# Student Loan Servicers Accountability Act of 2024

This bill creates new rules for the companies that manage federal student loans, requiring them to meet higher standards and be held accountable when they make mistakes that hurt borrowers.

Right now, student loan servicers handle millions of accounts, collecting payments and helping borrowers navigate repayment options. But many borrowers have complained about errors—wrong payment amounts, lost paperwork, incorrect credit reporting, and confusion when loans transfer between servicers. This bill tries to fix those problems by setting strict requirements for which companies can service federal loans and what they must do when things go wrong.

**What the bill requires before hiring a servicer:** Before the Department of Education signs a contract with a loan servicer, it must carefully evaluate the company's track record. This includes looking at customer satisfaction ratings, how well they handle loan transfers without losing information, any past penalties or lawsuits against them, and whether they can provide services in multiple languages and support for people with disabilities. For new companies without a federal loan servicing history, the government must compare them to similar companies in other industries.

**What servicers must do when they make mistakes:** If a servicer makes an error, they have to put your loans into "administrative forbearance," meaning interest stops accumulating while they fix the problem. If the error causes you financial harm—like overdraft fees or missed payments—the servicer must refund overpayments, reimburse your expenses, and fix any damage to your credit report. For people pursuing Public Service Loan Forgiveness or income-driven repayment plans, any time lost due to a servicer error counts toward forgiveness, so you don't fall behind. Servicers must also keep detailed records of your account for at least three years after your loans are paid off or transferred.

**Oversight and accountability:** The bill requires the Department of Education to review existing contracts within six months to see if current servicers meet these new standards. The government can revoke a contract if a servicer lied or hid information during the hiring process. Additionally, Congress will receive annual reports on how well servicers and the Department itself are following these rules, and an independent study will examine how loan transfers cause problems for borrowers and recommend solutions.