[116th Congress Public Law 251]
[From the U.S. Government Publishing Office]
[[Page 134 STAT. 1129]]
Public Law 116-251
116th Congress
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 act. <<NOTE: Dec. 22,
2020 - [S. 1153]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Stop Student
Debt Relief Scams Act of 2019. 20 USC 1001 note.>>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Student Debt Relief Scams Act of
2019''.
SEC. 2. CRIMINAL PENALTIES.
(a) In General.--Section 490 of the Higher Education Act of 1965 (20
U.S.C. 1097) is amended by adding at the end the following:
``(e) Access to Department of Education Information Technology
Systems for Fraud, Commercial Advantage, or Private Financial Gain.--Any
person who knowingly uses an access device, as defined in section
1029(e)(1) of title 18, United States Code, 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 gain, or in furtherance of any criminal or tortious
act in violation of the Constitution or laws of the United States or of
any State, shall be fined not more than $20,000, imprisoned for not more
than 5 years, or both.''.
(b) <<NOTE: 20 USC 1097 note.>> Guidance.--The Secretary shall
issue guidance regarding the use of access devices in a manner that
complies with this Act, and the amendments made by this Act.
(c) <<NOTE: 20 USC 1097 note.>> Effective Date of Penalties.--
Notwithstanding section 6, the penalties described in section 490(e) of
the Higher Education Act of 1965 (20 U.S.C. 1097), as added by
subsection (a), shall take effect the day after the date on which the
Secretary issues guidance regarding the use of access devices, as
described in subsection (b).
SEC. 3. LOAN COUNSELING.
Section 485(b) of the Higher Education Act of 1965 (20 U.S.C.
1092(b)) is amended--
(1) in clause (viii), by striking ``and'' after the
semicolon; and
(2) by adding at the end the following:
``(x) an explanation that--
[[Page 134 STAT. 1130]]
``(I) the borrower may be contacted
during the repayment period by third-
party student debt relief companies;
``(II) the borrower should use
caution when dealing with those
companies; and
``(III) the services that those
companies typically provide are already
offered to borrowers free of charge
through the Department or the borrower's
servicer; and''.
SEC. 4. PREVENTION OF IMPROPER ACCESS.
Section 485B of the Higher Education Act of 1965 (20 U.S.C. 1092b)
is amended--
(1) by redesignating subsections (e) through (h) as
subsections (f) through (i), respectively;
(2) in subsection (d)--
(A) in paragraph (5)(C), by striking ``and'' after
the semicolon;
(B) in paragraph (6)(C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(7) 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 plan,
consolidation loan, or other benefit authorized by this title,
unless such access meets the requirements described in
subsection (e).'';
(3) by inserting after subsection (d) the following:
``(e) Requirements for Third-Party Data System Access.--
``(1) In general.--As provided in paragraph (7) of
subsection (d), an authorized person or entity described in
paragraph (2) may access the data system and any other system
used to administer a program under this title if that access--
``(A) <<NOTE: Federal Register, publication.>> is
in compliance with terms of service, information
security standards, and a code of conduct which shall be
established by the Secretary and published in the
Federal Register;
``(B) is obtained using an access device (as defined
in section 1029(e)(1) of title 18, United States Code)
issued by the Secretary to the authorized person or
entity; and
``(C) is obtained without using any access device
(as defined in section 1029(e)(1) of title 18, United
States Code) issued by the Secretary to a student,
borrower, or parent.
``(2) <<NOTE: Definition.>> Authorized person or entity.--
An authorized person or entity described in this paragraph
means--
``(A) a guaranty agency, eligible lender, or
eligible institution, or a third-party organization
acting on behalf of a guaranty agency, eligible lender,
or eligible institution, that is in compliance with
applicable Federal law (including regulations and
guidance); or
``(B) <<NOTE: Determinations.>> a licensed attorney
representing a student, borrower, or parent, or another
individual who works for a Federal, State, local, or
Tribal government or agency, or for a nonprofit
organization, providing financial or student loan
repayment counseling to a student, borrower, or parent,
if--
[[Page 134 STAT. 1131]]
``(i) that attorney or other individual has
never engaged in unfair, deceptive, or abusive
practices, as determined by the Secretary;
``(ii) that attorney or other individual does
not work for an entity that has engaged in unfair,
deceptive, or abusive practices (including an
entity that is owned or operated by a person or
entity that engaged in such practices), as
determined by the Secretary;
``(iii) system access is provided only through
a separate point of entry; and
``(iv) the attorney or other individual has
consent from the relevant student, borrower, or
parent to access the system.''; and
(4) in subsection (f)(1), as redesignated by paragraph (1)--
(A) in subparagraph (A), by striking ``student and
parent'' and inserting ``student, borrower, and
parent'';
(B) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively;
(C) by inserting after subparagraph (B) the
following:
``(C) the reduction in improper data system access
as described in subsection (d)(7);''; and
(D) by striking subparagraph (E), as redesignated by
subparagraph (B), and inserting the following:
``(E) any protocols, codes of conduct, terms of
service, or information security standards developed
under paragraphs (6) or (7) of subsection (d) during the
preceding fiscal year.''.
SEC. 5. AGENCY PREVENTION AND DETECTION.
Section 141(b)(2) of the Higher Education Act of 1965 (20 U.S.C.
1018(b)(2)) is amended by adding at the end the following:
``(C) Taking action to prevent and address the
improper use of access devices, as described in section
485B(d)(7), including by--
``(i) detecting common patterns of improper
use of any system that processes payments on
Federal Direct Loans or other Department
information technology systems;
``(ii) 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
systems;
``(iii) 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 accounts; and
``(iv) providing clear and simple disclosures
in communications with borrowers who are applying
for or requesting assistance with Federal Direct
Loan programs (including assistance or
applications regarding income-driven repayment,
forbearance, deferment, consolidation,
rehabilitation, cancellation, and forgiveness) to
ensure that borrowers are aware that the
Department will never require borrowers to pay for
such assistance or applications.''.
[[Page 134 STAT. 1132]]
SEC. 6. <<NOTE: 20 USC 1018 note.>> EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the date that is 180 days after the date of enactment of this Act.
Approved December 22, 2020.
LEGISLATIVE HISTORY--S. 1153:
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CONGRESSIONAL RECORD, Vol. 166 (2020):
Dec. 1, considered and passed Senate.
Dec. 7, considered and passed House.
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