STUDY OF FRAUD-BASED DEFENSES.

SEC. 1403. STUDY OF FRAUD-BASED DEFENSES. (a) Study.— The Secretary shall conduct a study of the impact of fraud-based defenses on the Federal Family Education Loan Program. Such study shall include— (1) an analysis of statutory, regulatory, and case law regarding the use of fraud-based defenses against repayment of such loans; (2) an estimate of the total number of borrowers filing for relief from repayment of such loans using a fraud-based defense and amount of such loan principal involved; (3) an estimate of such loan principal relieved annually through fraud-based defenses; (4) an evaluation of the importance of a fraud-based defense to the protection of borrowers of such loans; and (5) an evaluation of the effects of the availability of a fraud based defense on the accessibility of Stafford loans by geographical area and by type of postsecondary institution. (b) Date.— The study described in subsection (a) shall be completed not later than 18 months after the date of enactment of this Act. (c) Report.— (1) In general.— The Secretary shall submit a report to the Congress on the study described in subsection (a) that makes specific recommendations for legislative options that may be needed to address the rights of borrowers with respect to the availability of fraud-based defenses under the Federal Family Education Loan Program without jeopardizing the participation of lenders or the solvency of guaranty agencies required to maintain the integrity of such program. (2) Date.— The report described in paragraph (1) shall be completed not later than 19 months after the date of enactment of this Act.