RAB17169

S.L.C.

115TH CONGRESS
1ST SESSION

S. ll

To promote quality student loan servicing by improving the borrower
experience for borrowers of Federal Direct Loans.

IN THE SENATE OF THE UNITED STATES
llllllllll
Mr. BLUNT (for himself, Ms. WARREN, Mr. LANKFORD, and Mrs. SHAHEEN)
introduced the following bill; which was read twice and referred to the
Committee on llllllllll

A BILL
To promote quality student loan servicing by improving the
borrower experience for borrowers of Federal Direct Loans.
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Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Student Loan Servicer

5 Performance Accountability Act’’.
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SEC. 2. COMPETITION IN STUDENT LOAN SERVICING.

(a) CANCELLATION

OF

SOLICITATIONS.—The Sec-

8 retary of Education shall cancel the Department of Edu9 cation solicitations for the Federal Aid Servicing Solution
10 dated April 4, 2016 and October 26, 2016, including any

 RAB17169

S.L.C.

2
1 amendments to those solicitations (Solicitation No. ED–
2 FSA–17–R–0001 et seq).
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(b) COMPETITION

IN

STUDENT LOAN SERVICING.—

4 Section 456 of the Higher Education Act of 1965 (20
5 U.S.C. 1087f) is amended by adding at the end the fol6 lowing:
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‘‘(c) COMPETITION

IN

STUDENT LOAN SERVICING.—

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‘‘(1) COMPETITION.—As of the date of enact-

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ment of the Student Loan Servicer Performance Ac-

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countability Act, in order to promote accountability

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and high-quality services to borrowers, the Secretary

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shall not issue any contract solicitation for a new

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Federal student loan servicing solution unless such

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a solution—

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‘‘(A) provides for the participation of mul-

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tiple student loan servicers that contract di-

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rectly with the Department of Education; and

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‘‘(B) allocates student loan borrower ac-

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counts to eligible student loan servicers based

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on performance.

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‘‘(2) PROHIBITION.—The Secretary shall not

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award a contract to a single servicer to service all

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Federal Direct Loans.’’.