What This Bill Does
This bill changes rules about federal student loan relief during national emergencies. It limits the Secretary of Education's power to pause student loan payments or cancel student debt without Congress involvement.
Who It Affects
The Secretary of Education, the President, federal student loan borrowers, people who received student loan payment pauses or cancellations, and Congress.
Key Provisions
• The Secretary of Education can only suspend or pause federal student loan payments for 90 days after a national emergency is declared, and cannot use this power in back-to-back 90-day periods (Sec. 4(a)).
• The President and Secretary of Education cannot pause payments or cancel student loans for borrowers whose yearly household income is above 400 percent of the poverty line (Sec. 4(c)(1)).
• The President and Secretary of Education are prohibited from canceling student loan balances due to any national emergency, including COVID-19 (Sec. 4(d)(1)).
• Any student loan payment pause or cancellation done through executive action must follow the Congressional Review Act, which allows Congress to vote to disapprove the action (Sec. 4(c)(2) and 4(d)(2)).
• The Secretary of Education must submit a report to Congress within 60 days of a national emergency declaration that includes recommendations for student financial assistance relief (Sec. 4(b)).
What Changes
If this bill becomes law, any current suspension of federal student loan payments due to COVID-19 must end 30 days after the law is enacted. The President and Secretary of Education would lose the ability to pause student loan payments beyond 90 days after a national emergency is declared. They would be completely prohibited from canceling student loan debt. Any future attempts to pause payments or cancel loans would require Congress approval.
Important Definitions
"Covered loan" means federal student loans made, insured or guaranteed under specific parts of the Higher Education Act of 1965 or loans under the Health Education Assistance Loan Program (Sec. 4(f)).
Effective Date
30 days after the bill becomes law (Sec. 5).
II
118TH CONGRESS
1ST SESSION
S. 506
To amend the Higher Education Relief Opportunities for Students Act of
2003 to strike the Secretary’s unilateral authority during a national
emergency, and for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 16, 2023
Mr. THUNE (for himself, Mr. CASSIDY, Mr. BARRASSO, Mrs. BRITT, Mr.
CRAMER, Ms. ERNST, Mr. GRASSLEY, Mr. MARSHALL, Mr. SCOTT of
Florida, and Mr. SCOTT of South Carolina) introduced the following bill;
which was read twice and referred to the Committee on Health, Edu-
cation, Labor, and Pensions
A BILL
To amend the Higher Education Relief Opportunities for
Students Act of 2003 to strike the Secretary’s unilateral
authority during a national emergency, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Stop Reckless Student
4
Loan Actions Act of 2023’’.
5
SEC. 2. FINDINGS.
6
Congress finds the following:
7
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(1) The Higher Education Relief Opportunities
1
for Students Act of 2003 (20 U.S.C. 1098aa et seq.)
2
was intended to provide relief opportunities for
3
members of the armed services.
4
(2) The authority provided under the Higher
5
Education Relief Opportunities for Students Act of
6
2003 has been abused by the executive branch dur-
7
ing the COVID–19 national emergency regarding
8
the payment of Federal student loans.
9
(3) The unilateral payment pause on Federal
10
student loans has cost more than $160,000,000,000.
11
(4) The unilateral payment pause on Federal
12
student loans has inflationary impacts.
13
(5) The individuals benefitting the most from
14
the payment pause continued by the executive
15
branch are doctors, who receive 11 times the benefit
16
of bachelor’s degree recipients and 16 times the ben-
17
efit of associate’s degree recipients.
18
SEC. 3. AMENDMENTS TO THE HIGHER EDUCATION RELIEF
19
OPPORTUNITIES FOR STUDENTS ACT OF 2003.
20
Section 5(2) of the Higher Education Relief Opportu-
21
nities for Students Act of 2003 (20 U.S.C. 1098ee) is
22
amended—
23
(1) in the matter preceding subparagraph (A),
24
by inserting ‘‘(or the spouse or dependent of the
25
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•S 506 IS
parent, as that term is used in section 480 of the
1
Higher Education Act of 1965 (20 U.S.C. 1087vv))’’
2
after ‘‘an individual’’;
3
(2) in subparagraph (A), by inserting ‘‘and’’
4
after the semicolon;
5
(3) in subparagraph (B), by striking the semi-
6
colon and inserting a period; and
7
(4) by striking subparagraphs (C) and (D).
8
SEC. 4. HIGHER EDUCATION RELIEF OPPORTUNITIES FOR
9
CIVILIANS IN THE CASE OF A NATIONAL
10
EMERGENCY AND LIMITATIONS ON COVERED
11
LOANS.
12
(a) TEMPORARY AUTHORITY
FOR HIGHER EDU-
13
CATION RELIEF.—
14
(1) IN
GENERAL.—Subject to the limitation
15
provided in subsection (c), during the 90 day period
16
after a declaration of a national emergency under
17
section 201 of the National Emergencies Act (50
18
U.S.C. 1621), the Secretary of Education may sus-
19
pend or defer Federal student loan payments or the
20
accrual of interest for loans made, insured or guar-
21
anteed under part B, D, or E of title IV of the
22
Higher Education Act of 1965 (20 U.S.C. 1071 et
23
seq.; 1087a et seq.; 1087aa et seq.) or loans under
24
the Health Education Assistance Loan Program.
