,i #aafth ,,congress #ast ,session ,h4 ,r4 #deif ,,in ,,the ,,house ,,of ,,representatives ,october #a1 #bjai,ms4 ,omar 7for herself and ,ms4 ,scanlon7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to improve service to students and other participants in the ,federal student financial assistance programs1 to establish the ,office of the ,borrower ,advocate to replace the ,student ,loan ,ombudsman1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,loan ,advocacy ,act4 #b4 ,performance-based organization for delivery of ,federal student financial assistance 7a7 ,,pbo ,section #ada of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajah7 is amended-- 7#a7 in subsection 7a71 by amending paragraph 7#b7 to read as follows3 7#b7 ,purposes ,the purposes of the ,,pbo are as follows3 7,a7 ,to prioritize students and borrowers in the decisionmaking process of the ,,pbo4 7,b7 ,to improve service to students and other participants in the ,federal student financial assistance programs authorized under title ,,iv4 7,c7 ,to make such programs more understandable to students and their parents4 7,d7 ,to increase the efficiency and effectiveness of such programs for students and their parents4 7,e7 ,to manage the costs of administering such programs4 7,f7 ,to increase the accountability of the officials responsible for administering the operational aspects of such programs4 7,g7 ,to increase oversight of institutions1 contractors1 and third party servicers that participate in the ,federal student financial assistance programs authorized under title ,,iv4 7,h7 ,to provide greater flexibility in the management and administration of such programs4 7,i7 ,to implement open1 common1 integrated systems for the delivery of ,federal student financial assistance programs authorized under title ,,iv4 7,j7 ,to develop and maintain a student financial assistance system that contains complete1 accurate1 and timely data to ensure program integrity4 7,k7 ,to increase transparency in the operations and outcomes of ,federal student financial assistance programs authorized under title ,,iv4 2 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively2 and 7ii7 by inserting after subparagraph 7,a7 the following3 7,b7 implement oversight and accountability measures to ensure that the ,,pbo carries out its duties under this section efficiently1 effectively1 and in a manner that accomplishes the purposes specified in subsection 7a77#b72 2 7,b7 in paragraph 7#b77;,a7-- 7i7 by redesignating clauses 7ii7 through 7vi7 as clauses 7iii7 through 7vii72 7ii7 by inserting after clause 7i7 the following3 7ii7 in accordance with paragraph 7#c71 the collection1 publication1 and sharing of longitudinal data that may be used to evaluate ,federal student financial assistance programs authorized under title ,,iv1 including the outcomes such programs achieve2 2 and 7iii7 in clause 7vii71 as so redesignated1 by inserting 1 including oversight of institutions1 contractors1 and third party servicers that participate in such programs after title ,,iv 2 7,c7 by redesignating paragraphs 7#c7 through 7#f7 as paragraphs 7#d7 through 7#g71 respectively2 and 7,d7 by inserting after paragraph 7#b7 the following3 7#c7 ,collection1 sharing1 and publication of data 7,a7 ,collection ,the ,,pbo shall collect longitudinal data1 including student-level data1 that shall be used to evaluate ,federal student financial assistance programs authorized under title ,,iv4 7,b7 ,sharing with ,,nces ,the ,,pbo shall make the data collected under subparagraph 7,a7 available to the ,commissioner of the ,national ,center for ,education ,statistics for purposes of research and policy analysis4 7,c7 ,sharing with researchers ,the ,commissioner of the ,national ,center for ,education ,statistics shall make the data shared under subparagraph 7,b7 available to researchers for vetted research and evaluation purposes4 ,data made available to researchers under this subparagraph shall not include any data that would reveal personally identifiable information4 7,d7 ,publication 7i7 ,in general ,not less frequently than once annually1 and subject to clause 7ii71 the ,,pbo shall make the data collected under subparagraph 7,a7 available on a publicly accessible website of the ,department of ,education in a format that enables members of the public to easily retrieve1 sort1 and analyze the data4 7ii7 ,privacy protections ,the data made available under clause 7i7 shall not include-- 7,i7 student-level data2 or 7,,ii7 any data that would reveal personally identifiable information about an individual student4 4 7#c7 by amending subsection 7c7 to read as follows3 7c7 ,performance plan1 report1 and briefing 7#a7 ,performance plan 7,a7 ,in general ,not later than one year after the date of the enactment of the ,student ,loan ,advocacy ,act1 and not less than once every five years thereafter1 the ,secretary and ,chief ,operating ,officer shall agree on a performance plan for the ,,pbo for the succeeding #e years that-- 7i7 establishes measurable