II 

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. 

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 ‘‘Simplifying Access to 

5 Student Loan Information Act of 2014’’. 


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1 SEC. 2. AMENDMENT TO THE TRUTH IN LENDING ACT. 

2 (a) IN GENERAL.—Section 128(e) of the Truth in 

3 Lending Act (15 U.S.C. 1638(e)) is amended by adding 

4 at the end the following: 

5 ‘‘(12) NATIONAL STUDENT LOAN DATA SYS6 TEM.— 

7 ‘‘(A) IN GENERAL.—Each private edu8 cational lender shall— 

9 ‘‘(i) submit to the Secretary of Edu10 cation for inclusion in the National Stu11 dent Loan Data System established under 

12 section 485B of the Higher Education Act 

13 of 1965 (20 U.S.C. 1092b) information re14 garding each private education loan made 

15 by such lender that will allow for the elec16 tronic exchange of data between borrowers 

17 of private education loans and the System; 

18 and 

19 ‘‘(ii) in carrying out clause (i), ensure 

20 the privacy of private education loan bor21 rowers. 

22 ‘‘(B) INFORMATION TO BE SUBMITTED.— 

23 The information regarding private education 

24 loans required under subparagraph (A) to be 

25 included in the National Student Loan Data 


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1 System shall include the following if determined 

2 appropriate by the Secretary of Education: 

3 ‘‘(i) The total amount and type of 

4 each such loan made, including out5 standing interest and outstanding principal 

6 on such loan. 

7 ‘‘(ii) The interest rate of each such 

8 loan made. 

9 ‘‘(iii) Information regarding the bor10 rower that the Secretary of Education de11 termines is necessary to ensure the elec12 tronic exchange of data between borrowers 

13 of private education loans and the System. 

14 ‘‘(iv) Information, including contact 

15 information, regarding the lender that 

16 owns the loan. 

17 ‘‘(v) Information, including contact in18 formation, regarding the servicer that is 

19 handling the loan. 

20 ‘‘(vi) Information concerning the date 

21 of any default on the loan and the collec22 tion of the loan, including any information 

23 concerning the repayment status of any de24 faulted loan. 


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1 ‘‘(vii) Information regarding any 

2 deferment or forbearance granted on the 

3 loan. 

4 ‘‘(viii) The date of the completion of 

5 repayment by the borrower of the loan. 

6 ‘‘(ix) Any other information deter7 mined by the Secretary of Education to be 

8 necessary for the operation of the National 

9 Student Loan Data System. 

10 ‘‘(C) UPDATE.—Each private educational 

11 lender shall update the information regarding 

12 private education loans required under subpara13 graph (A) to be included in the National Stu14 dent Loan Data System on the same schedule 

15 as information is updated under the System 

16 under section 485B of the Higher Education 

17 Act of 1965 (20 U.S.C. 1092b).’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 subsection (a) shall apply to private education loans that 

20 were made for the 2011–2012 academic year or later. 

21 SEC. 3. AMENDMENT TO THE HIGHER EDUCATION ACT OF 

22 1965. 

23 Section 485B of the Higher Education Act of 1965 

24 (20 U.S.C. 1092b) is amended by adding at the end the 

25 following: 


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1 ‘‘(i) PRIVATE EDUCATION LOANS.— 

2 ‘‘(1) IN GENERAL.—The National Student 

3 Loan Data System established pursuant to sub4 section (a) shall contain the information required to 

5 be included under section 128(e)(12) of the Truth in 

6 Lending Act (15 U.S.C. 1638(e)(12)). 

7 ‘‘(2) COSIGNER.—Notwithstanding any other 

8 provision of law, the Secretary shall ensure that any 

9 cosigner of a private education loan for which infor10 mation is included in the National Student Loan 

11 Data System— 

12 ‘‘(A) is able to access the information in 

13 such System with respect to such private edu14 cation loan; and 

15 ‘‘(B) does not have access to any informa16 tion in such System with respect to any loan for 

17 which the cosigner has not cosigned. 

