The U.S. Senate on Dec. 1 unanimously approved a bipartisan bill introduced by U.S. Sen. Deb Fischer (R-NE) aimed at identifying and shutting down student debt relief scams.
“Millions of American students rely on loans to advance their education, and they deserve protection from predatory scams,” Sen. Fischer said. “I am pleased that the Senate advanced our bipartisan legislation. It will protect students from debt relief schemes and hold scammers accountable.”
Sen. Fischer in April 2019 signed on as one of the lead original cosponsors of the Stop Student Debt Relief Scams Act of 2019, S. 1153, with bill sponsor U.S. Sen. Tammy Baldwin (D-WI).
Among several provisions, the measure would make it a crime to knowingly use an account number that was issued to another person or was fraudulently obtained to access U.S. Department of Education information technology systems for commercial advantage or private financial gain. A violator would be subject to criminal penalties, including a fine, a prison term of up to five years, or both, according to the congressional record bill summary.
Additionally, the bill would direct the Education Department to create a new form of third-party access, akin to the current “preparer” function on the Free Application for Student Aid (FAFSA) for those applying on behalf of a student and their family, in order to protect legitimate organizations; and to maintain common-sense reporting, detection and prevention activities to stop potential or known debt relief scams, according to a bill summary provided by Sen. Fischer’s office.
The U.S. House of Representatives on Dec. 2 received the Senate-approved S. 1153 for consideration.