A bill to amend the Higher Education Act of 1965 to provide that the Commissioner of Education be granted authority to contract private collection agencies to collect claims due and owing under the Guaranteed Student Loan Program and related programs.

Authorizes the Commissioner of Education to contract private collection agencies to collect claims due and owing under the guaranteed student loan program and related programs under the Higher Education Act of 1965. States that the Commission shall include in every such contract reasonable conditions to safeguard the student borrower.