H.R. 7671: Students and Young Consumers Empowerment Act

The bill, titled the Students and Young Consumers Empowerment Act, aims to enhance protections and assistance for student loan borrowers by creating a new position within the Bureau of Consumer Financial Protection (Bureau). This legislation is designed to foster better coordination between the Bureau and the Department of Education regarding student loan issues. Here are the key features of the bill:

1. Establishment of a New Position

- The bill establishes the role of an Assistant Director and Student Loan Borrower Advocate within the Bureau. This advocate will be responsible for leading an office focused specifically on issues related to students and young consumers.

2. Duties of the Assistant Director and Student Loan Borrower Advocate

- The Advocate will: - Serve as the head of the newly established Office for Students and Young Consumers. - Collaborate with the Secretary of Education and other related officials to create a memorandum of understanding, which will facilitate coordination on resolving borrower complaints regarding private and federal student loans. - Accept and manage complaints from borrowers related to private education loans and federal student loans. - Prepare and submit annual reports to Congress detailing complaints received and offering recommendations to improve protections for borrowers.

3. Enhanced Collaboration between Agencies

- The bill mandates improved communication and cooperation between the Bureau and the Department of Education. This includes: - Sharing databases and information to streamline complaint processes. - Coordinating supervision and oversight of entities involved in student financial services. - Establishing regular meetings to discuss trends in complaints and resolutions, and to review the complaints regarding both private and federal loan issues.

4. Reporting Requirements

- The Assistant Director is required to periodically compile data on complaints and prepare reports that detail student loan market activities and highlight risks for consumers.- The Department of Education will also have responsibilities for tracking and addressing complaints related to federal student loans, ensuring that borrowers have clear pathways for resolving issues.

5. Consumer Financial Product Education

- The Act authorizes the establishment of initiatives aimed at educating students and families about consumer financial products, helping them make informed financial decisions.

6. Access to Information

- The Assistant Director will have the authority to gather information on the business conduct and activities of service providers in the student financial market, while ensuring that there are safeguards for consumers' personal information.

7. Responsibilities Relating to Complaints

- The bill specifies the handling of complaints related to Title IV loans (federal student loans) and mandates that these complaints be communicated efficiently between the Bureau and the Department of Education.

8. Cost-Bearing and Interagency Agreements

- Both the Bureau and the Department are required to handle their own costs related to compliance with this legislation. Any fund transfers between the two agencies will need to be formalized through an interagency agreement.

9. Additional Provisions

- Nothing in this bill limits existing authorities or prohibits the establishment of additional policies through memoranda of understanding between the Bureau and the Department.

Relevant Companies

None found