding Between the Bu4 reau of Consumer Financial Protection and the U.S. 

5 Department of Education Concerning the Sharing of 

6 Information’’ (October 19, 2011) and ‘‘Memo7 randum of Understanding Concerning Supervisory 

8 and Oversight Cooperation and Related Information 

9 Sharing Between the U.S. Department of Education 

10 and the Consumer Financial Protection Bureau’’ 

11 (January 9, 2014)— 

12 (A) shall remain in effect and may not be 

13 terminated by any party to such memoranda; 

14 and 

15 (B) may only be amended or revised if the 

16 parties to the memoranda determine that such 

17 amendment or revision would promote better 

18 interagency coordination to the benefit of con19 sumers. 

20 (2) REPORT ON CURRENT MOUS.—Not later 

21 than the end of the 30-day period beginning on the 

22 date of enactment of this Act, the Director of the 

23 Bureau of Consumer Financial Protection shall sub24 mit to the Committee on Banking, Housing, and 

25 Urban Affairs of the Senate and the Committee on 


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1 Financial Services of the House of Representatives 

2 a report listing— 

3 (A) each memorandum of understanding in 

4 effect on November 24, 2017, to which the Bu5 reau of Consumer Financial Protection was a 

6 party; 

7 (B) any changes made to a memorandum 

8 described in subparagraph (A) after November 

9 24, 2017, including any memorandum of under10 standing rescinded since that date; and 

11 (C) a justification for each change or re12 scission described in subparagraph (B). 

13 (3) SEMI-ANNUAL REPORT ON MOUS.—Section 

14 1016(c) of the Consumer Financial Protection Act 

15 of 2010 (12 U.S.C. 5496(c)) is amended— 

16 (A) in paragraph (8), by striking ‘‘and’’ at 

17 the end; 

18 (B) in paragraph (9), by striking the pe19 riod at the end and inserting a semicolon; and 

20 (C) by adding at the end the following: 

21 ‘‘(10) a list of each memorandum of under22 standing in effect, as of the date on which the report 

23 is submitted, to which the Bureau is a party; 

24 ‘‘(11) any changes made to a memorandum of 

25 understanding to which the Bureau is a party after 


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1 the date on which the previous report required under 

2 subsection (b) was submitted; and 

3 ‘‘(12) a justification for each change described 

4 in paragraph (11).’’. 

Æ 


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