,,ii  #aah? ,,congress  #b;d ,session   
,s4 #ddha  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #e1 #bjbd,mr4    
,wyd5 7= himself1 ,ms4 ,klobu*>1 ,mr4   
,van ,holl51 & ,mr4 ,padilla7 introduc$ 
! foll[+ bill2 :i* 0 read twice & ref]r$
 to ! ,committee on ,heal?1 ,education1 
,labor1 & ,p5sions  ,a ,,bill  ,to      
/r5g!n requirem5ts = contracts betwe5 ! 
,dep>tm5t ( ,education & ,f$]al /ud5t   
loan s]vic]s1 & = o!r purposes4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,/ud5t ,loan ,s]vic]s ,acc\ntability    
,act ( #bjbd4  #b4 ,contract requirem5ts
 = ,f$]al /ud5t loan s]vic]s  7a7 ,9    
g5]al ,"p ,g ( title ,,iv ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhh et seq47 is am5d$ by add+ at ! end
 ! foll[+3  #did;,a4 ,contract          
requirem5ts = ,f$]al /ud5t loan s]vic]s 
7a7 ,enhanc$ vett+ ,be=e ent]+ into a   
contract or o!r agreem5t ) a ,f$]al     
/ud5t loan s]vic] = ! s]vic+ ( ,f$]al   
/ud5t loans1 ! ,secret>y %all evaluate !
 foll[+ factors3 7#a7 ,9 ! case ( a     

s]vic] t has previ\sly s]vic$ ,f$]al    
/ud5t loans1 ! pa/ p]=mance ( ! s]vic]  
comp>$ to all ,f$]al /ud5t loan s]vic]s1
 includ+-- 7,a7 ! levels ( consum]      
satisfaction report$ ) respect to su*   
s]vic]2 &  7,b7 ! quality ( cu/om]      
s]vice practices & ! demon/rat$ ability 
( ! s]vic] to prev5t errors &           
disruptions 9 s]vices 9 ! ev5t a ,f$]al 
/ud5t loan is transf]r$ to or f !       
s]vic]1 z measur$ by-- 7i7 ! s]vice     
level me?odology p]=mance metrics &     
s]vic] allocation metrics issu$ by !    
,(fice ( ,f$]al ,/ud5t ,aid ( !         
,dep>tm5t 7or any successor metrics72 & 
7ii7 any o!r quantitative or qualitative
 factors ! ,secret>y det]m9es           
appropriate = analysis4  7#b7 ,9 ! case 
( a s]vic] t has n previ\sly s]vic$     
,f$]al /ud5t loans1 ! pa/ p]=mance ( !  
s]vic] comp>$ to o!r simil>ly situat$   
s]vic]s1 includ+-- 7,a7 ! levels (      
consum] satisfaction report$ ) respect  
to su* s]vic]2 &  7,b7 ! quality (      
cu/om] s]vice practices & ! demon/rat$  

ability ( ! s]vic] to prev5t errors &   
disruptions 9 s]vices 9 ! ev5t a /ud5t  
loan is transf]r$ to or f ! s]vic]1 z   
measur$ by any quantitative or          
qualitative factors ! ,secret>y det]m9es
 appropriate = analysis4  7#c7 ,any     
p5alties or o!r punitive measures       
previ\sly impos$ on ! s]vic] by !       
,dep>tm5t z a result ( ! s]vic]'s       
misconduct1 failure to adequately       
support borr[]s1 or inability to meet ! 
t]ms & conditions ( a s]vic+ agreem5t ) 
! ,dep>tm5t4  7#d7 ,any legal action    
previ\sly tak5 aga9/ ! s]vic]1 includ+  
any legal action tak5 by a ,/ate4  7#e7 
,! ability ( ! s]vic] to capture        
necess>y data reg>d+ borr[]s & !        
eligible ,f$]al /ud5t loans held by     
borr[]s 9 ! ev5t su* loans are transf]r$
 to ! s]vic]1 includ+ ! ability ( !     
s]vic] to ga!r all in=mation relat$ to !
 repaym5t hi/ory ( a borr[] & relevant  
consum] demographic data prior to s]vic+
 su* loans4  7#f7 ,! ability ( ! s]vic] 
to provide t>get$ s]vices1 includ+      

