cepted service, as described in subsection 
(h)(3)) with such expertise as is necessary to 
conduct investigations, respond to allegations 
and complaints, and enforce compliance with 
laws governing Federal student financial assist-
ance programs under title IV. 
‘‘(5) DIVISIONS.— 
‘‘(A) IN GENERAL.—The enforcement unit 
shall have separate divisions with the following 
focus areas: 
‘‘(i) An investigations division to in-
vestigate potential or actual misconduct at 
institutions of higher education, third 
party servicers that contract with such in-
stitutions, and third party contractors. 
‘‘(ii) A division focused on evaluating 
the claims of borrowers who assert a de-
fense to repayment of Federal student 
loans, or groups of borrowers who qualify 
to assert such a defense to repayment, 
under section 455(h). 
‘‘(iii) A division focused on oversight 
of the Jeanne Clery Disclosure of Campus 
Security Policy and Campus Crime Statis-
tics Act, the reporting of crime and fire 
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statistics by institutions of higher edu-
cation, and the oversight and enforcement 
of section 120 (relating to drug and alco-
hol abuse prevention). 
‘‘(iv) A division to administer the Sec-
retary’s authority to fine, limit, suspend, 
terminate, or take action against institu-
tions of higher education, third party 
servicers that contract with such institu-
tions, and third party contractors, partici-
pating in the Federal student financial as-
sistance programs under title IV. 
‘‘(v) A division that administers a pro-
gram of compliance monitoring and over-
sight of institutions of higher education, 
third party servicers that contract with 
such institutions, and third party contrac-
tors, including systems and procedures to 
support the eligibility, certification, and 
oversight of program participants, for all 
institutions of higher education partici-
pating in the Federal student financial as-
sistance programs under title IV. 
‘‘(vi) Any other division that the Chief 
Enforcement Officer, in coordination with 
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the Chief Operating Officer and the Sec-
retary, determines is necessary. 
‘‘(B) REPORTING.—The staff of each divi-
sion described in subparagraph (A) shall report 
to the Chief Enforcement Officer. 
‘‘(6) ACTIONS RECOMMENDED.—The Chief En-
forcement Officer may recommend, as appropriate to 
the particular circumstance, that the Chief Oper-
ating Officer— 
‘‘(A) terminate, suspend, or limit an insti-
tution of higher education, a third party 
servicer that contracts with such institution, or 
a third party contractor, from participation in 
one or more programs under title IV (in accord-
ance with section 489A), or provisionally certify 
such participation (in accordance to section 
498(h)); 
‘‘(B) impose a civil penalty in accordance 
with section 489A; 
‘‘(C) make a recommendation to the Sec-
retary about whether to approve or deny the 
claims of borrowers, including groups of bor-
rowers, who assert a defense to repayment in 
accordance with section 455(h); or 
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‘‘(D) carry out any other enforcement ac-
tivity applicable to the Department under sec-
tion 489A. 
‘‘(7) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘institution of higher edu-
cation’ has the meaning given that term in sec-
tion 102; and 
‘‘(B) the term ‘third party servicer’ has the 
meaning given that term in section 481(c).’’. 
SEC. 204. ESTABLISHMENT AND MAINTENANCE OF COM-
PLAINT RESOLUTION AND TRACKING SYS-
TEM. 
Title I (20 U.S.C. 1001 et seq.) is amended by adding 
at the end the following new part: 
‘‘PART F—COMPLAINT TRACKING SYSTEM 
‘‘SEC. 161. COMPLAINT TRACKING SYSTEM. 
‘‘(a) IN GENERAL.— 
‘‘(1) IN GENERAL.—The Secretary shall main-
tain a complaint tracking system that includes a sin-
gle, toll-free telephone number and a website to fa-
cilitate the centralized collection of, monitoring of, 
and response to complaints and reports (including 
evidence, as available) of suspicious activity (such as 
unfair, deceptive, or abusive acts or practices) re-
garding— 
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‘‘(A) Federal student financial aid and the 
servicing of postsecondary education loans by 
loan servicers; 
‘‘(B) educational practices and services of 
institutions of higher education; and 
‘‘(C) the recruiting and marketing prac-
tices of institutions of higher education. 
