Stop Student Debt Relief Scams Act of 2019
PL 116-251 (S.1153), enacted 12/22/2020

[116th Congress Public Law 251]
[From the U.S. Government Publishing Office]



[[Page 134 STAT. 1129]]

Public Law 116-251
116th Congress

                                 An Act


 
   To explicitly make unauthorized access to Department of Education 
information technology systems and the misuse of identification devices 
 issued by the Department of Education a criminal act. <<NOTE: Dec. 22, 
                          2020 -  [S. 1153]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Stop Student 
Debt Relief Scams Act of 2019. 20 USC 1001 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Student Debt Relief Scams Act of 
2019''.
SEC. 2. CRIMINAL PENALTIES.

    (a) In General.--Section 490 of the Higher Education Act of 1965 (20 
U.S.C. 1097) is amended by adding at the end the following:
    ``(e) Access to Department of Education Information Technology 
Systems for Fraud, Commercial Advantage, or Private Financial Gain.--Any 
person who knowingly uses an access device, as defined in section 
1029(e)(1) of title 18, United States Code, issued to another person or 
obtained by fraud or false statement to access Department information 
technology systems for purposes of obtaining commercial advantage or 
private financial gain, or in furtherance of any criminal or tortious 
act in violation of the Constitution or laws of the United States or of 
any State, shall be fined not more than $20,000, imprisoned for not more 
than 5 years, or both.''.
    (b) <<NOTE: 20 USC 1097 note.>>  Guidance.--The Secretary shall 
issue guidance regarding the use of access devices in a manner that 
complies with this Act, and the amendments made by this Act.

    (c) <<NOTE: 20 USC 1097 note.>>  Effective Date of Penalties.--
Notwithstanding section 6, the penalties described in section 490(e) of 
the Higher Education Act of 1965 (20 U.S.C. 1097), as added by 
subsection (a), shall take effect the day after the date on which the 
Secretary issues guidance regarding the use of access devices, as 
described in subsection (b).
SEC. 3. LOAN COUNSELING.

    Section 485(b) of the Higher Education Act of 1965 (20 U.S.C. 
1092(b)) is amended--
            (1) in clause (viii), by striking ``and'' after the 
        semicolon; and
            (2) by adding at the end the following:
                          ``(x) an explanation that--

[[Page 134 STAT. 1130]]

                                    ``(I) the borrower may be contacted 
                                during the repayment period by third-
                                party student debt relief companies;
                                    ``(II) the borrower should use 
                                caution when dealing with those 
                                companies; and
                                    ``(III) the services that those 
                                companies typically provide are already 
                                offered to borrowers free of charge 
                                through the Department or the borrower's 
                                servicer; and''.
SEC. 4. PREVENTION OF IMPROPER ACCESS.

    Section 485B of the Higher Education Act of 1965 (20 U.S.C. 1092b) 
is amended--
            (1) by redesignating subsections (e) through (h) as 
        subsections (f) through (i), respectively;
            (2) in subsection (d)--
                    (A) in paragraph (5)(C), by striking ``and'' after 
                the semicolon;
                    (B) in paragraph (6)(C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) preventing access to the data system and any other 
        system used to administer a program under this title by any 
        person or entity for the purpose of assisting a student in 
        managing loan repayment or applying for any repayment plan, 
        consolidation loan, or other benefit authorized by this title, 
        unless such access meets the requirements described in 
        subsection (e).'';
            (3) by inserting after subsection (d) the following:

    ``(e) Requirements for Third-Party Data System Access.--
            ``(1) In general.--As provided in paragraph (7) of 
        subsection (d), an authorized person or entity described in 
        paragraph (2) may access the data system and any other system 
        used to administer a program under this title if that access--
                    ``(A) <<NOTE: Federal Register, publication.>>  is 
                in compliance with terms of service, information 
                security standards, and a code of conduct which shall be 
                established by the Secretary and published in the 
                Federal Register;
                    ``(B) is obtained using an access device (as defined 
                in section 1029(e)(1) of title 18, United States Code) 
                issued by the Secretary to the authorized person or 
                entity; and
                    ``(C) is obtained without using any access device 
                (as defined in section 1029(e)(1) of title 18, United 
                States Code) issued by the Secretary to a student, 
                borrower, or parent.
            ``(2) <<NOTE: Definition.>>  Authorized person or entity.--
        An authorized person or entity described in this paragraph 
        means--
                    ``(A) a guaranty agency, eligible lender, or 
                eligible institution, or a third-party organization 
                acting on behalf of a guaranty agency, eligible lender, 
                or eligible institution, that is in compliance with 
                applicable Federal law (including regulations and 
                guidance); or
                    ``(B) <<NOTE: Determinations.>>  a licensed attorney 
                representing a student, borrower, or parent, or another 
                individual who works for a Federal, State, local, or 
                Tribal government or agency, or for a nonprofit 
                organization, providing financial or student loan 
                repayment counseling to a student, borrower, or parent, 
                if--

[[Page 134 STAT. 1131]]

                          ``(i) that attorney or other individual has 
                      never engaged in unfair, deceptive, or abusive 
                      practices, as determined by the Secretary;
                          ``(ii) that attorney or other individual does 
                      not work for an entity that has 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) system access is provided only through 
                      a separate point of entry; and
                          ``(iv) the attorney or other individual has 
                      consent from the relevant student, borrower, or 
                      parent to access the system.''; and
            (4) in subsection (f)(1), as redesignated by paragraph (1)--
                    (A) in subparagraph (A), by striking ``student and 
                parent'' and inserting ``student, borrower, and 
                parent'';
                    (B) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (D) and (E), respectively;
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) the reduction in improper data system access 
                as described in subsection (d)(7);''; and
                    (D) by striking subparagraph (E), as redesignated by 
                subparagraph (B), and inserting the following:
                    ``(E) any protocols, codes of conduct, terms of 
                service, or information security standards developed 
                under paragraphs (6) or (7) of subsection (d) during the 
                preceding fiscal year.''.
SEC. 5. AGENCY PREVENTION AND DETECTION.

    Section 141(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1018(b)(2)) is amended by adding at the end the following:
                    ``(C) Taking action to prevent and address the 
                improper use of access devices, as described in section 
                485B(d)(7), including by--
                          ``(i) detecting common patterns of improper 
                      use of any system that processes payments on 
                      Federal Direct Loans or other Department 
                      information technology systems;
                          ``(ii) maintaining a reporting system for 
                      contractors involved in the processing of payments 
                      on Federal Direct Loans in order to allow those 
                      contractors to alert the Secretary of potentially 
                      improper use of Department information technology 
                      systems;
                          ``(iii) proactively contacting Federal student 
                      loan borrowers whose Federal student loan accounts 
                      demonstrate a likelihood of improper use in order 
                      to warn those borrowers of suspicious activity or 
                      potential fraud regarding their Federal student 
                      loan accounts; and
                          ``(iv) providing clear and simple disclosures 
                      in communications with borrowers who are applying 
                      for or requesting assistance with Federal Direct 
                      Loan programs (including assistance or 
                      applications regarding income-driven repayment, 
                      forbearance, deferment, consolidation, 
                      rehabilitation, cancellation, and forgiveness) to 
                      ensure that borrowers are aware that the 
                      Department will never require borrowers to pay for 
                      such assistance or applications.''.

[[Page 134 STAT. 1132]]

SEC. 6. <<NOTE: 20 USC 1018 note.>>  EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
the date that is 180 days after the date of enactment of this Act.

    Approved December 22, 2020.

LEGISLATIVE HISTORY--S. 1153:
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CONGRESSIONAL RECORD, Vol. 166 (2020):
            Dec. 1, considered and passed Senate.
            Dec. 7, considered and passed House.

                                  <all>