February 25, 2026
Ms. Bonamici (for herself, Ms. Lee of Pennsylvania, Ms. Bynum, Ms. Norton, and Mr. Thanedar) introduced the following bill; which was referred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To amend the Consumer Financial Protection Act of 2010 to establish the position of the Assistant Director and Student Loan Borrower Advocate of the Bureau of Consumer Financial Protection, to provide a framework for the Bureau of Consumer Financial Protection and the Department of Education to coordinate in providing assistance to and serving borrowers seeking to resolve complaints related to their private education or Federal student loans, and for other purposes.
Section 1. Short title; table of contents
(a) Short title
This Act may be cited as the Students and Young Consumers Empowerment Act
.
(b) Table of contents
The table of contents for this Act is as follows:
Title I Students and Young Consumers Empowerment
Sec. 101. Assistant Director and Student Loan Borrower Advocate
(a) In general
Section 1035 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5535) is amended to read as follows:
1035. Assistant Director and Student Loan Borrower Advocate
(a) Establishment
There is established the position of Assistant Director and Student Loan Borrower Advocate, who shall be appointed by the Director.
(b) Duties
The Assistant Director and Student Loan Borrower Advocate shall—
(1)
serve as the head of the Office for Students and Young Consumers established under subsection (e);
(2)
not later than the end of the 60-day period beginning on the date of enactment of this section, enter into a memorandum of understanding with the Secretary of Education, the Chief Operating Officer appointed under section 141(d) of the Higher Education Act of 1965 (20 U.S.C. 1018(d)), and the Student Loan Ombudsman appointed under section 141(f) of the Higher Education Act of 1965 (20 U.S.C. 1018(f)) that—
(A)
ensures coordination in providing assistance to and serving borrowers seeking to resolve complaints related to their private education loans or Federal student loans; and
(B)
authorizes the Bureau to access all relevant Department of Education information systems, records, and data, including any relevant information systems, records, or data maintained by contractors of the Department of Education;
(3)
accept and attempt to resolve complaints from borrowers with both private education loans and Federal student loans, including complaints against lenders, servicers, and debt collectors; and
(4)
carry out such other duties as the Director may determine appropriate.
(c) Notification to Congress
The Director shall provide written notice and an explanation to the appropriate congressional committees, if—
(1)
the position of the Assistant Director and Student Loan Borrower Advocate has been vacant for a period of 60 days or more; or
(2)
the memorandum of understanding required under subsection (b)(2) has lapsed for a period of 60 days or more.
(d) Reports
(1) Annual report on the student loan marketplace
The Assistant Director and Student Loan Borrower Advocate shall—
(A)
compile and analyze complaints from borrowers with Federal student loans or private education loans;
(B)
not less than once per year, submit a report to Congress summarizing the activities of the Assistant Director and Student Loan Borrower Advocate in the previous year and including an independent evaluation of risks to consumers posed by policies and practices in the student loan marketplace; and
(C)
as part of each report submitted in accordance with subparagraph (B), and any other time deemed prudent by the Student Loan Borrower Advocate, make recommendations to the Director, the Secretary of the Treasury, the Secretary of Education, and the appropriate congressional committees to address risk to student loan borrowers and strengthen the student loan marketplace.
(2) Annual report on campus banking
Not less than once per year, the Assistant Director and Student Loan Borrower Advocate shall issue a report to the appropriate congressional committees analyzing the use of consumer financial products and services by students enrolled at institutions of higher education, including an evaluation of contracts and other financial arrangements between institutions of higher education and providers of consumer financial products and services, including an evaluation of revenue sharing provisions, marketing provisions, and fees assessed to students who use such products and services.
(3) Report on risks to young consumers
Not less than once per year, the Assistant Director and Student Loan Borrower Advocate shall issue a report to the appropriate congressional committees containing an analysis of complaints submitted to the Bureau by young consumers during the previous year and offering an independent evaluation of risks to consumers posed by policies and practices in the marketplace for consumer financial products and services.
