I 

116TH CONGRESS 

1ST SESSION H. R. 2833 

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 HOUSE OF REPRESENTATIVES 

MAY 17, 2019 

Ms. PORTER (for herself, Ms. BONAMICI, Mr. SARBANES, Mr. TAKANO, Ms. 

ADAMS, Mr. FOSTER, Ms. PRESSLEY, and Mr. LEVIN of Michigan) introduced the following bill; which was referred to the Committee on Education and Labor, and in addition to the Committee on Financial Services, 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 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’’. 


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1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) The total amount of outstanding student 

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

5 (2) Student loans are the biggest category of 

6 consumer borrowing after mortgages. 

7 (3) Since the Consumer Financial Protection 

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

9 Consumer Financial Protection Bureau, the Bureau 

10 has fought to ensure families receive a fair shake as 

11 they strive for the American Dream. 

12 (4) The Consumer Financial Protection Act of 

13 2010 created a Student Loan Ombudsman at the 

14 Consumer Financial Protection Bureau. In 2011, 

15 the Consumer Financial Protection Bureau estab16 lished an Office for Students and Young Consumers, 

17 led by the Student Loan Ombudsman, to assist stu18 dents who are mistreated or misled by predatory 

19 lenders. 

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

21 and Young Consumers, led by the Student Loan 

22 Ombudsman, has defended military families in the 

23 United States from predatory lenders and for-profit 

24 colleges, and other unscrupulous businesses. 

25 (6) The Office of Students and Young Con26 sumers helped tens of thousands of active-duty miliVerDate Sep 11 2014 04:16 May 30, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2833.IH H2833

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1 tary service members who were being overcharged 

2 for student loans, and coordinating with the United 

3 States Justice Department, succeeded in returning 

4 $60,000,000 to the service members, and required 

5 the industry to improve its practices. 

6 (7) The Office of Students and Young Con7 sumers has collected and analyzed hundreds of thou8 sands of student complaints. 

9 (8) The Office of Students and Young Con10 sumers has recovered more than $750,000,000 on 

11 behalf of defrauded students. 

12 (9) The Office of Students and Young Con13 sumers has been instrumental in the shutdown of 

14 for-profit universities and colleges that had been ac15 cused of predatory practices. 

16 (10) The Office of Students and Young Con17 sumers collected data and authored a report that 

18 showed large banks overcharged college students fees 

19 that were higher than many of their competitors. 

20 The report remained unpublished by the Administra21 tion until a recent FOIA request opened it to the 

22 public. 

23 (11) The Department of Education Office of 

24 Inspector General released a concerning report on 

25 February 12, 2019, that highlighted the alarming 


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1 frequency at which student loan contractors and 

2 vendors engaged in noncompliance with Federal re3 quirements for servicing student loans. 

4 SEC. 3. DEPARTMENT OF EDUCATION STUDENT LOAN IN5 FORMATION. 

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

7 1965 (20 U.S.C. 1018(f)(3)) is amended— 

8 (1) by redesignating subparagraphs (A) and 

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

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

11 following: 

12 ‘‘(A) provide information relating to stu13 dent loans to the Director of the Consumer Fi14 nancial Protection Bureau or the ombudsman 

15 of the Consumer Financial Protection Bureau 

16 designated under section 1035 of the Consumer 

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

18 5535) as requested by the Director of the Con19 sumer Financial Protection Bureau or that om20 budsman;’’. 

21 SEC. 4. STUDENT LOAN CONTRACTOR AND VENDOR AGREE22 MENTS. 

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

24 1965 (20 U.S.C. 1088 et seq.) is amended by inserting 

25 after section 486A the following: 


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

2 ‘‘The Secretary shall not enter into an agreement 

3 with a contractor or vendor that services loans under this 

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

5 vendor asserts that the contractor or vendor will provide 

6 information to the Director of the Consumer Financial 

7 Protection Bureau or the ombudsman of the Consumer Fi8 nancial Protection Bureau designated under section 1035 

9 of the Consumer Financial Protection Act of 2010 (12 

10 U.S.C. 5535) as requested by the Director of the Con11 sumer Financial Protection Bureau or that ombudsman.’’. 

12 SEC. 5. DUTY TO PROVIDE ADEQUATE STAFFING; MEMO13 RANDA OF UNDERSTANDING. 

14 (a) DUTY TO PROVIDE ADEQUATE STAFFING.—Sec15 tion 1013(a)(1) of the Consumer Financial Protection Act 

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

17 the end the following: 

18 ‘‘(D) DUTY TO PROVIDE ADEQUATE

19 STAFFING.—Notwithstanding subparagraph 

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

21 functional unit and office described under sub22 sections (b), (c), (d), (e), and (g) and any other 

23 unit and office with supervisory and enforce24 ment duties, is provided with sufficient staff to 

25 carry out the functions, duties, and coordina26 tion of that unit or office, as applicable.’’. 


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1 (b) MEMORANDA OF UNDERSTANDING.— 

2 (1) REESTABLISHMENT OF MEMORANDA OF UN3 DERSTANDING.—The memoranda of understanding 

4 between the Bureau of Consumer Financial Protec5 tion and the Department of Education entitled 

6 ‘‘Memorandum of Understanding Between the Bu7 reau of Consumer Financial Protection and the U.S. 

8 Department of Education Concerning the Sharing of 

9 Information’’ (October 19, 2011) and ‘‘Memo10 randum of Understanding Concerning Supervisory 

11 and Oversight Cooperation and Related Information 

12 Sharing Between the U.S. Department of Education 

13 and the Consumer Financial Protection Bureau’’ 

14 (January 9, 2014)— 

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

16 terminated by any party to such memoranda; 

17 and 

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

19 parties to the memoranda determine that such 

20 amendment or revision would promote better 

21 interagency coordination to the benefit of con22 sumers. 

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

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

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


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1 Bureau of Consumer Financial Protection shall sub2 mit to the Committee on Banking, Housing, and 

3 Urban Affairs of the Senate and the Committee on 

4 Financial Services of the House of Representatives 

5 a report listing— 

6 (A) each memorandum of understanding in 

7 effect on November 24, 2017, to which the Bu8 reau of Consumer Financial Protection was a 

9 party; 

10 (B) any changes made to a memorandum 

11 described in subparagraph (A) after November 

12 24, 2017, including any memorandum of under13 standing rescinded since that date; and 

14 (C) a justification for each change or re15 scission described in subparagraph (B). 

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

17 1016(c) of the Consumer Financial Protection Act 

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

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

20 the end; 

21 (B) in paragraph (9), by striking the pe22 riod at the end and inserting a semicolon; and 

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


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1 ‘‘(10) a list of each memorandum of under2 standing in effect, as of the date on which the report 

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

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

5 understanding to which the Bureau is a party after 

6 the date on which the previous report required under 

7 subsection (b) was submitted; and 

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

9 in paragraph (11).’’. 

Æ 


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