quantitative and qualitative goals and objectives for the organization2 and 7ii7 aligns such goals and objectives with the purposes specified in subsection 7a77#b74 7,b7 ,consultation ,in developing the five-year performance plan and any revision to the plan1 the ,secretary and the ,chief ,operating ,officer shall consult with students1 institutions1 ,congress1 contractors1 the ,borrower ,advocate1 student aid experts1 including consumer advocacy and research groups1 the ,director of the ,bureau of ,consumer ,financial ,protection1 ,state attorneys general1 and other relevant parties4 7,c7 ,revisions ,the ,secretary and ,chief ,operating ,officer may annually update the plan under paragraph 7#a7 to incorporate the recommendations made pursuant to the consultation required under subparagraph 7,b7 that are accepted by the ,secretary and the ,chief ,operating ,officer4 7,d7 ,areas ,the plan developed under subparagraph 7,a7 shall address the responsibilities of the ,,pbo in the following areas3 7i7 ,improving service to students and other participants in the ,federal student financial assistance programs authorized under title ,,iv1 including making those programs more understandable and accessible to students and their parents4 7ii7 ,managing the costs and increasing the efficiency of such programs4 7iii7 ,improving1 integrating1 and investing in the systems that support such programs4 7iv7 ,developing open1 common1 and integrated systems for such programs4 7v7 ,the collection1 publication1 and sharing of data on such programs as described in subsection 7b77#c74 7vi7 ,improving performance standards and outcomes with respect to institutions1 contractors1 and third party servicers that act as agents of the ,department or as agents of institutions that participate in such programs4 7vii7 ,any other areas identified by the ,secretary4 7,e7 ,public availability ,each plan developed under subparagraph 7,a7 shall be made available on a publicly accessible website of the ,department of ,education4 7#b7 ,annual report 7,a7 ,report required ,not later than one year after the date of the enactment of the ,student ,loan ,advocacy ,act and annually thereafter1 the ,secretary1 acting through the ,chief ,operating ,officer1 shall submit to ,congress an annual report on the performance of the ,,pbo4 7,b7 ,contents ,the annual report shall include the following3 7i7 ,an evaluation of the extent to which the ,,pbo met the goals and objectives contained in the five-year performance plan described in paragraph 7#a7 for the preceding year4 7ii7 ,a summary of the consultation process under paragraph 7#a77;,b7 for the preceding year1 including the recommendations that were accepted or denied by the ,chief ,operating ,officer during such year1 and the rationale for accepting or denying such recommendations4 7iii7 ,an independent financial audit of the expenditures of both the ,,pbo and the programs administered by the ,,pbo4 7iv7 ,a summary of the actions taken by the ,,pbo to address-- 7,i7 the findings of the audit described in clause 7iii72 and 7,,ii7 consumer feedback4 7v7 ,financial and performance requirements applicable to the ,,pbo under-- 7,i7 the ,chief ,financial ,officers ,act of #aiij 7,public ,law #aja-egf72 or 7,,ii7 the ,government ,performance and ,results ,act of #aiic 7,public ,law #ajc-fb74 7vi7 ,the results achieved by the ,,pbo during the preceding year and whether such results met the goals specified in the performance plan under paragraph 7#a74 7vii7 ,with respect to the preceding year1 the evaluation rating of the performance of the ,chief ,operating ,officer and senior managers under subsections 7d77#e7 and 7e77#b71 including the amounts of bonus compensation awarded to the ,chief ,operating ,officer and senior managers4 7viii7 ,recommendations for legislative and regulatory changes to improve service to students and their families1 and to improve the efficiency and integrity of ,federal student financial assistance programs authorized under title ,,iv4 7ix7 ,financial statements that provide a rationale for appropriately funding the activities of the ,,pbo4 7x7 ,a summary of the management and compliance of contractors managed by the ,,pbo in the preceding year1 including corrective actions taken by the ,,pbo with respect to such contractors4 7xi7 ,a description of how the ,,pbo used the authority under paragraph 7#e7 of subsection 7b7 for making personnel and procurement decisions in the preceding year1 including the number of individuals hired through such authority and the bonuses provided to staff during such year4 7xii7 ,a summary of the oversight activities of institutions1 contractors1 and third party servicers that participate in the ,federal student financial assistance programs authorized under title ,,iv including-- 7,i7 fines levied on such institutions1 contractors1 and third party servicers1 disaggregated by entity2 7,,ii7 instances of fraud or misrepresentation by such institutions1 contractors1 or third party servicers2 and 7,,iii7 violations