Stop Student Debt Relief Scams Act of 2019

Floor Speech

Mr. Speaker, I rise today in support of S. 1153, the Stop Student Debt Relief Scams Act. I was proud to have introduced the companion bill to this, H.R. 2888, with Representative Stevens.

We cointroduced this bill, and I want to thank the gentlewoman for her leadership on this bill and for her work on this important issue. This is bipartisan, bicameral legislation that will crack down on third-party debt collection scammers who exploit vulnerable students.

Over 40 million Americans today, Mr. Speaker, owe a collective $1.5 trillion in Federal student loan debt. Students are working hard to pay off their loans, but many are struggling to make ends meet. To that end, Congress offers borrowers an array of options to relieve the financial pressure of their debt.

The Department of Education hires Federal student loan servicers to assist borrowers in repaying their loans by helping the borrower select the best option for their specific situation.

These services are all provided at no cost to borrowers. Unfortunately, there are hundreds of malicious third-party debt collection companies that are seizing on students' vulnerability and engaging in predatory schemes by selling students on the notion that their company will reduce or make the student loan debt disappear.

These are scammers who trick borrowers into paying an exorbitant fee for a service that is already available for free through the Federal student loan servicer. Even worse, the victims of the scheme usually become delinquent and enter default because their payments are no longer going to reduce their loan balance but are, instead, lining the pockets of these debt relief scammers.

This bill and the House companion bill would help Federal and State officials take action against these scammers. Specifically, the bill clarifies that it is a Federal crime to access the Department of Education information technology systems for fraud, commercial advantage, or for private financial gain.

The bill also penalizes scammers with a fine of up to $20,000, imprisonment of up to a 5-year sentence, or some combination of both. These measures ensure that there are strong deterrents set in place to prevent widespread abuse from debt scammers.

Our bill also improves student loan exit counseling by warning Federal loan borrowers about debt relief scams and informing them that these third-party companies charge money for services that are already provided to borrowers for free by the Department of Education.

Creating awareness will significantly aid students' ability to spot a scam. Importantly, this legislation requires the Department of Education to maintain commonsense reporting, detection, and prevention activities to stop potential or known debt relief scams.

Student loan borrowers face many obstacles in our generous yet complicated student loan system. Congress must see to it that the malicious actors who seek to con students and line their own pockets are stopped.

Mr. Speaker, the Stop Student Debt Relief Scams Act is bipartisan legislation that holds third-party debt collection scammers accountable for their predatory schemes to line their pockets at the expense of hardworking families.

At a time when Americans are feeling the financial impact of the coronavirus pandemic, this legislation is even more important and is a commonsense measure to prevent borrowers from falling victim to these scams.

Today's legislation will help strengthen the tools Federal and State officials need to combat these bad actors while also educating student loan borrowers.

Mr. Speaker, I strongly urge my colleagues to vote ``yes'' on this bill, and I yield back the balance of my time.

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