Student Loan Literacy Act of 2022
Bill: S.5209 | Sponsor: Sen. Gillibrand, Kirsten E. (D-NY)
Policy area: Education

Summary:
Student Loan Literacy Act of 2022
This bill provides funding for and establishes a grant program for community-based nonprofit student loan consumer assistance programs.
Specifically, the bill directs the Department of Education (ED) to award grants to states for establishing, expanding, or providing support for community-based nonprofit student loan consumer assistance programs. These programs must provide assistance to borrowers of federal student loans, including by educating borrowers about their rights and responsibilities with respect to federal student loans.
ED must (1) make publicly available through its website a list of programs receiving grant funds; and (2) ensure that each holder, servicer, and collector of federal student loans provides at least one federal student loan liaison to communicate with such assistance programs on various issues, including the handling of borrower complaints.

To establish a grant program for States to fund community-based 
  nonprofit student loan consumer assistance programs, and for other 
                               purposes.

    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 ``Student Loan Literacy Act of 2022''.

SEC. 2. STUDENT LOAN CONSUMER INFORMATION.

    (a) In General.--From amounts made available to carry out this 
section, the Secretary of Education shall award grants to States to 
enable such States to establish, expand, or provide support for 
community-based nonprofit student loan consumer assistance programs.
    (b) Application.--Each State desiring to receive a grant under this 
section shall submit to the Secretary of Education an application at 
such time and in such manner as the Secretary may require. Such 
application shall identify the community-based nonprofit student loan 
consumer assistance organization or organizations that will participate 
in the program funded under this section, and shall include a 
description of the program activities the State and such organization 
or organizations will carry out.
    (c) Use of Funds.--With funds provided by a State under this 
section, a community-based nonprofit student loan consumer assistance 
program--
            (1) shall provide assistance to borrowers of Federal 
        student loans, including--
                    (A) receiving and responding to borrower inquiries 
                and complaints concerning Federal student loans;
                    (B) assisting borrowers with the filing of 
                complaints and appeals with relevant Federal and State 
                entities and Federal student loan lenders, holders, 
                servicers, and collectors, as appropriate;
                    (C) collecting, tracking, and quantifying problems 
                and inquiries encountered by borrowers of Federal 
                student loans;
                    (D) educating borrowers about their rights and 
                responsibilities with respect to Federal student loans; 
                and
                    (E) assisting borrowers with Federal student loan 
                needs by providing information, referral, and 
                assistance, including assistance resolving problems 
                regarding Federal student loans;
            (2) shall consult with relevant Federal and State entities 
        to assist borrowers with reporting, processing, and resolving 
        issues and complaints related to Federal student loans;
            (3) shall collect data required to comply with the 
        reporting requirements under subsection (d); and
            (4) may file complaints and appeals on behalf of borrowers 
        of Federal student loans in accordance with any regulations 
        established by the Secretary of Education with respect to this 
        paragraph.
    (d) Data Collection and Reporting.--
            (1) Annual report to states.--Each community-based 
        nonprofit student loan consumer assistance program receiving 
        funds under this section shall provide to the State providing 
        such funds an annual report on the activities carried out by 
        such program, which shall include--
                    (A) the number of borrowers served by the program;
                    (B) demographic data on the borrowers served by the 
                program, including age, race, ethnicity, gender, and 
                student or employment status, and if available, the 
                income of such borrowers;
                    (C) a list and description of the types of issues 
                and complaints presented by borrowers served by the 
                program, including identification of the most common 
                problems encountered by such borrowers with respect to 
                Federal student loans;
                    (D) a description of the types of services provided 
                to borrowers by the program; and
                    (E) data related to the issues and complaints 
                presented by borrowers served by the program, 
                including--
                            (i) the number of borrower issues or 
                        complaints the program referred to, or 
                        facilitated borrower contact with, a Federal or 
                        State entity or Federal student loan lender, 
                        holder, servicer, or collector;
                            (ii) the number of such issues or 
                        complaints the program filed, on behalf of a 
                        borrower, with a Federal or State entity or 
                        Federal student loan lender, holder, servicer, 
                        or collector; and
                            (iii) data on the outcomes of such issues 
                        and complaints, including the number of such 
                        issues or complaints that have been resolved, 
                        and whether a borrower considers an issue or 
                        complaint to be resolved satisfactorily.
            (2) State reports.--Not later than 30 days after receipt of 
        an annual report described in paragraph (1), a State receiving 
        funds under this section for one or more community-based 
        nonprofit student loan consumer assistance programs shall 
        provide to the Secretary of Education a summary of the annual 
        reports received from all such programs.
            (3) Report by the secretary.--Beginning 18 months after the 
        date of enactment of this section, the Secretary of Education 
        shall provide an annual report on the grant program carried out 
        under this section to the Committee on Health, Education, 
        Labor, and Pensions of the Senate and the Committee on 
        Education and Labor of the House of Representatives, the entity 
        in each State that is responsible for regulation of student 
        loans, and any other Federal entity with responsibilities 
        related to Federal student loans. Such report shall include 
        areas of Federal student loan law, regulation, and 
        administration that require increased enforcement or oversight, 
        as identified by the Secretary using data reported by States in 
        accordance with paragraph (2).
    (e) Outreach.--
            (1) National website.--Not later than 24 months after the 
        date of enactment of this section, the Secretary of Education 
        shall establish, maintain, and make readily available to the 
        public through the Department of Education's website a list of 
        the community-based nonprofit student loan consumer assistance 
        programs receiving funds under this section to assist borrowers 
        with locating and contacting such a program in their community.
            (2) Federal student loan liaisons.--The Secretary of 
        Education shall take such steps as may be necessary to ensure 
        that each holder, servicer, and collector of Federal student 
        loans provides at least one individual representative of the 
        holder, servicer, or collector, referred to in this paragraph 
        as a ``Federal student loan liaison'', who will--
                    (A) coordinate with community-based nonprofit 
                student loan consumer assistance programs receiving 
                funds under this section with respect to inquiries, 
                issues, and complaints from borrowers, including the 
                resolution of such inquiries, issues, and complaints; 
                and
                    (B) provide community-based nonprofit student loan 
                consumer assistance programs receiving funds under this 
                section with a direct method of communication to the 
                individual or department of the holder, servicer, or 
                collector who is responsible for handling escalated 
                issues or complaints.
    (f) Definitions.--In this section:
            (1) Borrower.--The term ``borrower'' means a borrower or 
        potential borrower of a Federal student loan, including a 
        parent who is a borrower of a loan made on behalf of a 
        dependent student.
            (2) Federal student loan.--The term ``Federal student 
        loan'' means any Federal student loan made under title IV of 
        the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) or 
        any other Federal law to cover the cost of attendance of a 
        student at an institution of higher education (as defined in 
        section 102 of such Act of 1965 (20 U.S.C. 1002)).
    (g) Funding.--
            (1) Initial funding.--There is hereby appropriated to the 
        Secretary of Education, out of any funds in the Treasury not 
        otherwise appropriated, $80,000,000 for the first fiscal year 
        beginning after the date of enactment of this section, to 
        remain available until expended.
            (2) Authorization for subsequent years.--In addition to 
        amounts appropriated under paragraph (1), there are authorized 
        to be appropriated to the Secretary of Education, for each 
        fiscal year following the fiscal year described in paragraph 
        (1), such sums as may be necessary to carry out this section.
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