(e) Office for Students and Young Consumers
There is established an Office for Students and Young Consumers, which shall be responsible for developing and implementing initiatives for students, young consumers, and their families intended to—
(1)
educate and empower students, young consumers, and their families to make better informed decisions regarding consumer financial products and services; and
(2)
coordinate efforts among Federal and State agencies, as appropriate, regarding consumer protection measures relating to consumer financial products and services offered to, or used by, students, young consumers, and their families.
(f) Collection of information; market monitoring
(1) In general
In carrying out this section, the Assistant Director and Student Loan Borrower Advocate shall have the authority to gather information from time to time regarding the organization, business conduct, markets, and activities of covered persons and service providers.
(2) Sources of information
In gathering information described under paragraph (1), the Assistant Director and Student Loan Borrower Advocate may gather and compile information from a variety of sources, including examination reports concerning covered persons or service providers, consumer complaints, voluntary surveys and voluntary interviews of consumers, surveys and interviews with covered persons and service providers, and review of available databases.
(3) Authority to require reports and other information
The Director shall, upon the recommendation of the Assistant Director and Student Loan Borrower Advocate, require covered persons and service providers participating in consumer financial services markets to file with the Bureau, under oath or otherwise, in such form and within such reasonable period of time as the Bureau may prescribe by rule or order, annual or special reports, answers in writing to specific questions, or other information described under section 1022(c)(4).
(4) Limitation
The Bureau may not use its authorities under this subsection to obtain records from covered persons and service providers participating in consumer financial services markets for purposes of gathering or analyzing the personally identifiable financial information of consumers.
(g) Definitions
For purposes of this section:
(1) Appropriate congressional committees
The term appropriate congressional committees means the Committees on Education and Labor and Financial Services of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Health, Education, Labor, and Pensions of the Senate.
(2) Truth in Lending Act terms
The terms private education loan and institution of higher education have the meanings given those terms, respectively, under section 140 of the Truth in Lending Act (15 U.S.C. 1650).
(b) Clerical amendment
The table of contents under section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended, in the item relating to section 1035, by striking Private Education Loan Ombudsman
and inserting Assistant Director and Student Loan Borrower Advocate
.
Sec. 102. Duties of the Department of Education
Part D of title I of the Higher Education Act of 1965 (20 U.S.C. 1018 et seq.) is amended by adding at the end the following:
144. Memorandum of understanding with the Assistant Director and Student Loan Borrower Advocate
Not later than the end of the 60-day period beginning on the date of enactment of this section, the Secretary of Education, the Chief Operating Officer appointed under section 141(d), and the Student Loan Ombudsman appointed under section 141(f) shall enter into a memorandum of understanding with the Assistant Director and Student Loan Borrower Advocate of the Bureau of Consumer Financial Protection that—
(1)
ensures coordination in providing assistance to and serving borrowers seeking to resolve complaints related to their private education loans or loans made, insured, or guaranteed under title IV; and
(2)
authorizes the Bureau to access all relevant Department information systems, records, and data, including any relevant information systems, records, or data maintained by contractors of the Department.
Title II Student Loan Integrity and Transparency
Sec. 201. Definitions
In this title:
(1) Agency
The term agency means the Bureau or the Department, as applicable, and the term agencies means both the Bureau and the Department.
(2) Bureau
The term Bureau means the Bureau of Consumer Financial Protection.
(3) Complaint
The term complaint means a comment, inquiry, or request for assistance from a student loan borrower.
(4) Department
The term Department means the Department of Education.
(5) Assistant Director
The term Assistant Director means the Assistant Director and Student Loan Borrower Advocate of the Bureau.
(6) Federal consumer financial law
The term Federal consumer financial law has the meaning given that term under section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).
(7) Institution of higher education
The term institution of higher education has the meaning given that term under section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
(8) Nonpublic information
The term nonpublic information means—
(A)
confidential information, as such term is defined under section 1070.2 of title 12, Code of Federal Regulations;
(B)
any information collected by the Department from persons engaged in student financial services activities pursuant to the Department’s oversight and other authorities that is not publicly available; and
(C)
the name, address, or other personally identifiable information relating to any consumer, including any information so designated by a provider of information.
