Student Loan Accountability Act

Student Loan Accountability Act

This bill generally prohibits the Departments of Education, Justice, or the Treasury from taking any action to cancel or forgive the outstanding balances, or portion of balances, of covered loans. Covered loans refer to Federal Family Education Loans, Federal Direct Loans, Federal Perkins Loans, and loans under the Health Education Assistance Loan Program.

The prohibition does not apply to targeted federal student loan forgiveness, cancellation, or repayment programs carried out under the Higher Education Act of 1965.

Additionally, the bill repeals the temporary tax-free treatment of discharged student loan debt. It also prohibits tax return information from being shared for the purpose of administering a student loan cancellation plan.

Bill 117 HR 8006, also known as the Student Loan Accountability Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to increase transparency and accountability in the student loan industry.

One of the key provisions of the Student Loan Accountability Act is the requirement for loan servicers to provide clear and easily understandable information to borrowers about their loans. This includes details about interest rates, repayment options, and any fees associated with the loan. By ensuring that borrowers have access to this information, the bill aims to help students make more informed decisions about their loans and avoid falling into financial hardship.

Additionally, the bill includes measures to hold loan servicers accountable for any deceptive or unfair practices. This includes penalties for servicers who engage in predatory lending practices or fail to provide accurate information to borrowers. By imposing consequences for these actions, the bill seeks to protect students from being taken advantage of by unscrupulous lenders. Overall, the Student Loan Accountability Act is designed to promote fairness and transparency in the student loan industry. By providing borrowers with clear information and holding loan servicers accountable for their actions, the bill aims to protect students from financial harm and ensure that they are able to repay their loans in a timely manner.