p]sonaliz$ c\nsel+ & o!r high-quality   
s]vices1 = borr[]s mo/ at risk ( default
 & del9qu5cy1 includ+ borr[]s :o h      
previ\sly default$4  7#g7 ,! demon/rat$ 
ability ( ! s]vic]-- 7,a7 to support    
borr[]s f traditionally und]repres5t$   
communities by provid+ in=mation ?r\gh !
 =ms describ$ 9 subsection 7f7 & ?r\gh  
automatic website translation1 & s]vices
 9 multiple languages 7includ+ ,spani%1 
,m&>91 ,haitian ,creole1 ,arabic1 & o!r 
languages72 &  7,b7 to provide          
appropriate access & support = borr[]s )
 disabilities4  7b7 ,requir$ contract   
t]ms ,z "p ( any contract or o!r        
agreem5t betwe5 ! ,dep>tm5t & a ,f$]al  
/ud5t loan s]vic]1 ! s]vic] %all agree  
to ! foll[+ t]ms3 7#a7 ,! s]vic] %all   
place a borr[]'s loans into an          
adm9i/rative =be>ance1 dur+ :i* int]e/  
%all n accrue1 dur+ any p]iod 9 :i* !   
s]vic] has id5tifi$ a s]vic] error b has
 n yet correct$ ! error4  7#b7 ,= a     
borr[] :o has submitt$ a c]tification ( 
! borr[]'s employm5t /atus or income =  

purposes ( ! public s]vice loan =giv5ess
 program "u section #dee7m7 or an       
income-driv5 repaym5t plan1             
respectively1 ! s]vic] %all provide     
cr$it t[>d loan =giv5ess "u t program or
 plan =-- 7,a7 any p]iod dur+ :i* !     
borr[]-- 7i7 0 9 adm9i/rative =be>ance  
due to a s]vic] error z describ$ 9      
p>agraph 7#a72 &  7ii7 w\ld h o!rwise   
qualifi$ = cr$it t[>d =giv5ess if n =   
su* =be>ance2 or  7,b7 any o!r p]iod    
dur+ :i* ! borr[] w\ld h qualifi$ =     
cr$it t[>d =giv5ess if n = a s]vic]     
error4  7#c7 ,! s]vic] %all provide     
appropriate rem$ies to a borr[] 9 ! ev5t
 a s]vic] error results 9 f9ancial h>m  
to ! borr[] 7z det]m9$ by ! ,secret>y71 
includ+-- 7,a7 refund+ ov]paym5ts on a  
loan made due to a s]vic] error2  7,b7  
reimburs+ a borr[] = fees & o!r exp5ses1
 su* z insuffici5t funds fees1 incurr$  
by ! borr[] z a result ( a s]vic] error2
 &  7,c7 su* o!r rem$ies z ! ,secret>y  
det]m9es appropriate4  7#d7 ,! s]vic]   
%all ensure t cr$it report+ ag5cies     

remove del9qu5cies or o!r negative      
in=mation f ! cr$it reports ( a borr[]  
if ! negative cr$it in=mation 0 a result
 ( an error by ! s]vic]4  7#e7 ,! s]vic]
 %all ma9ta9 all records conc]n+ !      
acc\nt ( a borr[]-- 7,a7 = ! p]iod dur+ 
:i* ! s]vic] s]vices any loan ( !       
borr[]2 &  7,b7 = a p]iod ( n less ?an  
#c ye>s aft]-- 7i7 ! loans ( a borr[] h 
be5 paid 9 full1 dis*>g$1 or assign$ to 
collection2  7ii7 ! acc\nt has be5      
transf]r$ to ano!r s]vic]2 or  7iii7 !  
s]vic] o!rwise ceases ! s]vic+ ( su*    
loans4  7#f7 ,! s]vic] %all abide by any
 decision ( ! ,secret>y to revoke !     
contract 9 accordance ) subsection 7e74 
7c7 ,applicability  7#a7 ,contracts     
cov]$ ,subsections 7a7 & 7b7 %all apply 
) respect to contracts & o!r agreem5ts  
ent]$ into on or aft] ! date t is #ij   
days aft] ! date ( enactm5t ( ! ,/ud5t  
,loan ,s]vic]s ,acc\ntability ,act (    
#bjbd4  7#b7 ,special rule ,!           
requirem5ts ( p>agraphs 7#a7 ?r\gh 7#e7 
( subsection 7b7 %all apply to ! actions