‘‘(2) DEFINITIONS.—In this section— 
‘‘(A) the term ‘institution of higher edu-
cation’ has the meaning given that term in sec-
tion 102; and 
‘‘(B) the term ‘recruiting and marketing 
activities’ means activities described in section 
126(d)(2) (as added by section 301 of the Pre-
venting Risky Operations from Threatening the 
Education and Career Trajectories of Students 
Act of 2019). 
‘‘(b) COMPLAINTS.—Complaints and reports of sus-
picious activity submitted to the tracking system by stu-
dents, borrowers of student loans, staff, or the general 
public— 
‘‘(1) may remain anonymous, if the complain-
ant so chooses; and 
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‘‘(2) may describe problems that are systematic 
in nature and not associated with a particular stu-
dent. 
‘‘(c) ESTABLISHMENT OF COMPLAINT TRACKING OF-
FICE.—The Secretary shall establish within the Depart-
ment an office whose functions shall include establishing 
and administering the complaint tracking system, and 
widely disseminating information about the complaint 
tracking system, established under this subsection. The 
Secretary shall— 
‘‘(1) to the extent necessary, combine and con-
solidate the other offices and functions of the De-
partment to ensure that the office established under 
this subsection is the single point of contact for stu-
dents and borrowers with complaints or reports of 
suspicious activity regarding Federal student finan-
cial aid, student loan servicers, educational practices 
and services of institutions of higher education, and 
recruiting and marketing activities of institutions of 
higher education; and 
‘‘(2) to the extent practicable, ensure that the 
office established under this subsection will work 
with the Student Loan Ombudsman appointed in ac-
cordance with section 141(f) and the Student Loan 
Ombudsman of the Bureau of Consumer Financial 
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Protection to assist borrowers of Federal student 
loans that submit complaints or reports of suspicious 
activity to the complaint tracking system. 
‘‘(d) HANDLING OF COMPLAINTS.— 
‘‘(1) TIMELY RESPONSE TO COMPLAINTS.—The 
Secretary shall establish, in consultation with the 
heads of appropriate agencies (including the Direc-
tor of the Bureau of Consumer Financial Protec-
tion), reasonable procedures to provide a response to 
complainants not more than 90 days after receiving 
a complaint in the complaint tracking system, in 
writing where appropriate. Each response shall in-
clude a description of— 
‘‘(A) the steps that have been taken by the 
Secretary in response to the complaint or report 
of suspicious activity; 
‘‘(B) any responses received by the Sec-
retary from the institution of higher education 
or from a servicer; and 
‘‘(C) any additional actions that the Sec-
retary has taken, or plans to take, in response 
to the complaint or report of suspicious activity. 
‘‘(2) TIMELY RESPONSE TO SECRETARY BY IN-
STITUTION
OF
HIGHER
EDUCATION
OR
LOAN 
SERVICER.—If the Secretary determines that it is 
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necessary, the Secretary shall notify an institution of 
higher education or loan servicer that is the subject 
of a complaint or report of suspicious activity 
through the complaint tracking system under this 
subsection regarding the complaint or report and di-
rectly address and resolve the complaint or report in 
the system. Not later than 60 days after receiving 
such notice, such institution or loan servicer shall 
provide a response to the Secretary concerning the 
complaint or report, including— 
‘‘(A) the steps that have been taken by the 
institution or loan servicer to respond to the 
complaint or report; 
‘‘(B) all responses received by the institu-
tion or loan servicer from the complainant; and 
‘‘(C) any additional actions that the insti-
tution or loan servicer has taken, or plans to 
take, in response to the complaint or report. 
