Establishment and maintenance of complaint resolution and tracking system

(a) Complaint tracking system Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end the following: F Complaint tracking system 161. Complaint tracking system (a) Definitions In this section: (1) Complainant The term complainant means an individual making a complaint, or report of suspicious activity, through the complaint tracking system. (2) Complaint tracking system The term complaint tracking system means the tracking system established under subsection (b). (3) Third-party servicer The term third-party servicer has the meaning given the term in section 481(c). (b) In general The Secretary shall— (1) establish and operate, in coordination with the Student Loan Ombudsman, 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 or reports of suspicious activity regarding— (A) Federal student financial aid and the servicing of postsecondary education loans by loan servicers; (B) educational practices and services of institutions of higher education or third-party servicers; and (C) the recruiting and marketing practices of institutions of higher education or third-party servicers; and (2) ensure that— (A) complaints or reports submitted by students, borrowers of student loans, staff of loan servicers, institutions of higher education, or third-party servicers, or the general public— (i) may remain anonymous if the complainant so chooses, including by providing complainants with an option for the individual complaint to not be reported to the loan servicer, institution, or third-party servicer, as the case may be; and (ii) may describe problems that are systematic in nature and not associated with a particular student or institution; (B) complaints and reports are provided to the loan servicers, institutions of higher education, or third-party servicers that are the subject of such complaints or reports; (C) such loan servicer, institution of higher education, or third-party servicer provides a timely response to the complainant; and (D) the complaint tracking system has the capacity to retrieve, search, and categorize complaints or reports for purposes of identifying problematic trends and systemic practices. (c) Handling of complaints or reports (1) In general 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 timely response to individuals who file a complaint or report of suspicious activity in the complaint tracking system. (2) Timely response to complaints The Secretary shall provide a response to a complainant not more than 90 days after receiving the complaint, or report of suspicious activity, through the system, in writing where appropriate. Each response shall include a description of— (A) the steps that have been taken by the Secretary in response to the complaint or report; (B) any responses received by the Secretary from the loan servicer, institution of higher education, or third-party servicer; and (C) any additional actions that the Secretary has taken, or plans to take, in response to the complaint or report. (3) Timely response to Secretary by institution of higher education or servicer (A) Notice If the Secretary determines that it is necessary, the Secretary shall— (i) notify a loan servicer, institution of higher education, or third-party servicer that is the subject of a complaint, or report of suspicious activity, through the complaint tracking system regarding the complaint or report; and (ii) directly address and resolve the complaint or report in the system. (B) Institution or servicer response Not later than 60 days after receiving a notice under subparagraph (A), a loan servicer, institution of higher education, or third-party servicer shall provide a response to the Secretary concerning the complaint or report, including— (i) the steps that have been taken by the loan servicer, institution, or third-party servicer to respond to the complaint or report; (ii) all responses received by the loan servicer, institution, or third-party servicer from the complainant; and (iii) any additional actions that the loan servicer, institution, or third-party servicer has taken, or plans to take, in response to the complaint or report. (C) Further investigation In the event that a complaint or report received by the complaint tracking system is not adequately resolved or addressed by the responses of the loan servicer, institution of higher education, or third-party servicer under subparagraph (B), the Secretary may— (i) ask additional questions of such loan servicer, institution, or third-party servicer; or (ii) seek additional information from or action by the loan servicer, institution, or third-party servicer. (4) Provision of information (A) In general A loan servicer, institution of higher education, or third-party servicer shall, in a timely manner, comply with a request by the Secretary for information in the control or possession of such loan servicer, institution, or third-party servicer, respectively, concerning a complaint or report of suspicious activity received by the Secretary under the complaint tracking system, including supporting written documentation, subject to subparagraph (B). (B) Exceptions A loan servicer, institution of higher education, or third-party servicer shall not be required to make available under this paragraph— (i) any nonpublic or confidential information, including any confidential commercial information; (ii) any information collected by the loan servicer, institution, or third-party servicer for the purpose of preventing fraud or detecting or making any report regarding other unlawful or potentially unlawful conduct; or (iii) any information required to be kept confidential by any other provision of law. (5) Compliance A loan servicer, institution of higher education, or third party 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. (d) Transparency (1) Data publication The Secretary shall, on an annual basis, publish data on the website of the Department that shall include, for each loan servicer, institution, and third-party servicer— (A) the number of complaints and reports received; (B) the types of complaints and reports received; (C) information about the resolution of the complaints and reports; and (D) if the complainant consents, the narrative content of the complaint or report. (2) Report Each year, the Secretary shall prepare and submit to the authorizing committees a report describing— (A) the types and nature of complaints or reports the Secretary has received under the complaint tracking system; (B) the extent to which complainants are receiving adequate resolution pursuant to this section; (C) whether particular types of complaints or reports are more common in a given sector of institutions of higher education or with particular loan servicers or third-party servicers; (D) any concerning trends or systemic practices identified; (E) any legislative recommendations that the Secretary determines are necessary to better assist students and families regarding the activities described in subsection (c)(1); and (F) the loan servicers, institutions of higher education, and third-party servicers with the highest volume of complaints and reports, as determined by the Secretary.. (b) Program participation agreement requirement Section 487(a) (20 U.S.C. 1094(a)) is amended by adding at the end the following: (32) The institution will comply with any requirement under section 161, or any other requirement by the Department, to provide information or responses with respect to a complaint or report of suspicious activity about the institution..