 ( ! ,dep>tm5t 9 directly adm9i/]+ !    
public s]vice loan =giv5ess program "u  
section #dee7m71 income-driv5 repaym5t  
plans1 & o!r =giv5ess & repaym5t        
programs au?oriz$ "u ?is ,act 9 ! same  
mann] z su* requirem5ts apply to ,f$]al 
/ud5t loan s]vic]s4  7d7 ,review (      
legacy contracts ,n lat] ?an #ahj days  
aft] ! date ( enactm5t ( ! ,/ud5t ,loan 
,s]vic]s ,acc\ntability ,act ( #bjbd1 ! 
,secret>y %all conduct a review ( all   
legacy /ud5t loan s]vic+ contracts to   
det]m9e :e!r su* contracts1 & ! ,f$]al  
/ud5t loan s]vic]s provid+ s]vices "u   
su* contracts1 align ) ! requirem5ts set
 =? 9 subsections 7a7 & 7b74 ,!         
,secret>y %all use ! results ( su*      
review to in=m any decision ( !         
,secret>y to cont9ue or r5ew su* a      
contract4  7e7 ,revocation  7#a7 ,9     
g5]al ,subject to p>agraph 7#b71 !      
,secret>y may revoke a contract or o!r  
agreem5t betwe5 ! ,dep>tm5t & a cov]$   
s]vic] or v5dor if ! ,secret>y det]m9es 
t ! cov]$ s]vic] or v5dor kn[+ly )held  

in=mation or made misrepres5tations to !
 ,dep>tm5t 9 connection ) ! vett+       
process describ$ 9 subsection 7a7 or any
 elem5t ( a contract ent]$ into "u      
subsection 7b74  7#b7 ,notice ,9 ! ev5t 
! ,secret>y det]m9es t a cov]$ s]vic] or
 v5dor describ$ 9 p>agraph 7#a7 )held   
in=mation or made misrepres5tations z   
describ$ 9 su* p>agraph1 ! ,secret>y    
%all provide ! cov]$ s]vic] or v5dor 7z 
! case may be7 ) reasonable notice ( su*
 det]m9ation & an opportunity = a he>+  
be=e mak+ tak+ f9al action to revoke !  
contract or o!r agreem5t conc]n$4  7f7  
,in=mation 9 multiple languages ,!      
,secret>y & ! ,director ( ! ,(fice (    
,managem5t & ,budget %all ensure t =ms &
 o!r in=mation relat+ ! rights ( borr[]s
 "u ?is section are made available 9    
multiple languages 7includ+ ,spani%1    
,m&>91 ,haitian ,creole1 ,arabic1 & o!r 
languages7 & are accessible to borr[]s )
 disabilities4  7g7 ,report to ,congress
 ,n lat] ?an #a ye> aft] ! date (       
enactm5t ( ! ,/ud5t ,loan ,s]vic]s      

,acc\ntability ,act ( #bjbd1 & on an    
annual basis !reaft]1 ! ,secret>y %all  
submit to ,congress a report t evaluates
 ! /atus ( compliance ) ?is section1    
includ+ ! compliance (-- 7#a7 !         
,dep>tm5t2 &  7#b7 cov]$ s]vic]s &      
v5dors4  7h7 ,def9itions ,9 ?is section3
 7#a7 ,cov]$ s]vic] or v5dor ,! t]m     
cov]$ s]vic] or v5dor includes-- 7,a7 a 
,f$]al /ud5t loan s]vic]2  7,b7 a v5dor 
9 ! ,unifi$ ,s]vic+ & ,data ,solution   
sy/em2  7,c7 a bus9ess process op]ation 
v5dor2 &  7,d7 a v5dor or s]vic] z      
designat$ by ! ,secret>y4  7#b7 ,f$]al  
/ud5t loan ,! t]m ,f$]al /ud5t loan     
means a loan made "u "p ,b1 ,d1 or ,e t 
is held by ! ,dep>tm5t4  7#c7 ,f$]al    
/ud5t loan s]vic] ,! t]m ,f$]al /ud5t   
loan s]vic] means any individual1 ,/ate1
 or private1 =-pr(it or nonpr(it        
organization1 :i* ent]s into1 or seeks  
to ent] into1 a contract ) ! ,secret>y  
to adm9i/]1 ?r\gh ei!r manual or        
automat$ process+1 any aspect ( a ,f$]al
 /ud5t loan program1 includ+ monitor+1  

