#aafth ,,congress #b;d ,session ,s4 #aaec ,,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 act4 #a4 ,short title ,this ,act may be cited as the ,stop ,student ,debt ,relief ,scams ,act of #bjai4 #b4 ,criminal penalties 7a7 ,in ,general ,section #dij of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajig7 is amended by adding at the end the following3 7e7 ,access to ,department of ,education ,information ,technology ,systems for fraud1 commercial advantage1 or private financial gain ,any person who knowingly uses an access device1 as defined in section #ajbi7;e77#a7 of title #ah1 ,united ,states ,code1 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 gain1 or in furtherance of any criminal or tortious act in violation of the ,constitution or laws of the ,united ,states or of any ,state1 shall be fined not more than #bj1jjj1 imprisoned for not more than #e years1 or both4 4 7b7 ,guidance ,the ,secretary shall issue guidance regarding the use of access devices in a manner that complies with this ,act1 and the amendments made by this ,act4 7c7 ,effective date of penalties ,notwithstanding section #f1 the penalties described in section #dij7;e7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajig71 as added by subsection 7a71 shall take effect the day after the date on which the ,secretary issues guidance regarding the use of access devices1 as described in subsection 7b74 #c4 ,loan counseling ,section #dhe7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7;b77 is amended-- 7#a7 in clause 7viii71 by striking and after the semicolon2 and 7#b7 by adding at the end the following3 7x7 an explanation that-- 7,i7 the borrower may be contacted during the repayment period by third-party student debt relief companies2 7,,ii7 the borrower should use caution when dealing with those companies2 and 7,,iii7 the services that those companies typically provide are already offered to borrowers free of charge through the ,department or the borrower's servicer2 and 4 #d4 ,prevention of improper access ,section #dhe;,b of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib;b7 is amended-- 7#a7 by redesignating subsections 7e7 through 7h7 as subsections 7f7 through 7i71 respectively2 7#b7 in subsection 7d7-- 7,a7 in paragraph 7#e77;,c71 by striking and after the semicolon2 7,b7 in paragraph 7#f77;,c71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#g7 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 plan1 consolidation loan1 or other benefit authorized by this title1 unless such access meets the requirements described in subsection 7e74 2 7#c7 by inserting after subsection 7d7 the following3 7e7 ,requirements for third-,party data system access 7#a7 ,in ,general ,as provided in paragraph 7#g7 of subsection 7d71 an authorized person or entity described in paragraph 7#b7 may access the data system and any other system used to administer a program under this title if that access-- 7,a7 is in compliance with terms of service1 information security standards1 and a code of conduct which shall be established by the ,secretary and published in the ,federal ,register2 7,b7 is obtained using an access device 7as defined in section #ajbi7;e77#a7 of title #ah1 ,united ,states ,code7 issued by the ,secretary to the authorized person or entity2 and 7,c7 is obtained without using any access device 7as defined in section #ajbi7;e77#a7 of title #ah1 ,united ,states ,code7 issued by the ,secretary to a student1 borrower1 or parent4 7#b7 ,authorized person or entity ,an authorized person or entity described in this paragraph means-- 7,a7 a guaranty agency1 eligible lender1 or eligible institution1 or a third-party organization acting on behalf of a guaranty agency1 eligible lender1 or eligible institution1 that is in compliance with applicable ,federal law 7including regulations and guidance72 or 7,b7 a licensed attorney representing a student1 borrower1 or parent1 or another individual who works for a ,federal1 ,state1 local1 or ,tribal government or agency1 or for a nonprofit organization1 providing financial or student loan repayment counseling to a student1 borrower1 or parent1 if-- 7i7 that attorney or other individual has never engaged in unfair1 deceptive1 or abusive practices1 as determined by the ,secretary2 7ii7 that attorney or other individual does not work for an entity that has engaged in unfair1 deceptive1 or abusive practices 7including an entity that is owned or operated by a person or entity that engaged in such practices71 as determined by the ,secretary2 7iii7 system access is provided only through a separate point of entry2 and 7iv7 the attorney or other individual has consent from the relevant student1 borrower1 or parent to access the system4 2 and 7#d7 in subsection 7f77#a71 as redesignated by paragraph 7#a7-- 7,a7 in subparagraph 7,a71 by striking student and parent and inserting student1 borrower1 and parent2 7,b7 by redesignating subparagraphs 7,c7 and 7,d7 as subparagraphs 7,d7 and 7,e71 respectively2 7,c7 by inserting after subparagraph 7,b7 the following3 7,c7 the reduction in improper data system access as described in subsection 7d77#g72 2 and 7,d7 by striking subparagraph 7,e71 as redesignated by subparagraph 7,b71 and inserting the following3 7,e7 any protocols1 codes of conduct1 terms of service1 or information security standards developed under paragraphs 7#f7 or 7#g7 of subsection 7d7 during the preceding fiscal year4 4 #e4 ,agency prevention and detection ,section #ada7;b77#b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajah7;b77#b77 is amended by adding at the end the following3 7,c7 ,taking action to prevent and address the improper use of access devices1 as described in section #dhe;,b7d77#g71 including by-- 7i7 detecting common patterns of improper use of any system that processes payments on ,federal ,direct ,loans or other ,department information technology systems2 7ii7 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 systems2 7iii7 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 accounts2 and 7iv7 providing clear and simple disclosures in communications with borrowers who are applying for or requesting assistance with ,federal ,direct ,loan programs 7including assistance or applications regarding income-driven repayment1 forbearance1 deferment1 consolidation1 rehabilitation1 cancellation1 and forgiveness7 to ensure that borrowers are aware that the ,department will never require borrowers to pay for such assistance or applications4 4 #f4 ,effective date ,this ,act1 and the amendments made by this ,act1 shall take effect on the date that is #ahj days after the date of enactment of this ,act4 ,passed the ,senate ,december #a1 #bjbj4,secretary