of provisions in this ,act by such institutions1 contractors1 or third party servicers disaggregated by entity and type of violation4 7xiii7 ,a summary of any improvements made with respect to transparency and any new types of data made available in the preceding year4 7xiv7 ,a description of the progress made in the preceding year towards the specific measurable organization and individual goals specified in subsection 7d77#e77;,a74 7xv7 ,the report submitted to the ,secretary under subsection 7f77#g74 7xvi7 ,other such information as the ,director of the ,office of ,management and ,budget shall prescribe for performance based organizations4 7#c7 ,consultation with stakeholders ,the ,chief ,operating ,officer1 in preparing the annual report described in paragraph 7#b71 shall establish appropriate means to consult with students1 borrowers1 institutions1 student aid experts1 including consumer advocacy and research groups1 the ,director of the ,bureau of ,consumer ,financial ,protection1 and others involved in the delivery and evaluation of student aid under title ,,iv-- 7,a7 regarding the degree of satisfaction with the delivery system2 and 7,b7 to seek suggestions on means to improve the performance of the delivery system4 7#d7 ,briefing on enforcement of program integrity ,the ,secretary shall1 at the request of the authorizing committees1 provide to the authorizing committees a briefing on the steps the ,department of ,education has taken to ensure-- 7,a7 the experiences of students and borrowers are accounted for in decision making2 and 7,b7 that contractors1 lenders1 and guaranty agencies and third party servicers are adhering to the requirements of title ,,iv1 the terms of any contract with the ,secretary1 consumer protection laws1 ,federal regulations and guidelines1 and directives of the ,,pbo4 7#e7 ,coordination with the ,director of the ,bureau of ,consumer ,financial ,protection ,not later than #ahj days after the date of the enactment of the ,student ,loan ,advocacy ,act1 the ,secretary shall enter into a memorandum of understanding with the ,private ,education ,loan ,ombudsman in accordance with section #ajce7;c77#b7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #eece7;c77#b774 4 7#d7 in subsection 7d7-- 7,a7 in paragraph 7#a71 by striking management ability and all that follows through the period at the end and inserting management ability1 including contractor management1 expertise in the ,federal student financial assistance programs authorized under title ,,iv1 experience with financial systems1 and knowledge of consumer financial protection laws1 and without regard to political affiliation or activity42 7,b7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#c7 through 7#f72 7,c7 by inserting after paragraph 7#a7 the following3 7#b7 ,restrictions 7,a7 ,preservice and in-service restrictions ,an individual may not serve as the ,chief ,operating ,officer if such individual-- 7i7 is employed by1 or has a financial interest in1 an entity that contracts with the ,,pbo2 or 7ii7 was employed by1 or had a financial interest in1 any such entity in any of the five years preceding the date of the individual's appointment as the ,chief ,operating ,officer4 7,b7 ,postservice restrictions ,an individual who served as the ,chief ,operating ,officer may not accept employment with an entity that contracts with the ,,pbo until a period of five years has elapsed following the date on which such individual's service as the ,chief ,operating ,officer terminated4 2 7,d7 in paragraph 7#e71 as so redesignated-- 7i7 in subparagraph 7,a7-- 7,i7 by inserting specific before measurable2 and 7,,ii7 by inserting and metrics used to measure progress toward such goals before the period2 and 7ii7 in subparagraph 7,b71 by inserting on the website of the ,department before the period2 and 7,e7 in paragraph 7#f71 as so redesignated1 by amending subparagraph 7,b7 to read as follows3 7,b7 ,bonus authorized ,the ,secretary may pay to the ,chief ,operating ,officer a bonus in an amount that does not exceed #ej percent of such annual rate of basic pay4 ,the decision to pay such a bonus1 and the amount of the bonus1 shall be based solely on the ,secretary's evaluation of the performance of the ,chief ,operating ,officer with respect to the goals set forth in the performance agreement as described in paragraph 7#e77;,a74 2 7#e7 in subsection 7e77#b71 by striking organization and individual goals and inserting specific1 measurable organization and individual goals and the metrics used to measure progress toward such goals4 ,performance agreements for senior management responsible for procurement shall include metrics that measure ability to oversee contractors42 7#f7 by amending subsection 7f7 to read as follows3 7f7 ,borrower ,advocate 7#a7 ,in general ,there is established in the ,,pbo an ,office of the ,borrower ,advocate 7referred to in this subsection as the ,office74 ,the function of the ,office shall be to provide timely assistance to borrowers of loans made1 