(9) Private education loan
The term private education loan has the meaning given that term under section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
(10) Provider
With respect to information shared between the agencies, the term provider means the agency providing the information to the other agency.
(11) Receiver
With respect to information shared between the agencies, the term receiver means the agency receiving the information from the other agency.
(12) Secretary
The term Secretary means the Secretary of Education.
(13) Student financial services
The term student financial services means consumer financial products or services (as defined under section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481)) that are related to students of institutions of higher education, including student loan origination and student loan servicing.
(14) Title IV loans
The term title IV loans means loans made, insured, or guaranteed under title IV of the Higher Education Act of 1965.
Sec. 202. Cooperation between the Bureau and the Department
(a) In general
The Assistant Director and the Secretary shall—
(1)
establish points of contact between the Bureau and the Department with respect to Bureau supervision and Department oversight matters that are of common jurisdiction to both the Bureau and the Department;
(2)
share with each other the Bureau’s schedule of examinations and the Department’s schedule of reviews of persons engaged in offering or providing student financial services that are subject to the Bureau’s supervisory authority and the Department’s oversight authority;
(3)
coordinate the Bureau’s supervision activities and the Department’s oversight activities to promote the efficient use of resources;
(4)
meet at least quarterly to discuss observations about the nature of complaints received by the Bureau and the Department, characteristics of borrowers, and available information about resolution of complaints, as well as analysis and recommendations; and
(5)
work to ensure the Bureau and the Department understand the respective reporting categories and definitions of each agency and how such categories and definitions relate to each other for comparison.
(b) Sharing of information
(1) Bureau access to Department databases
For the purpose of the Bureau’s congressional reporting, research, market analysis, complaint resolution, enforcement, supervision, financial education, engagement, and rulemaking needs, the Secretary shall work with the Bureau to provide the Bureau with access to Department databases, as applicable.
(2) Consumer complaints
(A) Bureau access to Department consumer complaints
The Assistant Director may request and obtain information from the Secretary concerning consumer complaints and other information pertaining to specific entities or classes of entities that are relevant to the exercise of the Bureau’s supervisory, enforcement, or regulatory functions.
(B) Sharing of student loan borrower complaints
(i) In general
The Assistant Director and the Secretary shall transfer each complaint received by their agency from student loan borrowers to the other agency.
(ii) Deadline for sharing certain complaints
With respect to a complaint received by the Bureau related to the origination, disbursement, or servicing of a title IV loan or a complaint received by the Department related to a private education loan, the applicable agency shall direct the complaint to the other agency within 10 days of receipt of the complaint.
(C) Addressing complaints related to defaulted title IV loans
The Assistant Director and the Secretary shall establish an efficient collaborative process to address complaints received by the Bureau about private collection agency actions related to defaulted title IV loans.
(D) Standards for the format and sharing of complaint data
(i) Format
In providing complaint data described under this paragraph, the Assistant Director and the Secretary shall provide the complaint data in a secure, digital format.
(ii) Process
The Assistant Director and the Secretary shall establish an efficient, secure, and legally compliant process to provide complaint data.
(3) Certain tax return information
Section 6103(l)(13)(D) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
(vii) Redisclosure to the Bureau of Consumer Financial Protection
Authorized persons may redisclose return information received under subparagraph (C) to the Assistant Director and Student Loan Borrower Advocate of the Bureau of Consumer Financial Protection to the extent necessary to carry out the oversight activities of the Bureau of Consumer Financial Protection.
(4) Other information
In addition to the information permitted to be shared under this section, the Assistant Director and the Secretary may share any other information with each other as the Assistant Director and the Secretary determine appropriate.
(5) Amendment to title 5
Section 552a(b) of title 5, United States Code, is amended—
(A)
in paragraph (12), by striking or
at the end;
(B)
in paragraph (13), by striking the period at the end and inserting ; or
; and
(C)
by adding at the end the following:
(14)
a disclosure between the Secretary of Education and the Assistant Director and Student Loan Borrower Advocate of the Bureau of Consumer Financial Protection authorized under the Students and Young Consumers Empowerment Act.
