Federal

Student Loan Accountability Act

Source: Congress.gov · 789 words in original text

What This Bill Does

This bill prohibits three federal officials (the Secretary of Education, Secretary of the Treasury, and Attorney General) from canceling student loans on a large scale. It makes an exception for targeted forgiveness programs that already exist under the Higher Education Act of 1965. The bill also changes tax rules related to student loan forgiveness and restricts how tax information can be used for student loan cancellation programs.

Who It Affects

- The Secretary of Education - The Secretary of the Treasury - The Attorney General - People who have federal student loans - People who have loans under the Health Education Assistance Loan Program - Taxpayers

Key Provisions

- The Secretary of Education, Secretary of the Treasury, and Attorney General cannot cancel or forgive large amounts of outstanding student loan balances, with an exception for targeted forgiveness programs already authorized under the Higher Education Act of 1965. (Sec. 3) - These three officials cannot create new regulations, publish rules, or take actions that modify, cancel, forgive, or delay student loan repayment unless Congress specifically authorized it in existing law. (Sec. 3) - Tax return information cannot be shared or used to administer a student loan cancellation program unless authorized for investigations, prosecutions, or other specified purposes. (Sec. 5) - Section 108(f)(5) of the Internal Revenue Code of 1986 is removed from law. (Sec. 4)

What Changes

If this becomes law, the Secretary of Education, Secretary of the Treasury, and Attorney General lose the ability to cancel student loans through executive action on a mass scale. Existing targeted forgiveness programs under the Higher Education Act remain allowed. Tax agencies cannot use tax return information for unauthorized student loan cancellation programs. Any loan discharges after this bill becomes law follow the new rules.

Important Definitions

"Covered loan" means a loan made, insured, or guaranteed under specific parts of the Higher Education Act of 1965 (parts B, D, or E of title IV) or a loan under the Health Education Assistance Loan Program under the Public Health Service Act.

Effective Date

Not specified in bill text

I 118TH CONGRESS 1ST SESSION H. R. 1622 To prohibit the mass cancellation of student loans. IN THE HOUSE OF REPRESENTATIVES MARCH 17, 2023 Mr. FERGUSON (for himself, Mr. GALLAGHER, Mrs. MILLER of West Virginia, Mr. WENSTRUP, Mr. KUSTOFF, Mr. LAHOOD, and Mr. SMITH of Ne- braska) introduced the following bill; which was referred to the Com- mittee on Ways and Means, and in addition to the Committees on Edu- cation and the Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consider- ation of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit the mass cancellation of student loans. 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 ‘‘Student Loan Account- 4 ability Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 VerDate Sep 11 2014 22:46 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1622.IH H1622 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1622 IH (1) Statutory authority has not been provided 1 to the executive branch of the Federal Government 2 to cancel student loans on a mass scale. 3 (2) It is unfair for taxpayers who paid student 4 loans or did not attend college to pay for those who 5 chose to take student loans. 6 (3) Canceling student loan debt would dis- 7 proportionately assist wealthy borrowers over under- 8 privileged borrowers. 9 SEC. 3. PROHIBITION ON MASS CANCELLATION OF STU- 10 DENT LOANS. 11 (a) PROHIBITION.— 12 (1) IN GENERAL.—Notwithstanding any other 13 provision of law, the Secretary of Education, the 14 Secretary of the Treasury, or the Attorney General 15 shall not take any action to cancel or forgive the 16 outstanding balances, or portion of balances, of cov- 17 ered loans, except as provided in paragraph (2). 18 (2) EXEMPTION.—The prohibition described in 19 paragraph (1) shall not apply to targeted Federal 20 student loan forgiveness, cancellation, or repayment 21 programs carried out under the Higher Education 22 Act of 1965 (20 U.S.C. 1001 et seq.). 23 (b) DEFINITIONS.—In this section, the term ‘‘covered 24 loan’’ means— 25 VerDate Sep 11 2014 22:46 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1622.IH H1622 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1622 IH (1) a loan made, insured, or guaranteed under 1 part B, D, or E of title IV of the Higher Education 2 Act of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.; 3 1087aa et seq.) before, on, or after the date of en- 4 actment of this Act; or 5 (2) a loan under the Health Education Assist- 6 ance Loan Program under title VII of the Public 7 Health Service Act (42 U.S.C. 292 et seq.) made be- 8 fore, on, or after the date of enactment of this Act. 9 (c) LIMITATION.—The Secretary of Education, the 10 Secretary of the Treasury, or the Attorney General may 11 not implement, or publish in any form, any regulation, or 12 take any action, that modifies, alters, amends, cancels, 13 discharges, forgives, or defers the repayment of any stu- 14 dent debt not expressly permitted within statute or regula- 15 tion, regarding covered loans, except to the extent that 16 such regulation or action reflects the clear and unequivocal 17 intent of Congress in legislation. 18 SEC. 4. REPEAL OF CERTAIN STUDENT LOAN FORGIVENESS 19 MODIFICATIONS. 20 (a) IN GENERAL.—Section 108(f) of the Internal 21 Revenue Code of 1986 is amended by striking paragraph 22 (5). 23 VerDate Sep 11 2014 22:46 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1622.IH H1622 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1622 IH (b) EFFECTIVE DATE.—The amendment made by 1 this section shall apply to discharges of loans after the 2 date of the enactment of this Act. 3 SEC. 5. PROHIBITION OF TAX DATA SHARING. 4 (a) IN GENERAL.—Section 6103(l)(13)(D)(ii) of the 5 Internal Revenue Code of 1986 is amended by adding ‘‘or 6 the use of return information for the purpose of admin- 7 istering a student loan cancellation plan unrelated to rea- 8 sons authorized under subparagraphs (A), (B), and (C)’’ 9 after ‘‘investigations or prosecutions’’. 10 (b) EFFECTIVE DATE.—The amendment made by 11 this section shall apply to disclosures made after the date 12 of the enactment of this Act. 13 Æ VerDate Sep 11 2014 22:46 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H1622.IH H1622 kjohnson on DSK79L0C42PROD with BILLS

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