Sec. 3. Return to repayment requirements

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During the period beginning on the date of the enactment of this Act and ending on August 31, 2023, the Secretary of Education shall provide, through 2 or more methods of communication (including postal mail, telephone, and electronic communication), a total of not fewer than 12 notices to each borrower of any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ) indicating— the date on which such borrower is required to make monthly payments on such a loan pursuant to section 271 of the Fiscal Responsibility Act ( Public Law 118–5 ); indicating the borrower’s options for repayment, including that such borrower may be eligible to enroll, or may be automatically enrolled, as applicable, in an income driven repayment assistance plan under section 494A of the Higher Education Act of 1965 (as added by section 5 of this Act), including a brief description of the plan and its associated benefits; and the options available to such a borrower who is in default, including— the option to consolidate or rehabilitate the loans under section 428F(a)(5) (as amended by section 7 of this Act); and a brief description of the benefits and consequences of each option.

During the period described in paragraph (1), and in addition to the notices required under such subsection, the Secretary of Education shall provide the information described in subparagraph

(B)to each at-risk borrower. In carrying out subparagraph (A), the Secretary of Education shall provide, in the manner described in paragraph (1), a total of not fewer than 6 notices to each at-risk borrower indicating— the information described in subparagraphs

(A)through

(C)of paragraph (1); and information specific to such borrower detailing— why such borrower is receiving the notice; and the steps such borrower may take to avoid delinquency and default. Not later than 30 days after the date of the enactment of this Act, the Secretary of Education shall— publish, on a publicly accessible website of the Department, an electronic resource portal; and through the use of such portal— disclose, in an easily searchable format, the date or dates upon which the Secretary carried out the borrower notifications required under paragraphs

(1)and (2); disclose copies of any final contract modifications (as such term is defined in section 2.101 of title 48, Code of Federal Regulations) the Secretary provided to Federal student loan servicers under contract during the period beginning March 1, 2020 and ending September 30, 2024, except that proprietary or confidential information related to such contracts or contract modifications, including source selection information (as such term is defined in section 2.101 of title 48, Code of Federal Regulations) and any information treated as confidential by such a loan servicer and obtained by the Secretary for purposes of such a final contract modification, shall be deemed confidential and exempt from disclosure under this clause and section 552 of title 5, United States Code, relating to freedom of information; provide template examples of the language the Secretary used to carry out the borrower notifications required under paragraphs

(1)and (2); and provide examples of social media posts for public stakeholders who wish to amplify the Secretary’s communications and provide borrowers with accurate information. In this subsection, the term at-risk borrower means a borrower of a loan described in paragraph

(1)that is held by the Secretary of Education who, with respect to any such loan— on or after March 1, 2020, was assigned a new student loan servicer; on or after March 1, 2020, entered repayment for the first time; on or after March 1, 2020, was in default; during the 2-year period preceding March 1, 2020, missed a payment or payments for a period of not less than 60 days; submitted an application for one-time student debt cancellation (as described by the Department of Education in the Federal Register on October 12, 2022 (87 Fed. Reg. 61513 et seq.)); or received a refund from the Department of Education for any payment made during the period beginning on March 1, 2020, and ending on August 31, 2023, that, pursuant to a waiver or modification described by the Department of Education in the Federal Register on October 12, 2022 (87 Fed. Reg. 61513 et seq.), was not required. Section 456 ( 20 U.S.C. 1087f ) is amended by adding at the end the following: Covered activities shall not be subject to any law or other requirement of any State or political subdivision of a State with respect to— disclosure requirements; requirements or restrictions on the content, time, quantity, or frequency of communications with borrowers, endorsers, or references with respect to such loans; or any other requirement relating to the servicing or collection of a loan made under this title. In this subsection, the term covered activities means any of the following activities, as carried out by a qualified entity: Origination of a loan made under this title. Servicing of a loan made under this title. Collection of a loan made under this title. Any other activity related to the activities described in subparagraphs

(A)through (C). . Section 142 ( 20 U.S.C. 1018a ) is amended— by redesignating subsection

(l)as subsection (m); and by inserting after subsection

(k)the following: In notifying a student loan servicer of a final contract modification (as such term is defined in section 2.101 of title 48, Code of Federal Regulations) that instructs such loan servicer to perform a function that is new or different from a function such servicer performs pursuant to an existing contract, the PBO shall, not later than 30 days before such contract change takes effect, provide such servicers with written guidance in the form of— a change order (as such term is defined in section 2.101 of title 48, Code of Federal Regulations); a dear colleague letter; or an electronic announcement. A student loan servicer that is notified of a final contract modification described in paragraph

(1)and receives guidance in a form other than a form described in paragraph

(1)(including through emails or phone calls) shall not be subject to such contract modification. . Section 141 ( 20 U.S.C. 1018 ) is amended— in subsection (c)(4)— in subparagraph (A), by striking and at the end; in subparagraph (B), by striking the period at the end and inserting ; and ; and by adding at the end the following: that the Department has carried out the borrower notifications required under section 3(a) of the FAIR Act. ; by amending subsection (d)(5)(B) to read as follows: In addition, subject to clause (ii), the Chief Operating Officer may receive a bonus in an amount that does not exceed 50 percent of such annual rate of basic pay, based upon the Secretary’s evaluation of the Chief Operating Officer’s performance in relation to the goals set forth in the performance agreement described in paragraph (4). In the case of a year in which the Department does not carry out the activities required under section 3(a) of the FAIR Act or comply with the requirements of sections 142(l) or 456(c), the Chief Operating Officer may not receive a bonus described in clause (i). ; and by amending subsection (e)(3)(B) to read as follows: In addition, subject to clause (ii), a senior manager may receive a bonus in an amount such that the manager’s total annual compensation does not exceed 125 percent of the maximum rate of basic pay for the Senior Executive Service, including any applicable locality-based comparability payment, based upon the Chief Operating Officer’s evaluation of the manager’s performance in relation to the goals set forth in the performance agreement described in paragraph (2). In the case of a year in which the Department does not carry out the activities required under section 3(a) of the FAIR Act or comply with the requirements of sections 142(l) or 456(c), the senior manager may not receive a bonus described in clause (i). .

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