Sponsors (5)
Introduced February 25, 2026 by Suzanne Bonamici · Last progress February 25, 2026
The bill gives students and young borrowers stronger advocacy, faster complaint handling, and increased oversight through a new CFPB office and interagency data-sharing, but it raises meaningful privacy risks and compliance costs that may be borne by providers, students, agencies, and taxpayers.
Students and young consumers will have a dedicated Advocate and a new Office for Students and Young Consumers at the CFPB that coordinates federal/state efforts and provides education and outreach to students, families, and young adults.
Student loan borrowers will get faster handling of complaints because CFPB and the Department of Education must route certain complaints between agencies and process transferred complaints within a short timeframe, improving responsiveness and resolution for borrowers.
Borrowers and students may receive stronger oversight and enforcement against abusive servicers, private lenders, and contractors because the CFPB gains authority to obtain information, require reports from covered persons, and (with limited access rules) use Department of Education data to investigate private loan and Title IV servicing complaints.
Students, borrowers, and taxpayers face increased privacy and security risks because expanded data access and sharing between the CFPB, Department of Education, and contractors could expose sensitive borrower and taxpayer information despite formal safeguards.
Servicers, lenders, campus banking partners, and contractors will face greater reporting and compliance obligations that increase their administrative costs, and those higher costs could be passed through to students and borrowers via fees or pricing.
New mandates (MOUs, annual reports, vacancy notices, data-sharing arrangements) create administrative burdens for the Department of Education and CFPB, potentially diverting staff time from other borrower services and increasing government operating costs.
Based on analysis of 4 sections of legislative text.
Creates a CFPB Student Loan Borrower Advocate and Office, mandates CFPB–DOE MOUs and data‑sharing, and expands joint oversight and reporting on student financial services.
Creates a new Assistant Director position at the Consumer Financial Protection Bureau (CFPB) who will serve as the Student Loan Borrower Advocate, and establishes an Office for Students and Young Consumers. It expands CFPB authority to collect and coordinate information on student financial services, requires formal data‑sharing and coordination with the Department of Education (DOE) via memoranda of understanding (MOUs) within 60 days, and mandates regular reporting to Congress on student loan marketplace risks, campus banking, and borrower complaints while protecting consumers’ personally identifiable financial information. Requires ongoing CFPB–DOE coordination on supervision and oversight of student financial services (including Title IV loans), sets duties for sharing examination/review schedules and complaint data, directs quarterly meetings and points of contact, and clarifies definitions and confidentiality rules for nonpublic information exchanged between agencies and covered providers.