Stop Student Debt Relief Scams Technical Corrections Act
Bill: S.995 | Sponsor: Sen. Baldwin, Tammy (D-WI)
Policy area: Education

Summary:
Stop Student Debt Relief Scams Technical Corrections Act
This bill revises the requirements for third-party access to the central database for student aid (i.e., the National Student Loan Data System).
First, the bill directs the Department of Education (ED) to issue, by July 1, 2021, its guidance on the use of access devices.
Additionally, the bill provides ED with discretion to approve applications from authorized persons or entities for third-party data access to the system.
The bill also expands the categories of persons or entities that are authorized to access the system to include certain for-profit organizations.

To amend the Stop Student Debt Relief Scams Act of 2019 to make 
                         technical corrections.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Student Debt Relief Scams 
Technical Corrections Act''.

SEC. 2. GUIDANCE ON CRIMINAL PENALTIES.

    The Stop Student Debt Relief Scams Act of 2019 (Public Law 116-251) 
is amended in section 2(b) by striking ``The Secretary'' and inserting 
``Not later than July 1, 2021, the Secretary''.

SEC. 3. REQUIREMENTS FOR THIRD-PARTY DATA SYSTEM ACCESS.

    (a) Amendments.--Subsection (e) of section 485B of the Higher 
Education Act of 1965, as added by section 4(3) of the Stop Student 
Debt Relief Scams Act of 2019 (Public Law 116-251), is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``, at the discretion of the Secretary,'' 
        after ``may'';
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``means--'' and inserting ``means either of 
                the following:'';
                    (B) in subparagraph (A)--
                            (i) by striking ``a guaranty agency'' the 
                        first place such term appears and inserting ``A 
                        guaranty agency''; and
                            (ii) by striking ``; or'' and inserting a 
                        period; and
                    (C) by striking subparagraph (B) and inserting the 
                following:
                    ``(B)(i) An attorney, government, agency, or 
                organization described in any of subclauses (I) through 
                (IV) of clause (ii), who or that--
                            ``(I) is providing financial or student 
                        loan repayment services or counseling to a 
                        student, borrower, or parent;
                            ``(II) has not engaged in unfair, 
                        deceptive, or abusive practices (including an 
                        entity that is owned or operated by a person or 
                        entity that engaged in such practices), as 
                        determined by the Secretary;
                            ``(III) accesses the system only through a 
                        separate point of entry; and
                            ``(IV) has consent from the relevant 
                        student, borrower, or parent to access the 
                        system.
                    ``(ii)(I) A licensed attorney representing a 
                student, borrower, or parent.
                    ``(II) A Federal, State, local, or Tribal 
                government or agency.
                    ``(III) A nonprofit organization.
                    ``(IV) A for-profit organization--
                            ``(aa) authorized as a public benefit 
                        corporation to provide a public benefit of 
                        objective and accurate financial or student 
                        loan repayment services or counseling;
                            ``(bb) that is approved by the Secretary in 
                        accordance with paragraphs (3) and (4); and
                            ``(cc) that does not charge the student, 
                        borrower, or parent a fee or any other monetary 
                        charge for financial or student loan repayment 
                        services or counseling or any other services at 
                        any point.''; and
            (3) by adding at the end the following:
            ``(3) Discretion to approve applications.--Approval of 
        applications from authorized persons or entities for third-
        party data access shall be at the discretion of the Secretary 
        after consideration of such applications as the Secretary may 
        prescribe. Authorized access shall be for periods as the 
        Secretary may determine and may be terminated at the discretion 
        of the Secretary.
            ``(4) Consideration for for-profit organization approval to 
        access the system.--In considering applications for approval 
        for third-party data system access in accordance with this 
        subsection by a for-profit organization described in paragraph 
        (2)(B)(ii)(IV), the Secretary shall--
                    ``(A) consider how the no fee service or counseling 
                to the student, borrower, or parent is funded and 
                determine whether the organization provides financial 
                or student loan repayment services or counseling in the 
                best interest of students, borrowers, or parents, in 
                consultation with the Private Education Loan Ombudsman 
                of the Consumer Financial Protection Bureau (designated 
                pursuant to section 1035 of the Consumer Financial 
                Protection Act of 2010 Act (12 U.S.C. 5535)); and
                    ``(B) respond in writing, which may include 
                electronic communication, to such organization 
                regarding such application not later than 180 days 
                after the date of submission of the application.''.
    (b) Effective Date.--The amendments made in this section shall take 
effect as if included in the Stop Student Debt Relief Scams Act of 2019 
(Public Law 116-251) and in accordance with section 6 of such Act.
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