(6) Data privacy
(A) Memorandum of understanding
The Assistant Director and the Secretary shall enter into one or more memoranda of understanding to address data privacy issues related to information shared between the Bureau and the Department pursuant to this title.
(B) Safeguarding nonpublic information
The Assistant Director and the Secretary shall establish and maintain such safeguards as are necessary and appropriate to protect the confidentiality of any nonpublic information received by their agency pursuant to this title (as well as any derived information), including—
(i)
restricting access to the nonpublic information to only those of officers, employees, and contractors who have a need for such information to carry out the receiver’s responsibilities under applicable law;
(ii)
informing those persons who are provided access to the nonpublic information of their responsibilities under this title; and
(iii)
ensuring that the nonpublic information is protected in accordance with the standards applicable to Federal agencies for protection of the privacy and confidentiality of personally identifiable information and for data security and integrity.
(c) Handling of complaints by the Bureau
The Assistant Director shall—
(1)
accept complaints related to private education loans and the servicing of title IV loans; and
(2)
process such complaints, including, where appropriate, providing the complaints to the applicable servicer and providing any response from the servicer to the borrower, in accordance with section 1034 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5534).
(d) Title IV loan servicer requirement
The Secretary may not enter into an agreement with a contractor or vendor for the servicing of title IV loans unless the contractor or vendor, as part of that agreement, agrees to provide the Bureau, upon request, any information that the contractor or vendor is required to provide the Department.
(e) Responsibilities of the agencies by type of complaint
(1) Complaints regarding the title IV loan programs
With respect to complaints regarding the title IV loan programs, the Department is responsible for—
(A)
program issue resolution;
(B)
attempting to resolve such complaints; and
(C)
as appropriate, discussing such complaints with the Bureau regarding the impact, if any, on Federal consumer financial law.
(2) Complaints regarding title IV loans with Federal consumer financial law issues
(A) In general
With respect to complaints regarding title IV loans with Federal consumer financial law issues—
(i)
the Department shall collaborate with the Bureau;
(ii)
the Bureau is responsible for providing the Department with expertise, analysis, and recommendations regarding resolution consistent with Federal consumer financial law; and
(iii)
the Department is responsible for attempting to resolve informally such complaints, in accordance with section 141(f)(3)(A) of the Higher Education Act of 1965 (20 U.S.C. 1018(f)(3)(A)), with the Bureau’s input.
(B) Interagency process to discuss, track, and resolve complaints
The Assistant Director and the Secretary shall determine an efficient process to—
(i)
discuss and track complaints related to both a title IV loan and a private education loan; and
(ii)
collaborate, where possible, to attempt to resolve such complaints, including through the use of the ombudsmen established under section 1035 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5535) and section 141(f) of the Higher Education Act of 1965 (20 U.S.C. 1018(f)).
(3) Complaints regarding private education loans with Federal consumer financial law issues
With respect to complaints regarding private education loans, the Bureau is responsible for—
(A)
attempting to resolve informally such complaints, in accordance with section 1035(c)(1) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5535(c)(1)); and
(B)
as appropriate, discussing issues with the Department regarding products offered by institutions of higher education or to students or prospective students, or other issues that may impact Federal programs overseen by the Department.
(f) Payment of costs
(1) In general
The Bureau and the Department shall each bear its own costs of complying with this title.
(2) Interagency agreement for transfer of funds
If funds are transferred between the Bureau and the Department for the provision of goods or services authorized by this title, including access to Department databases described under subsection (b)(1), such transfer shall be accomplished by a separate interagency agreement.
(g) Rules of Construction
(1)
Nothing in this title may be construed to limit the existing authorities of the Bureau or the Department.
(2)
Nothing in this title may be construed to prohibit the Bureau or the Department from entering into memoranda of understanding to establish additional policies and procedures related to the requirements of this title.
(3)
Nothing in this title may be construed to prevent an agency from complying with a legally valid or enforceable order of a court of competent jurisdiction, or, if compliance is compulsory, with a request or demand from a duly authorized committee of the United States Senate or House of Representatives.