18 ‘‘(3) PRIVACY.—The Secretary shall ensure that 

19 a private educational lender— 

20 ‘‘(A) has access to the National Student 

21 Loan Data System only to submit information 

22 for such System regarding the private education 

23 loans of such lender; and 

24 ‘‘(B) may not see information in the Sys25 tem regarding the loans of any other lender. 


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1 ‘‘(j) REPAYMENT OPTIONS.—The Secretary shall es2 tablish a functionality within the National Student Loan 

3 Data System established pursuant to subsection (a) that 

4 enables a student borrower of a loan made, insured, or 

5 guaranteed under this title to input information necessary 

6 for the estimation of repayment amounts under the var7 ious repayment plans available to the borrower of such 

8 loan to compare such repayment plans.’’. 

9 SEC. 4. NON-TRADITIONAL OUTREACH PROGRAM. 

10 (a) PILOT PROGRAM AUTHORIZED.— 

11 (1) IN GENERAL.—The Secretary of Education 

12 (referred to in this section as the ‘‘Secretary’’) shall 

13 establish a 5-year pilot program to award grants, on 

14 a competitive basis, to eligible entities to establish or 

15 improve non-traditional outreach programs and ini16 tiatives with the goal of— 

17 (A) reducing deferments, forbearances, and 

18 defaults on student loan repayments; and 

19 (B) establishing best practices for reducing 

20 deferments, forbearances, and defaults on stu21 dent loan repayments. 

22 (2) ELIGIBLE ENTITY.—Except as provided in 

23 subsection (e), in this section, the term ‘‘eligible en24 tity’’ means— 


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1 (A) an institution of higher education enti2 ty; 

3 (B) an entity that services loans made, in4 sured, or guaranteed under title IV of the 

5 Higher Education Act of 1965 (20 U.S.C. 1070 

6 et seq.); or 

7 (C) a nonprofit organization that has— 

8 (i) substantial experience in admin9 istering student loan counseling; or 

10 (ii) demonstrated success in reducing 

11 deferments, forbearances, and defaults on 

12 student loan repayments. 

13 (3) RESERVATION FOR NONPROFIT

14 SERVICERS.—From amounts made available to carry 

15 out this section, the Secretary shall reserve not less 

16 than 10 percent to award grants under paragraph 

17 (1) to eligible entities that are nonprofit student 

18 loan servicers. 

19 (b) APPLICATION.—An eligible entity that desires to 

20 receive a grant under this section shall submit an applica21 tion to the Secretary at such time, in such manner, and 

22 containing such information as the Secretary may require. 

23 (c) ACTIVITIES.— 

24 (1) IN GENERAL.—An eligible entity that re25 ceives a grant under this section shall use the grant 


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1 funds to establish non-traditional outreach programs 

2 and initiatives that may include the following: 

3 (A) New or improved pre-college loan en4 trance counseling and financial literacy ses5 sions. 

6 (B) New or improved exit counseling for 

7 student loan borrowers. 

8 (C) Train students in how to use the Na9 tional Student Loan Data System established 

10 under section 485B of the Higher Education 

11 Act of 1965 (20 U.S.C. 1092b). 

12 (D) At least 1 check-in while a student 

13 loan borrower is enrolled in the academic pro14 gram for which the student has taken out a 

15 loan (which shall occur not earlier than half 

16 way through completion of such academic pro17 gram), which check-in shall provide the bor18 rower with an update on the borrower’s student 

19 loan status and information on how the out20 reach program can serve as an information re21 source for the borrower. 

22 (E) Annual follow-ups with student loan 

23 borrowers after the borrowers are no longer en24 rolled in the academic program for which the 

25 student has taken out a loan by attempting to 


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1 contact the borrowers by phone, email, mail, or 

2 in person and providing continued guidance and 

3 counseling and serving as an information re4 source. 