25
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(2) LIMITATION.—The Secretary of Education
1
may not use the temporary authority provided under
2
paragraph (1) in consecutive 90 day periods.
3
(b) RECOMMENDATIONS FOR HIGHER EDUCATION
4
RELIEF FROM THE SECRETARY OF EDUCATION.—In the
5
case of a national emergency declared by the President
6
under section 201 of the National Emergencies Act (50
7
U.S.C. 1621), the Secretary of Education shall submit to
8
the Committee on Health, Education, Labor, and Pen-
9
sions of the Senate and the Committee on Education and
10
the Workforce of the House of Representatives, not later
11
than 60 days after the date of such declaration, a report
12
that includes any recommendations on relief necessary for
13
recipients of student financial assistance under title IV of
14
the Higher Education Act of 1965 (20 U.S.C. 1070 et
15
seq.).
16
(c) LIMITS ON EXECUTIVE AUTHORITY TO SUSPEND
17
OR DEFER FEDERAL STUDENT LOAN PAYMENTS OR IN-
18
TEREST.—
19
(1) IN GENERAL.—Notwithstanding any other
20
provision of law, the President or the Secretary of
21
Education may not suspend or defer Federal student
22
loan payments on covered loans or the accrual of in-
23
terest on covered loans of borrowers with annual
24
household incomes over 400 percent of the poverty
25
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•S 506 IS
line (as determined under the poverty guidelines up-
1
dated periodically in the Federal Register by the De-
2
partment of Health and Human Services under the
3
authority of section 673(2) of the Community Serv-
4
ices Block Grant Act (42 U.S.C. 9902(2))).
5
(2) APPLICATION OF CONGRESSIONAL REVIEW
6
ACT.—In any case where the President or the Sec-
7
retary of Education suspends or defers Federal stu-
8
dent loan payments on covered loans or the accrual
9
of interest on covered loans through any type of ex-
10
ecutive or regulatory action, the suspension or defer-
11
ral shall be—
12
(A) deemed to be a major rule for purposes
13
of chapter 8 of title 5, United States Code
14
(commonly known as the ‘‘Congressional Review
15
Act’’); and
16
(B) subject to congressional disapproval in
17
accordance with such chapter.
18
(d) LIMITS ON EXECUTIVE AUTHORITY TO CANCEL
19
STUDENT LOANS.—
20
(1) IN GENERAL.—Notwithstanding any other
21
provisions of law, the President or the Secretary of
22
Education may not cancel the outstanding balances,
23
or a portion of the balances, on covered loans due
24
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to the COVID–19 national emergency or any other
1
national emergency.
2
(2) APPLICATION OF CONGRESSIONAL REVIEW
3
ACT.—In any case where the President or the Sec-
4
retary of Education cancels the outstanding bal-
5
ances, or portion of the balances, on covered loans
6
through any type of executive or regulatory action,
7
the cancellation shall be—
8
(A) deemed to be a major rule for purposes
9
of chapter 8 of title 5, United States Code
10
(commonly known as the ‘‘Congressional Review
11
Act’’); and
12
(B) subject to congressional disapproval in
13
accordance with such chapter.
14
(e) IMPLEMENTATION.—
15
(1) REGARDING SUSPENSIONS OR DEFERMENTS
16
OF FEDERAL STUDENT LOAN PAYMENTS ONGOING
17
AT THE TIME OF ENACTMENT.—Not later than the
18
effective date of this Act, any suspension or
19
deferment of Federal student loan payments on cov-
20
ered loans due to the COVID–19 national emergency
21
shall terminate. Notwithstanding any other provision
22
of law, a subsequent suspension or deferment of
23
Federal student loan payments on covered loans for
24
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•S 506 IS
the COVID–19 national emergency shall be prohib-
1
ited.
2
(2) REGARDING
CANCELLATION
OF
STUDENT
3
LOANS PRIOR TO EFFECTIVE DATE.—Any cancella-
4
tion of the outstanding balance, or portion of a bal-
5
ance, on a covered loan made by the President or
6
Secretary of Education through any type of execu-
7
tive or regulatory action in the 30 days before the
8
effective date of this Act shall be—
9
(A) deemed to be a major rule for purposes
10
of chapter 8 of title 5, United States Code
11
(commonly known as the ‘‘Congressional Review
12
Act’’); and
13
(B) subject to congressional disapproval in
14
accordance with such chapter.
15
(f) DEFINITION OF COVERED LOAN.—In this sub-
16
section, the term ‘‘covered loan’’ means a loan made, in-
17
sured, or guaranteed under part B, D, or E of title IV
18
of the Higher Education Act of 1965 (20 U.S.C. 1071
19
et seq.; 1087a et seq.; 1087aa et seq.) or a loan under
20
the Health Education Assistance Loan Program.
21
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•S 506 IS
SEC. 5. EFFECTIVE DATE.
1
This Act, and the amendments made by this Act,
2
shall take effect on the date that is 30 days after the date
3
of enactment of this Act.
4
Æ
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