Student Loan Servicers Accountability Act of 2024

The Student Loan Servicers Accountability Act of 2024 requires the Department of Education to rigorously vet student loan servicers before awarding contracts, evaluating factors like past errors, consumer satisfaction, and ability to serve vulnerable borrowers (including language access and disability accommodations). It mandates specific contract terms, including placing loans in interest-free administrative forbearance during servicer errors, refunding overpayments, correcting erroneous credit reports, and providing credit toward loan forgiveness for periods affected by errors. The bill also requires a review of existing contracts and allows contract revocation for misrepresentation, while directing a Comptroller General study on loan transfer errors and their impact on borrowers' credit. This act directly affects the private companies that service federal student loans, impacting millions of borrowers who rely on these services.