Student Loan Servicer Performance Accountability Act

Bill: 115-s-1675
Sponsor: full_name: Sen. Blunt, Roy [R-MO]
Introduced: 2017-07-31
Policy area: Education
Subjects: Department of Education

Educational technology and distance education

Government lending and loan guarantees

Higher education

Student aid and college costs
Latest action: action_date: 2017-07-31
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2017-07-31
action_desc: Introduced in Senate
text: <p><b>Student Loan Servicer Performance Accountability Act</b></p> <p>This bill cancels the solicitations of the Department of Education for a single federal student loan servicer and instead requires competition in student loan servicing. </p> <ul> </ul>

tv_txt: 115th CONGRESS 1st Session S. 1675 IN THE SENATE OF THE UNITED STATES July 31, 2017 Mr. Blunt (for himself, Ms. Warren , Mr. Lankford , and Mrs. Shaheen ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To promote quality student loan servicing by improving the borrower experience for borrowers of Federal Direct Loans.

1. Short title This Act may be cited as the Student Loan Servicer Performance Accountability Act . 2. Competition in student loan servicing (a) Cancellation of solicitations The Secretary of Education shall cancel the Department of Education solicitations for the Federal Aid Servicing Solution dated April 4, 2016 and October 26, 2016, including any amendments to those solicitations (Solicitation No. ED–FSA–17–R–0001 et seq). (b) Competition in student loan servicing Section 456 of the Higher Education Act of 1965 ( 20 U.S.C. 1087f ) is amended by adding at the end the following: (c) Competition in student loan servicing (1) Competition As of the date of enactment of the Student Loan Servicer Performance Accountability Act , in order to promote accountability and high-quality services to borrowers, the Secretary shall not issue any contract solicitation for a new Federal student loan servicing solution unless such a solution— (A) provides for the participation of multiple student loan servicers that contract directly with the Department of Education; and (B) allocates student loan borrower accounts to eligible student loan servicers based on performance. (2) Prohibition The Secretary shall not award a contract to a single servicer to service all Federal Direct Loans. .