Sec. 204. Establishment and maintenance of complaint resolution and tracking system
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Title I ( 20 U.S.C. 1001 et seq.) is amended by adding at the end the following new part: The Secretary shall maintain a complaint tracking system that includes a single, toll-free telephone number and a website to facilitate the centralized collection of, monitoring of, and response to complaints and reports (including evidence, as available) of suspicious activity (such as unfair, deceptive, or abusive acts or practices) regarding— Federal student financial aid and the servicing of postsecondary education loans by loan servicers; educational practices and services of institutions of higher education; and the recruiting and marketing practices of institutions of higher education.
In this section— the term institution of higher education has the meaning given that term in section 102; and the term recruiting and marketing activities means activities described in section 126(d)(2) (as added by section 301 of the Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2019 ). Complaints and reports of suspicious activity submitted to the tracking system by students, borrowers of student loans, staff, or the general public— may remain anonymous, if the complainant so chooses; and may describe problems that are systematic in nature and not associated with a particular student.
The Secretary shall establish within the Department an office whose functions shall include establishing and administering the complaint tracking system, and widely disseminating information about the complaint tracking system, established under this subsection. The Secretary shall— to the extent necessary, combine and consolidate the other offices and functions of the Department to ensure that the office established under this subsection is the single point of contact for students and borrowers with complaints or reports of suspicious activity regarding Federal student financial aid, student loan servicers, educational practices and services of institutions of higher education, and recruiting and marketing activities of institutions of higher education; and to the extent practicable, ensure that the office established under this subsection will work with the Student Loan Ombudsman appointed in accordance with section 141(f) and the Student Loan Ombudsman of the Bureau of Consumer Financial Protection to assist borrowers of Federal student loans that submit complaints or reports of suspicious activity to the complaint tracking system.
The Secretary shall establish, in consultation with the heads of appropriate agencies (including the Director of the Bureau of Consumer Financial Protection), reasonable procedures to provide a response to complainants not more than 90 days after receiving a complaint in the complaint tracking system, in writing where appropriate. Each response shall include a description of— the steps that have been taken by the Secretary in response to the complaint or report of suspicious activity; any responses received by the Secretary from the institution of higher education or from a servicer; and any additional actions that the Secretary has taken, or plans to take, in response to the complaint or report of suspicious activity.
If the Secretary determines that it is necessary, the Secretary shall notify an institution of higher education or loan servicer that is the subject of a complaint or report of suspicious activity through the complaint tracking system under this subsection regarding the complaint or report and directly address and resolve the complaint or report in the system. Not later than 60 days after receiving such notice, such institution or loan servicer shall provide a response to the Secretary concerning the complaint or report, including— the steps that have been taken by the institution or loan servicer to respond to the complaint or report; all responses received by the institution or loan servicer from the complainant; and any additional actions that the institution or loan servicer has taken, or plans to take, in response to the complaint or report.
The Secretary may, in the event that the complaint is not adequately resolved or addressed by the responses of the institution of higher education or loan servicer under paragraph (2), ask additional questions of such institution or loan servicer or seek additional information from or action by the institution or loan servicer. An institution of higher education or loan servicer shall, in a timely manner, comply with a request by the Secretary for information in the control or possession of such institution or loan servicer concerning a complaint or report of suspicious activity received by the Secretary under this subsection, including supporting written documentation, subject to subparagraph (B).
An institution of higher education or loan servicer shall not be required to make available under this subsection— any nonpublic or confidential information, including any confidential commercial information; any information collected by the institution for the purpose of preventing fraud or detecting or making any report regarding other unlawful or potentially unlawful conduct; or any information required to be kept confidential by any other provision of law. An institution of higher education or loan servicer shall comply with the requirements to provide responses and information, in accordance with this subsection, as a condition of receiving funds under title IV or as a condition of the contract with the Department, as applicable.
In accordance with section 444 of the General Education Provisions Act ( 20 U.S.C. 1232g ) (commonly referred to as the Family Educational Rights and Privacy Act of 1974 ) and other laws, the Secretary shall coordinate with the heads of relevant Federal or State agencies or entities, and nationally recognized accrediting agencies or associations recognized by the Secretary pursuant to section 496 to— collect any complaints and reports of suspicious activity described in subsection (a)(1) from such agencies, entities, or associations; and route complaints and reports received by the complaint tracking system under this section and complaints and reports collected in accordance with subparagraph
(A)to the Department, the Department of Justice, the Department of Defense, the Department of Veterans Affairs, the Federal Trade Commission Consumer Sentinel Network, the Bureau of Consumer Financial Protection, any equivalent State agency, or the relevant nationally recognized accrediting agency or association. To the extent practicable, all procedures established under this section, and all coordination carried out under paragraph (1), shall be established and carried out in accordance with the complaint tracking systems established under Executive Order 13607 (77 Fed. Reg. 25861; relating to establishing principles of excellence for educational institutions serving servicemembers, veterans, spouses, and other family members). The Secretary shall, on an annual basis, publish on the website of the Department information on the complaints and reports of suspicious activity received for each institution of higher education or loan servicer under this subsection, including— the number of complaints and reports received; the types of complaints and reports received; and where applicable, information about the resolution of the complaints and reports. In carrying out subparagraph (A), the Secretary shall— comply with applicable data privacy laws and regulations; and ensure that personally identifiable information is not shared. Each year, the Secretary shall prepare and submit to Congress a report describing— the types and nature of complaints or reports the Secretary has received under this section; the extent to which complainants are receiving adequate resolution pursuant to this section; whether particular types of complaints or reports are more common in a given sector of institutions of higher education or with particular loan servicers; any legislative recommendations that the Secretary determines are necessary to better assist students and families regarding the activities described in subsection (a)(1); and the institutions of higher education and loan servicers with the highest volume of complaints and reports, as determined by the Secretary. .
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- 77 FR 25861
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Sec. 204
Establishment and maintenance of complaint resolution and tracking system
Fed. Reg.77 FR 25861
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