‘‘(3) FURTHER INVESTIGATION.—The Secretary 
may, in the event that the complaint is not ade-
quately resolved or addressed by the responses of the 
institution of higher education or loan servicer under 
paragraph (2), ask additional questions of such in-
stitution or loan servicer or seek additional informa-
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tion from or action by the institution or loan 
servicer. 
‘‘(4) PROVISION OF INFORMATION.— 
‘‘(A) IN GENERAL.—An institution of high-
er education or loan servicer shall, in a timely 
manner, comply with a request by the Secretary 
for information in the control or possession of 
such institution or loan servicer concerning a 
complaint or report of suspicious activity re-
ceived by the Secretary under this subsection, 
including supporting written documentation, 
subject to subparagraph (B). 
‘‘(B) 
EXCEPTIONS.—An 
institution 
of 
higher education or loan servicer shall not be 
required to make available under this sub-
section— 
‘‘(i) any nonpublic or confidential in-
formation, including any confidential com-
mercial information; 
‘‘(ii) any information collected by the 
institution for the purpose of preventing 
fraud or detecting or making any report 
regarding other unlawful or potentially un-
lawful conduct; or 
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‘‘(iii) any information required to be 
kept confidential by any other provision of 
law. 
‘‘(5) COMPLIANCE.—An institution of higher 
education or loan servicer shall comply with the re-
quirements to provide responses and information, in 
accordance with this subsection, as a condition of re-
ceiving funds under title IV or as a condition of the 
contract with the Department, as applicable. 
‘‘(e) TRANSPARENCY.— 
‘‘(1) COLLECTING AND SHARING INFORMATION 
WITH FEDERAL, STATE, AND NATIONALLY RECOG-
NIZED ACCREDITING AGENCIES.—In accordance with 
section 444 of the General Education Provisions Act 
(20 U.S.C. 1232g) (commonly referred to as the 
‘Family Educational Rights and Privacy Act of 
1974’) and other laws, the Secretary shall coordinate 
with the heads of relevant Federal or State agencies 
or entities, and nationally recognized accrediting 
agencies or associations recognized by the Secretary 
pursuant to section 496 to— 
‘‘(A) collect any complaints and reports of 
suspicious activity described in subsection 
(a)(1) from such agencies, entities, or associa-
tions; and 
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‘‘(B) route complaints and reports received 
by the complaint tracking system under this 
section and complaints and reports collected in 
accordance with subparagraph (A) to the De-
partment, the Department of Justice, the De-
partment of Defense, the Department of Vet-
erans Affairs, the Federal Trade Commission 
Consumer Sentinel Network, the Bureau of 
Consumer Financial Protection, any equivalent 
State agency, or the relevant nationally recog-
nized accrediting agency or association. 
‘‘(2) INTERACTION WITH EXISTING COMPLAINT 
SYSTEMS.—To the extent practicable, all procedures 
established under this section, and all coordination 
carried out under paragraph (1), shall be established 
and carried out in accordance with the complaint 
tracking systems established under Executive Order 
13607 (77 Fed. Reg. 25861; relating to establishing 
principles of excellence for educational institutions 
serving servicemembers, veterans, spouses, and other 
family members). 
‘‘(3) PUBLIC INFORMATION.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
on an annual basis, publish on the website of 
the Department information on the complaints 
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and reports of suspicious activity received for 
each institution of higher education or loan 
servicer under this subsection, including— 
‘‘(i) the number of complaints and re-
ports received; 
‘‘(ii) the types of complaints and re-
ports received; and 
‘‘(iii) where applicable, information 
about the resolution of the complaints and 
reports. 
‘‘(B) DATA PRIVACY.—In carrying out sub-
paragraph (A), the Secretary shall— 
‘‘(i) comply with applicable data pri-
vacy laws and regulations; and 
‘‘(ii) ensure that personally identifi-
able information is not shared. 
