,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #fah  ,,in ,,the ,,house ,,of   
,,representatives  ,february #ab1 #bjac 
,mr4 ,michaud 7for himself1 ,mr4 ,price 
of ,north ,carolina1 ,ms4 ,bordallo1 and
 ,ms4 ,pingree of ,maine7 introduced the
 following bill2 which was referred to  
the ,committee on ,education and the    
,workforce  ,a ,,bill  ,to authorize the
 ,secretary of ,education to enter into 
voluntary1 flexible agreements with     
certain guarantee agencies to provide   
delinquency prevention and default      
aversion services for borrowers and     
potential borrowers of ,federal ,direct 
,loans under the ,higher ,education ,act
 of #aife1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the ,student ,loan ,default ,prevention 
,act4  #b4 ,voluntary1 flexible         
agreements  7a7 ,in general ,section    
#dbh;,a of the ,higher ,education ,act  
of #aife 7#bj ,u4,s4,c4 #ajgh-a7 is     
amended--  7#a7 by redesignating        
subsection 7d7 as subsection 7e72 and   

7#b7 by inserting after subsection 7c71 
the following3  7d7 ,supplemental       
student loan services  7#a7 ,in general 
,not later than #i months after the date
 of enactment of the ,student ,loan     
,default ,prevention ,act and           
notwithstanding any other provision of  
this part1 the ,secretary shall1 upon   
the request of an eligible guarantee    
agency1 enter into a voluntary1 flexible
 agreement with the guarantee agency1 or
 revise the voluntary1 flexible         
agreement previously entered into with  
the guarantee agency under this section1
 to provide for the services described  
in paragraph 7#c7 for borrowers         
7including potential borrowers1 if      
applicable7 of loans made under this    
part or part ,d4  7#b7 ,eligibility ,for
 the purposes of this subsection1 an    
eligible guarantee agency is a guarantee
 agency that has extensive and relevant 
experience and demonstrated             
effectiveness in providing the services 
described in paragraph 7#c74  7#c7      

,services  7,a7 ,in general ,the        
services described in this paragraph for
 borrowers 7including potential         
borrowers1 if applicable7 of loans made 
under this part or part ,d may include--
  7i7 delinquency prevention and default
 aversion activities2  7ii7 collection  
of defaulted loans2  7iii7 monitoring of
 institutions participating in the      
program under part ,d2  7iv7 training of
 financial aid officials2 and  7v7      
informational outreach to schools and   
students in support of access to higher 
education and financial literacy4  7,b7 
,existing local services ,in carrying   
out the services described in           
subparagraph 7,a71 an eligible guarantee
 agency shall provide localized services
 directly or through partnerships with  
other eligible guarantee agencies to    
assist borrowers and institutions of    
higher education4  7#d7 ,reasonable fees
 ,an agreement entered into or revised  
under this subsection shall include a   
provision regarding the fees that the   

,secretary shall pay to an eligible     
guarantee agency for carrying out       
services under the agreement4 ,the      
determination of such fees shall be cost
 neutral and take into account savings  
resulting from the provision of such    
services as reasonably projected by the 
,secretary4  7#e7 ,public ,notice ,the  
,secretary shall publish in the ,federal
 ,register a notice to all guarantee    
agencies that sets forth--  7,a7 an     
invitation for the guarantee agencies to
 enter into or revise agreements under  
this subsection2 and  7,b7 the criteria 
that the ,secretary will use for        
selecting the guarantee agencies with   
which the ,secretary will enter into1 or
 revise1 agreements under this          
subsection4  7#f7 ,agreement notice ,the
 ,secretary shall notify the members of 
the authorizing committees not later    
than #cj days prior to concluding an    
agreement under this subsection4  7#g7  
,public availability ,the text of any   
voluntary flexible agreements entered   

into or revised under this subsection   
shall be readily available to the       
public4  4  7b7 ,conforming amendment   
,section #def of the ,higher ,education 
,act of #aife 7#bj ,u4,s4,c4 #ajhg;f7 is
 amended by inserting or section        
#dbh;,a7d7 after sections #dbh7;b77 and 
7c74