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 that are in effect by final regulation on March 12, 2020, and carried out under the Higher Education Act of 1965.

Bill 117 HR 8102, also known as the Student Loan Accountability Act, is a piece of legislation introduced in the US Congress aimed at addressing issues related to student loans. The bill seeks to increase transparency and accountability in the student loan industry to better protect borrowers.

One key provision of the bill is the requirement for loan servicers to provide clear and easily understandable information to borrowers about their loans, including interest rates, repayment options, and potential consequences of default. This is intended to help borrowers make more informed decisions about their loans and avoid falling into financial hardship.

Additionally, the Student Loan Accountability Act includes measures to hold loan servicers accountable for any deceptive or unfair practices. The bill establishes penalties for servicers who engage in predatory lending practices or fail to properly assist borrowers in navigating the loan repayment process. Furthermore, the bill aims to streamline the loan forgiveness process for borrowers who qualify for programs such as Public Service Loan Forgiveness or income-driven repayment plans. This is intended to make it easier for borrowers to access the relief they are entitled to and avoid unnecessary obstacles in the forgiveness process. Overall, the Student Loan Accountability Act is designed to protect student loan borrowers from predatory practices, improve transparency in the industry, and make it easier for borrowers to navigate the loan repayment process. The bill is currently under consideration in Congress and has garnered bipartisan support for its efforts to address the challenges faced by student loan borrowers.