‘‘(4) REPORTS.—Each year, the Secretary shall 
prepare and submit to Congress a report describ-
ing— 
‘‘(A) the types and nature of complaints or 
reports the Secretary has received under this 
section; 
‘‘(B) the extent to which complainants are 
receiving adequate resolution pursuant to this 
section; 
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‘‘(C) whether particular types of com-
plaints or reports are more common in a given 
sector of institutions of higher education or 
with particular loan servicers; 
‘‘(D) any legislative recommendations that 
the Secretary determines are necessary to bet-
ter assist students and families regarding the 
activities described in subsection (a)(1); and 
‘‘(E) the institutions of higher education 
and loan servicers with the highest volume of 
complaints and reports, as determined by the 
Secretary.’’. 
SEC. 205. BORROWER DEFENSE TO REPAYMENT. 
Section 455(h) (20 U.S.C. 1087e) is amended to read 
as follows: 
‘‘(h) BORROWER DEFENSES.— 
‘‘(1) APPLICATION.— 
‘‘(A) IN GENERAL.—A borrower of a loan 
under this part or part B may submit an appli-
cation to the Secretary claiming a defense to re-
payment of the loan (as described in paragraph 
(7)) (referred to in this subsection as a ‘bor-
rower defense’), at any time and regardless of 
the current payment status of the loan. The ap-
plication shall— 
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‘‘(i) certify that the borrower received 
the proceeds of a loan or loans issued 
under this part or part B to attend an eli-
gible institution of higher education; 
‘‘(ii) provide evidence that supports 
the borrower defense; 
‘‘(iii) indicate whether the borrower 
has made a claim with respect to the infor-
mation underlying the borrower defense 
with any third party, such as the holder of 
a performance bond or a tuition recovery 
program, and, if so, the amount of any 
payment received by the borrower or cred-
ited to the borrower’s loan obligation; and 
‘‘(iv) provide any other information or 
supporting documentation reasonably re-
quested by the Secretary. 
‘‘(B) 
BORROWER
DEFENSE
FOR
A 
GROUP.— 
‘‘(i) IN GENERAL.— 
‘‘(I) GROUP DEFENSE.—The Sec-
retary may initiate and carry out a 
process to determine whether a group 
of borrowers, identified by the Sec-
retary, has a borrower defense. 
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‘‘(II) 
IDENTIFICATION
OF 
GROUP.—The Secretary may— 
‘‘(aa) identify members of 
such a group from individually 
filed 
applications 
submitted 
under subparagraph (A); or 
‘‘(bb) if the Secretary deter-
mines that there are common 
facts and claims that apply to 
borrowers who have not filed an 
application under subparagraph 
(A), identify such members based 
on information in the possession 
of the Secretary. 
‘‘(III) REPRESENTATIVE.—In the 
case of a group identified by the Sec-
retary under this clause, the Secretary 
shall designate a Department official 
to present the group’s claim in the 
process described under paragraph 
(2). 
‘‘(ii) APPLICATION FOR A GROUP.—A 
State attorney general or nonprofit legal 
assistance organization that represents 
borrowers may submit an application de-
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scribed in subparagraph (A) on behalf of a 
group of borrowers whose claims are simi-
lar or identical, without requiring an appli-
cation from each individual borrower in 
that group or class. 
‘‘(iii) NOTIFICATION.— 
‘‘(I) Upon initiation of the proc-
ess under clause (i) or receipt of an 
application under clause (ii), the Sec-
retary shall provide the borrowers who 
may be members of a group borrower 
defense claim with a written notice of 
such initiation or receipt, as the case 
may be, and an option to opt out of 
the proceeding under this subsection 
for that group. 