insured1 or guaranteed under title ,,iv by performing the duties described in paragraph 7#f74 7#b7 ,head of ,office ,there shall be an official known as the ,borrower ,advocate who shall serve as the head of the ,office4 ,the ,borrower ,advocate shall be appointed by the ,secretary from among individuals who have worked closely with the ,federal student loan programs authorized under title ,,iv4 7#c7 ,removal ,the ,borrower ,advocate may be removed only by the ,secretary who shall communicate the reasons for any such removal to the authorizing committees4 7#d7 ,restrictions 7,a7 ,preservice and in-service restrictions ,an individual may not serve as the ,borrower ,advocate if such individual-- 7i7 is employed by1 or has a financial interest in1 an entity that contracts with the ,,pbo2 or 7ii7 was employed by1 or had a financial interest in1 any such entity in any of the five years preceding the date of the individual's appointment as the ,borrower ,advocate4 7,b7 ,postservice restrictions ,an individual who served as the ,borrower ,advocate may not accept employment with an entity that contracts with the ,,pbo until a period of five years has elapsed following the date on which such individual's service as the ,borrower ,advocate terminated4 7#e7 ,staff ,the ,office shall be staffed sufficiently to carry out the responsibilities of the ,office under this subsection4 7#f7 ,duties of the ,borrower ,advocate ,the ,office of the ,borrower ,advocate shall-- 7,a7 assist borrowers of loans made1 insured1 or guaranteed under title ,,iv in resolving problems with the ,,pbo and its contractors or other agents1 including by-- 7i7 receiving and reviewing complaints of such problems from borrowers2 7ii7 working to resolve such complaints in a manner that is in the best interests of borrowers2 and 7iii7 transmitting such complaints to ,states and recognized accrediting agencies or associations1 as appropriate2 7,b7 attempt to resolve complaints within the ,department of ,education and with institutions of higher education1 lenders1 guaranty agencies1 loan servicers1 and other participants in the ,federal student loan programs authorized under title ,,iv in a manner that will improve the experience of the borrower2 7,c7 compile and analyze data on borrower complaints and share such data with the ,director of the ,bureau of ,consumer ,financial ,protection2 7,d7 publish1 with any personally identifiable information redacted1 such complaints and responses of the ,secretary to such complaints on the website of the ,department2 and 7,e7 make appropriate recommendations to ,congress1 the ,chief ,operating ,officer1 and ,secretary with respect to ,federal student loan programs authorized under title ,,iv and the experiences of borrowers in repayment of loans under such programs4 7#g7 ,public information ,the ,chief ,operating ,officer shall establish and maintain a public page on the website of the ,department of ,education exclusively to provide members of the public with information about the role of the ,,pbo with respect to the oversight of institutions of higher education1 lenders1 guaranty agencies1 contractors that contract with the ,,pbo1 subcontractors of such contractors1 and third party servicers4 7#h7 ,report ,on an annual basis1 the ,borrower ,advocate shall submit to the ,chief ,operating ,officer a report on the activities of the ,office during the preceding year that-- 7,a7 identifies the activities carried out by the ,borrower ,advocate2 7,b7 summarizes the complaints received from borrowers1 including the number of such complaints1 and explains the activities undertaken by the ,,pbo to address such complaints2 7,c7 proposes changes in the administrative practices of the ,,pbo to mitigate problems experienced by borrowers2 and 7,d7 identifies potential legislative changes which may be appropriate to mitigate such problems4 2 7#g7 by redesignating subsection 7i7 as subsection 7j72 and 7#h7 by inserting after subsection 7h7 the following3 7i7 ,third party servicer defined ,in this section1 the term third party servicer has the meaning given that term in section #dha7;c74 4 7b7 ,definition of third-,party servicer ,section #dha7;c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh7;c77 is amended-- 7#a7 in the matter preceding paragraph 7#a71 by striking contract and inserting contract or other agreement1 including a revenue sharing arrangement12 and 7#b7 in paragraph 7#a71 by striking 1 through either manual or automated processing1 any aspect of such institution's student assistance programs and inserting services on behalf of the institution receiving student assistance funds 4 7c7 ,conforming amendments 7#a7 ,section #dcc7;b77#ac7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhc7;b77#ac77 is amended by striking ,student ,loan ,ombudsman and inserting ,borrower ,advocate4 7#b7 ,section #dcc7;e77#c77;,e7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhc7;e77#c77;,e77 is amended by striking ,student ,loan ,ombudsman and inserting ,borrower ,advocate4