5 (F) Follow-ups once a student loan bor6 rower reaches a certain level of delinquency on 

7 repayment of such loan, as determined by the 

8 Secretary. 

9 (2) PRIVATE LOANS.—An eligible entity that re10 ceives a grant under this section shall work to re11 duce defaults on private education loan debt. 

12 (d) SUPPLEMENT NOT SUPPLANT.—An eligible enti13 ty shall use grant funds received under this section only 

14 to supplement the funds that would, in the absence of such 

15 grant funds, be made available from non-Federal sources 

16 for the activities described in subsection (c), and not to 

17 supplant such funds. 

18 (e) CONTINUATION OF GRANT AWARDS.— 

19 (1) IN GENERAL.—If the Secretary determines 

20 that the pilot program established under this section 

21 has been successful in reducing deferments, 

22 forbearances, and defaults on student loan repay23 ments, the Secretary may continue to award com24 petitive grants beyond the initial pilot program pe25 riod in accordance with this subsection. 


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1 (2) AUTHORIZATION.—The Secretary shall 

2 award grants under this subsection on a competitive 

3 basis to eligible entities described in paragraph (3) 

4 who achieve specific performance outcomes and cri5 teria in reducing deferments, forbearances, and de6 faults on student loan repayments. Projects funded 

7 by grants under this subsection shall be referred to 

8 as either Pay-for-Performance or Pay-for-Success 

9 projects, as set forth in paragraph (3). 

10 (3) ELIGIBLE ENTITY.—To be eligible to receive 

11 a grant under this subsection, an entity shall be an 

12 entity described in subparagraph (A), (B), or (C) of 

13 subsection (a)(2) that— 

14 (A) in the case of an entity seeking to 

15 carry out a Pay-for-Performance project, agrees 

16 to be reimbursed under the grant primarily on 

17 the basis of achievement of specified perform18 ance outcomes and criteria established by the 

19 Secretary under paragraph (4); or 

20 (B) in the case of an entity seeking to 

21 carry out a Pay-for-Success project— 

22 (i) enters into a partnership with an 

23 investor, such as a philanthropic organiza24 tion that provides funding for a specific 

25 project to address reducing deferments, 


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1 forbearances, and defaults on student loan 

2 repayments; and 

3 (ii) agrees to be reimbursed under the 

4 grant only if the project achieves specified 

5 performance outcomes and criteria estab6 lished by the Secretary under paragraph 

7 (4). 

8 (4) PERFORMANCE OUTCOMES AND CRI9 TERIA.—Not later than 6 months after the comple10 tion of the pilot program, the Secretary shall estab11 lish and publish on the Web site of the Department 

12 of Education specific performance measures, which 

13 include performance outcomes and criteria, for the 

14 initial qualification and reimbursement of eligible en15 tities to receive a grant under this subsection. 

16 (5) PERIOD OF AVAILABILITY FOR PAY-FOR17 SUCCESS PROJECTS.—Funds appropriated to carry 

18 out Pay-for-Success projects under this subsection 

19 shall, upon obligation, remain available for disburse20 ment until expended, notwithstanding section 1552 

21 of title 31, United States Code, and, if later 

22 deobligated, in whole or in part, be available until 

23 expended under additional Pay-for-Success grants 

24 under this subsection. 

25 (f) REPORTS.— 


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1 (1) ELIGIBLE ENTITIES.—An eligible entity 

2 that receives a grant under this section shall submit 

3 an annual report to the Secretary that describes the 

4 use of grant funds and details the results of the ac5 tivities conducted with such grant funds. 

6 (2) SECRETARY.— 

7 (A) IN GENERAL.—The Secretary shall 

8 submit a report to Congress that details the re9 sults of the program funded under this section 

10 and describes best practices in non-traditional 

11 outreach programs that reduce deferments, 

12 forbearances, and defaults on student loan re13 payments. 

14 (B) REPORT AVAILABLE PUBLICLY.—The 

15 Secretary shall make the report described in 

16 subparagraph (A) publicly available on the Web 

17 site of the Department of Education. 

Æ 


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