process+1 s]vic+1 or collect+ loans4    
7#d7 ,legacy /ud5t loan s]vic+ contract 
,! t]m legacy /ud5t loan s]vic+ contract
 means a contract betwe5 ! ,dep>tm5t & a
 ,f$]al /ud5t loan s]vic] t-- 7,a7 0    
ent]$ into be=e ! date t is #ij days    
aft] ! date ( enactm5t ( ! ,/ud5t ,loan 
,s]vic]s ,acc\ntability ,act ( #bjbd2 & 
7,b7 0 9 effect z ( su* date4  4  7b7   
,con=m+ am5dm5t to ,,pslf ,section      
#dee7m7 ( ! ,high] ,education ,act (    
#aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is     
am5d$ by add+ at ! end ! foll[+3  7#e7  
,treatm5t ( c]ta9 p]iods ( =be>ance ,ea*
 mon? dur+ :i* an eligible ,f$]al       
,direct ,loan is 9 an adm9i/rative      
=be>ance describ$ 9 section             
#did;,a7b77#a7 %all be treat$ z a       
qualify+ paym5t c\nt$ = purposes (      
p>agraph 7#a77;,a71 reg>dless ( :e!r !  
borr[] made a paym5t on su* loan dur+   
su* p]iod4  4  #c4 ,comptroll] ,g5]al   
/udy & report  7a7 ,/udy ,! ,comptroll] 
,g5]al ( ! ,unit$ ,/ates %all conduct a 
/udy-- 7#a7 to det]m9e h[ & to :at ext5t

 ! transf] ( ,f$]al /ud5t loans to      
,f$]al /ud5t loan s]vic]s leads to      
disruptions 9 repaym5t or s]vic] errors 
t affect ! cr$it rat+s ( borr[]s ( su*  
loans1 :i* %all include evaluation (--  
7,a7 negative effects result+ f a       
s]vic]'s failure to ma9ta9 accurate1    
up-to-date in=mation on ! /atus ( a     
borr[]'s acc\nt2  7,b7 ! root causes (  
su* failures1 su* z errors caus$ by a   
lack ( compatibility betwe5 ! in=mation 
te*nology sy/ems ( diff]5t ,f$]al /ud5t 
loans s]vic]s2 &  7,c7 h[ su* failures  
impact borr[]s1 su* z by pres5t+ borr[]s
 ) inaccurate acc\nt balances1          
inaccurate or incomplete paym5t         
hi/ories1 & miscalculat$ mon?ly paym5t  
am\nts2  7#b7 to develop1 9 consultation
 ) ! ,director ( ! ,bureau ( ,consum]   
,f9ancial ,protection1 recomm5dations to
 assi/ ! ,dep>tm5t ( ,education 9       
mitigat+ any negative effects ( su*     
transf]s on ! cr$it rat+s ( borr[]s2    
7#c7 to det]m9e h[ & to :at ext5t s]vic+
 errors1 s]vic] noncompliance ) ,/ate or

 ,f$]al requirem5ts1 or s]vic] failure  
to provide timely & accurate in=mation  
to borr[]s negatively impacts ! cr$it   
scores ( borr[]s or o!rwise results 9   
h>m to borr[]s2  7#d7 to assess !       
effectiv5ess ( ! processes us$ by       
s]vic]s to receive & respond to consum] 
compla9ts1 includ+-- 7,a7 s]vic]        
requirem5ts reg>d+ h[ compla9ts c be    
fil$2 &  7,b7 s]vic] processes = track+1
 inve/igat+1 resolv+1 & address+ ! root 
causes ( consum] compla9ts1 includ+     
compla9ts submitt$ ?r\gh ! websites &   
fe$back sy/ems ( ! ,dep>tm5t (          
,education2 &  7#e7 to det]m9e h[ !     
,unifi$ ,s]vic+ & ,data ,solution w     
effectively address errors & o!r issues 
aris+ f ! transf] ( ,f$]al /ud5t loans  
to & f diff]5t s]vic]s4  7b7 ,comptroll]
 ,g5]al report ,n lat] ?an two ye>s aft]
 ! date ( ! enactm5t ( ?is ,act1 !      
,comptroll] ,g5]al %all submit to !     
appropriate congressional committees a  
report on ! results ( ! /udy conduct$ "u
 subsection 7a74  7c7 ,def9itions ,9 ?is

 section3 7#a7 ,appropriate             
congressional committees ,! t]m         
appropriate congressional committees    
means-- 7,a7 ! ,committee on ,heal?1    
,education1 ,labor1 & ,p5sions ( !      
,s5ate2 &  7,b7 ! ,committee on         
,education & ! ,work=ce ( ! ,h\se (     
,repres5tatives4  7#b7 ,f$]al /ud5t     
loan2 f$]al /ud5t loan s]vic] ,! t]ms   
,f$]al /ud5t loan & ,f$]al /ud5t loan   
s]vic] h ! mean+s giv5 ^? t]ms 9 section
 #did;,a ( ! ,high] ,education ,act (   
#aife 7z add$ by section #b ( ?is ,act74