‘‘(II) Upon receipt of an applica-
tion on behalf of a group of borrowers 
under clause (ii), the Secretary shall 
provide the entity submitting that ap-
plication with a written determination, 
not later than 120 days after receipt 
of the application, stating— 
‘‘(aa) whether the Secretary 
will forgo the review of claims for 
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individual borrowers and instead 
will review the claims for the 
group described in that applica-
tion (or for a subset of borrowers 
in that group, if applicable); 
‘‘(bb) if the Secretary deter-
mines not to evaluate the applica-
tion for that group (or not to 
evaluate the application for all 
the requested members of that 
group), the reasons for the deter-
mination; and 
‘‘(cc) that the Secretary may 
reconsider the determination in 
item (bb) if presented with new 
evidence that would allow for the 
consideration of claims for the 
group described in the applica-
tion. 
‘‘(iv) RELIEF.—If the Secretary ap-
proves a group application for relief under 
this subsection, all borrowers in the group 
who have not affirmatively opted out are 
entitled to relief, regardless of whether an 
individual borrower filed an application. 
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‘‘(2) PROCESS.— 
‘‘(A) IN
GENERAL.—Upon receipt of an 
application from an individual borrower or upon 
receipt of an application from a group of bor-
rowers or initiation of a claim on behalf of a 
group of borrowers, as described in paragraph 
(1)(B), the Secretary shall carry out the fol-
lowing activities: 
‘‘(i) With regard to the borrower’s 
payment status (including each borrower 
in such group who does not opt out under 
paragraph (1)(B)(iii)(I)), the Secretary 
shall— 
‘‘(I) grant an administrative for-
bearance 
without 
requiring 
docu-
mentation from the borrower, includ-
ing a forbearance for any period nec-
essary for the Secretary to determine 
the borrower’s eligibility for discharge; 
‘‘(II) notify the borrower of the 
option to decline that forbearance and 
continue making payments on the 
loan; 
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‘‘(III) provide the borrower with 
information about the availability of 
an income-based repayment plan; and 
‘‘(IV) if the borrower’s loan is in 
default— 
‘‘(aa) suspend collection ac-
tivity on the loan, including any 
garnishments or offsets, until a 
decision on the borrower’s claim 
is issued; 
‘‘(bb) notify the borrower of 
the suspension of collection activ-
ity; 
‘‘(cc) notify the borrower 
that if the Secretary determines 
the borrower does not qualify for 
a discharge of the loan, collection 
activity will resume unless the 
borrower chooses to make pay-
ments under any repayment plan, 
including 
income-based 
repay-
ment described under section 
493C; and 
‘‘(dd) notify the borrower 
that if the Secretary determines 
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the borrower does not qualify for 
a discharge of the loan, and if 
the borrower makes payments 
under any repayment plan, in-
cluding an income-based repay-
ment, as described in item (cc), 
the Secretary shall submit a re-
port to the consumer reporting 
agencies to which the Secretary 
previously made adverse credit 
reports with regard to the bor-
rower’s loan under this part or 
part B to remove the borrower’s 
record of default and the Sec-
retary shall refund any collection 
costs paid by the borrower subse-
quent to the borrower submitting 
an application under paragraph 
(1), but prior to the suspension 
of the collection activity, as de-
scribed in item (aa). 
‘‘(ii) With regard to the fact-finding 
process, the Secretary shall designate a 
Department official (which shall not be an 
official 
designated 
under 
paragraph 
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(1)(B)(i)(III) and shall be a staff member 
in the enforcement unit, in accordance 
with section 141(g)) to— 
‘‘(I) notify the institution of 
higher education of the borrower de-
fense application or the initiation of 
the borrower defense claim; 
‘‘(II) determine whether the bor-
rower has established a borrower de-
fense, which shall include— 
‘‘(aa) consideration of evi-
dence or argument presented by 
the borrower; and 
‘‘(bb) consideration of addi-
tional information, including— 
‘‘(AA) 
Department 
records; 
‘‘(BB) any response or 
submission from the institu-
tion; and 
‘‘(CC) any additional 
information; and 
‘‘(III) upon the borrower’s rea-
sonable request, identify and provide 
to the borrower any records the Sec-
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retary is considering as part of the 
borrower’s claim. 
