Students and Young Consumers Empowerment Act

Bill Number

H.R. 7671

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-02-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-03-18T17:34:48Z

AI-Generated Summary

Purpose

The Students and Young Consumers Empowerment Act (H.R. 7671) aims to strengthen consumer protections for students and young people in financial matters, particularly student loans. It establishes a dedicated advocate role within the Bureau of Consumer Financial Protection (CFPB) to assist borrowers, promotes coordination between the CFPB and the Department of Education (DOE) to resolve complaints about private and federal student loans, and enhances oversight and education in the student loan market.

Key Provisions

• Establishment of Assistant Director and Student Loan Borrower Advocate (Title I, Sec. 101): Creates this position within the CFPB, appointed by the CFPB Director, to lead an Office for Students and Young Consumers. Duties include entering a memorandum of understanding (MOU) with the DOE for coordination on borrower complaints, accepting and resolving complaints against lenders, servicers, and debt collectors, and conducting market monitoring.
• Reporting Requirements (Title I, Sec. 101): The Advocate must submit annual reports to Congress on student loan complaints, risks in the loan marketplace, campus banking practices (e.g., financial products offered to students), and risks to young consumers. Reports include recommendations to improve protections.
• Office for Students and Young Consumers (Title I, Sec. 101): This new office focuses on educating students, young consumers, and families about financial products and coordinating federal and state consumer protection efforts.
• DOE Duties (Title I, Sec. 102): Requires the DOE to enter an MOU with the CFPB Advocate for complaint coordination and data access.
• Definitions and Cooperation Framework (Title II): Defines key terms like "complaint" (any inquiry or request for help from borrowers), "private education loan," and "nonpublic information." Mandates interagency cooperation, including sharing complaint data within 10 days for certain loans, access to databases, quarterly meetings, and processes for resolving complaints by loan type (e.g., federal vs. private).
• Information Sharing and Privacy (Title II, Sec. 202): Allows secure sharing of consumer complaints, tax return information (with amendments to the Internal Revenue Code), and other data between agencies. Requires MOUs for data privacy, safeguards for confidential information, and ensures loan servicers provide data to the CFPB upon request. Agencies bear their own costs, with rules preserving existing authorities.

Significant Changes to Existing Law

• Replaces the "Private Education Loan Ombudsman" under the Consumer Financial Protection Act of 2010 (Section 1035) with the broader "Assistant Director and Student Loan Borrower Advocate" role, expanding duties to cover both private and federal loans, young consumer protections, and campus banking.
• Adds a new section (Sec. 144) to the Higher Education Act of 1965, requiring the DOE to coordinate with the CFPB via MOU and grant data access.
• Amends the Internal Revenue Code (Section 6103) to allow redisclosure of certain tax information to the CFPB Advocate for oversight.
• Modifies the Privacy Act (5 U.S.C. Section 552a) to permit disclosures between the DOE Secretary and CFPB Advocate without violating privacy rules.
• Expands CFPB authority to gather market data on student financial services but limits it from accessing personally identifiable financial information of consumers.

Potential Impacts

• On Government Agencies: Increases coordination and data sharing between the CFPB and DOE, potentially streamlining operations and reducing duplication in handling complaints. Could lead to more efficient use of resources through shared schedules and quarterly meetings, but requires new safeguards for data privacy and incurs implementation costs borne by each agency.
• On Citizens: Student loan borrowers (especially those with federal Title IV loans or private loans) may experience faster complaint resolution and better access to assistance, reducing burdens from servicers or collectors. Young consumers and students could benefit from enhanced financial education and oversight of campus banking products, potentially lowering risks of unfair practices.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. consumer financial protections and education loans.

Main Stakeholders Affected

• Student Loan Borrowers: Primary beneficiaries, gaining an advocate to handle complaints about loans, servicing, and collections.
• Bureau of Consumer Financial Protection (CFPB): Gains a new leadership position, office, and expanded data access/responsibilities for enforcement and education.
• Department of Education (DOE): Must collaborate more closely with CFPB, share data, and adjust oversight of federal loan programs and servicers.
• Lenders, Servicers, and Debt Collectors: Face increased scrutiny through complaint handling, market monitoring, and required data provision, potentially leading to stricter compliance.
• Institutions of Higher Education: Affected by reviews of campus banking arrangements (e.g., revenue-sharing with financial providers) and products offered to students.
• Congress: Receives regular reports for oversight, with notifications on vacancies or lapsed agreements.
• Young Consumers and Families: Benefit from broader protections and education on financial products.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Enhances interagency cooperation under existing consumer protection laws (e.g., Consumer Financial Protection Act, Higher Education Act) without limiting agency authorities, but introduces specific timelines (e.g., 60 days for MOU) and data-sharing rules that could face challenges if privacy breaches occur. Amendments to tax and privacy laws facilitate information flow but emphasize safeguards to comply with confidentiality standards.
• Constitutional Implications: Supports due process for borrowers by improving access to grievance mechanisms, aligning with equal protection principles for vulnerable groups like students. No direct conflicts with constitutional provisions, as it operates within federal regulatory powers over commerce and education.
• Political Implications: Promotes bipartisan consumer advocacy (introduced by Democrats but referred to multiple committees), potentially influencing future education finance policies. Could spark debates on federal overreach in private lending or data privacy, especially with access to tax information, but neutrally advances transparency in a high-debt area (student loans exceed $1.7 trillion nationally).

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Bonamici, Suzanne [D-OR-1]

Cosponsors (4)

Rep. Lee, Summer L. [D-PA-12], Rep. Bynum, Janelle S. [D-OR-5], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Thanedar, Shri [D-MI-13]

Recent Actions

• 2026-02-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-25: Introduced in House
• 2026-02-25: Introduced in House

Bill Versions

• Students and Young Consumers Empowerment Act — issued 2026-02-25 — PDF (22 pages)