Federal Accountability and Institutional Reform in Education Act of 1997

[AI summary unavailable — showing source text] Federal Accountability and Institutional Reform in Education Act of 1997 - Amends the Higher Education Act of 1965 (HEA) to revise requirements for student loan cohort default management. Requires guaranty agreements, with regard to due diligence in insured loan collection efforts, to require proof that the institution and the State licensing board were contacted. Requires guaranty agreements to prohibit reimbursement to a guaranty agency upon a default claim unless the agency demonstrates (currently, certifies) diligent attempts, including direct contact with the institution and the State licensing board, have been made. (Sec. 3) Prohibits the Secretary from reimbursing or permitting any eligible lender, servicer, or guaranty agency (or its affiliates) which previously filed a claim for reimbursement on a loan to retain any proceeds from subsequent collection of a defaulted loan to the extent that such funds, when added to the amount of prior reimbursement, exceed 100 percent of the original principal of the loan. Revises provisions relating to notice to the Secretary, payment of loss, notice to institutions of credit bureau information, and cohort default rate. Directs the Secret…