‘‘(iii) Not later than 18 months after 
the date of receipt of an application under 
paragraph (1)(A) or (1)(B)(ii), or the initi-
ation of a claim under paragraph (1)(B)(i), 
as the case may be, the Secretary shall de-
termine if a borrower or group of bor-
rowers has a successful borrower defense 
claim. If the Secretary fails to issue a de-
termination by the date that is 18 months 
after the date of receipt of such application 
or initiation, the loan underlying the bor-
rower defense claim shall be automatically 
discharged. 
‘‘(B) INSTITUTION’S RESPONSE.—An insti-
tution shall provide information to the Sec-
retary, not later than 30 days after the date of 
a request by the Secretary, and as directed by 
the Secretary, regarding any response or sub-
mission that is requested from the Secretary re-
lating to a borrower defense claim. 
‘‘(3) STANDARD OF EVIDENCE.—A borrower de-
fense claim shall be approved under this subsection, 
if the Secretary finds that a preponderance of the 
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evidence shows that the borrower has established a 
borrower defense that meets the requirements of this 
subsection. 
‘‘(4) 
SUCCESSFUL
BORROWER
DEFENSE 
CLAIM.— 
‘‘(A) BORROWER RELIEF.—If a borrower 
is determined to have a borrower defense in ac-
cordance with this subsection, the Secretary 
shall— 
‘‘(i) discharge the borrower of the bor-
rower’s obligation to repay the loan (in-
cluding associated interest, costs, and fees 
that the borrower would otherwise be obli-
gated to pay) in regards to which there is 
a borrower defense; 
‘‘(ii) notify the borrower of the dis-
charge described in clause (i) and the other 
information described in subparagraph (C); 
‘‘(iii) retroactively waive any interest 
that accrued after the borrower submitted 
an application under this subsection; 
‘‘(iv) provide the borrower such fur-
ther relief as the Secretary determines is 
appropriate 
under 
the 
circumstances, 
which shall include— 
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‘‘(I) reimbursing the borrower for 
amounts paid toward the loan volun-
tarily or through enforced collection; 
and 
‘‘(II) determining that the bor-
rower is not in default on the loan 
and is eligible to receive assistance 
under title IV; and 
‘‘(v) not later than 30 days after the 
date of such determination, submit new re-
ports to consumer reporting agencies to 
which the Secretary previously made ad-
verse credit reports with regard to the bor-
rower’s loan under this part or part B. 
‘‘(B) AMOUNT OF LOAN DISCHARGE.— 
‘‘(i) IN GENERAL.—There shall be a 
presumption that on the finding of a suc-
cessful borrower defense claim, the full 
amount of the borrower’s loan shall be dis-
charged as described in subparagraph (A). 
If the Secretary determines that discharge 
of the full amount of the loan is not appro-
priate in a particular case, the Secretary 
shall provide the borrower with— 
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‘‘(I) a written explanation as to 
why partial relief is appropriate; and 
‘‘(II) if the borrower defense is a 
defense based on State law and de-
scribed in paragraph (7)(B)(i) or is a 
defense 
described 
in 
paragraph 
(7)(B)(ii) or (7)(B)(iii), include an as-
surance that the amount of relief is 
not less than the amount of relief that 
would be afforded under State law. 
‘‘(ii) SUBSTANTIAL
MISREPRESENTA-
TION.—Notwithstanding clause (i), in the 
case of a determination that a borrower 
defense based on paragraph (7)(B)(iv) has 
been established, the full amount of the 
borrower’s loan shall be discharged. 
‘‘(iii) LIMITATION.—The total amount 
of relief granted with respect to a borrower 
defense regarding a loan under this part or 
part B shall not exceed the amount of the 
loan under this part or part B, as the case 
may be, and any associated interest, costs, 
and fees. Such amount will be reduced by 
the amount of any refund, reimbursement, 
indemnification, restitution, compensatory 
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