# Stop Student Debt Relief Scams Technical Corrections Act

This bill makes updates to an existing law from 2019 that was designed to protect student loan borrowers from scams and fraud. The original law created rules about who can access student loan information and provide debt relief services. This new bill clarifies and adjusts those rules to make them work better in practice.

The main changes involve who is allowed to access student loan data and help borrowers with their loans. The bill expands the list of people and organizations that can legitimately access this information, including lawyers, government agencies, nonprofits, and certain for-profit companies. However, there are strict requirements: these organizations must have a good track record (no history of unfair or deceptive practices), they must get permission from the borrower before accessing their information, and they cannot charge borrowers any fees for their services. The bill also gives the Department of Education the power to approve or deny these requests and to revoke access if needed.

One important deadline the bill adds is July 1, 2021, by which the Secretary of Education must provide guidance on criminal penalties for people who commit student debt relief scams. Additionally, for for-profit companies seeking access to student loan data, the bill requires the Department of Education to review their applications within 180 days and to consult with the Consumer Financial Protection Bureau to ensure these companies are actually acting in borrowers' best interests rather than exploiting them.

In practical terms, this means borrowers might have more legitimate options for getting help with their student loans from trusted organizations, but the government is putting safeguards in place to prevent scammers from misusing the system. The bill essentially tries to balance making it easier for honest helpers to assist borrowers while keeping the door closed to fraudsters.

Stop Student Debt Relief Scams Technical Corrections Act

Rep. Stevens, Haley M. [D-MI-11]

Stop Student Debt Relief Scams Technical Corrections Act This bill revises the requirements for third-party access to the central database for student aid (i.e., the National Student Loan Data System). First, the bill directs the Department of Education (ED) to issue, by July 1, 2021, its guidance on the use of access devices. Additionally, the bill provides ED with discretion to approve applications from authorized persons or entities for third-party data access to the system. The bill also expands the categories of persons or entities that are authorized to access the system to include certain for-profit organizations.