SEC. 2. VOLUNTARY, FLEXIBLE AGREEMENTS. 
(a) IN GENERAL.—Section 428A of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1078–1) is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c), the fol-
lowing: 
‘‘(d) SUPPLEMENTAL STUDENT LOAN SERVICES.— 
‘‘(1) IN GENERAL.—Not later than 9 months 
after the date of enactment of the Student Loan De-
fault Prevention Act and notwithstanding any other 
provision of this part, the Secretary shall, upon the 
request of an eligible guaranty agency, enter into a 
voluntary, flexible agreement with the guarantee 
agency, or revise the voluntary, flexible agreement 
previously entered into with the guarantee agency 
under this section, to provide for the services de-
scribed in paragraph (3) for borrowers (including 
potential borrowers, if applicable) of loans made 
under this part or part D. 
‘‘(2) ELIGIBILITY.—For the purposes of this 
subsection, an eligible guaranty agency is a guaranty 
agency that has extensive and relevant experience 
and demonstrated effectiveness in providing the 
services described in paragraph (3). 
‘‘(3) SERVICES.— 
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‘‘(A) IN GENERAL.—The services described 
in this paragraph for borrowers (including po-
tential borrowers, if applicable) of loans made 
under this part or part D may include— 
‘‘(i) delinquency prevention and de-
fault aversion activities; 
‘‘(ii) collection of defaulted loans; 
‘‘(iii) monitoring of institutions par-
ticipating in the program under part D; 
‘‘(iv) training of financial aid officials; 
and 
‘‘(v) informational outreach to schools 
and students in support of access to higher 
education and financial literacy. 
‘‘(B) EXISTING LOCAL SERVICES.—In car-
rying out the services described in subpara-
graph (A), an eligible guarantee agency shall 
provide localized services directly or through 
partnerships with other eligible guarantee agen-
cies to assist borrowers and institutions of high-
er education. 
‘‘(4) REASONABLE
FEES.—An agreement en-
tered into or revised under this subsection shall in-
clude a provision regarding the fees that the Sec-
retary shall pay to an eligible guarantee agency for 
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carrying out services under the agreement. The de-
termination of such fees shall be cost neutral and 
take into account savings resulting from the provi-
sion of such services as reasonably projected by the 
Secretary. 
‘‘(5) PUBLIC
NOTICE.—The Secretary shall 
publish in the Federal Register a notice to all guar-
anty agencies that sets forth— 
‘‘(A) an invitation for the guaranty agen-
cies to enter into or revise agreements under 
this subsection; and 
‘‘(B) the criteria that the Secretary will 
use for selecting the guaranty agencies with 
which the Secretary will enter into, or revise, 
agreements under this subsection. 
‘‘(6) 
AGREEMENT
NOTICE.—The 
Secretary 
shall notify the members of the authorizing commit-
tees not later than 30 days prior to concluding an 
agreement under this subsection. 
‘‘(7) PUBLIC AVAILABILITY.—The text of any 
voluntary flexible agreements entered into or revised 
under this subsection shall be readily available to the 
public.’’. 
(b) CONFORMING AMENDMENT.—Section 456 of the 
Higher Education Act of 1965 (20 U.S.C. 1087f) is 
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amended by inserting ‘‘or section 428A(d)’’ after ‘‘sections 
428(b)) and (c)’’. 
Æ 
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