The "Students and Young Consumers Empowerment Act" aims to strengthen protections for student loan borrowers and young consumers by enhancing coordination between federal agencies. It establishes the position of Assistant Director and Student Loan Borrower Advocate within the Bureau of Consumer Financial Protection (CFPB), who will head the new Office for Students and Young Consumers. This advocate is tasked with accepting and resolving complaints from borrowers regarding both private education loans and Federal student loans, including issues with lenders, servicers, and debt collectors.

A key provision requires the Assistant Director to enter into a memorandum of understanding (MOU) with the Department of Education (DoE) within 60 days of enactment. This MOU will ensure coordinated assistance for borrowers and grant the CFPB access to relevant DoE information systems and data. The Assistant Director will also produce annual reports on the student loan marketplace, campus banking practices, and risks to young consumers, offering recommendations to relevant agencies and Congress.

The bill mandates extensive cooperation between the CFPB and the DoE, requiring them to establish points of contact, share examination schedules, and coordinate oversight activities. They must meet quarterly to discuss complaint trends and resolutions. Furthermore, the legislation facilitates robust information sharing, compelling the DoE to provide the CFPB with access to its databases for various purposes, including research, market analysis, and enforcement.

Both agencies are required to transfer student loan borrower complaints to each other, with specific types of complaints needing transfer within 10 days. The bill also amends the Internal Revenue Code and Title 5 of the U.S. Code to permit necessary information sharing between the agencies. To safeguard sensitive data, the Assistant Director and the Secretary of Education must establish MOUs and maintain strict safeguards for nonpublic information.

Regarding complaint handling, the CFPB's Assistant Director will accept and process complaints related to private education loans and the servicing of Title IV loans. While the Department of Education is primarily responsible for resolving program-related issues for Title IV loans, the CFPB takes the lead on private education loan complaints with federal consumer financial law issues, collaborating with the Department on Title IV loans with such issues. Additionally, any DoE agreement with a contractor for servicing Title IV loans must require the contractor to provide information to the CFPB upon request.