Fairness for Responsible Borrowers Act

Fairness for Responsible Borrowers 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.

Bill 117 HR 8496, also known as the Fairness for Responsible Borrowers Act, aims to provide relief for individuals who have demonstrated responsible borrowing behavior. The bill seeks to address the issue of high interest rates and fees that are often imposed on borrowers who have a history of making timely payments and managing their debt responsibly.

Under this legislation, lenders would be required to offer lower interest rates and fees to borrowers who have a proven track record of responsible borrowing. This would help to ensure that individuals who have worked hard to maintain good credit are not unfairly penalized with high costs.

Additionally, the Fairness for Responsible Borrowers Act includes provisions to increase transparency in lending practices and protect consumers from predatory lending practices. Lenders would be required to clearly disclose all terms and conditions of loans, including interest rates, fees, and repayment options. Overall, the goal of Bill 117 HR 8496 is to promote fairness in lending and ensure that responsible borrowers are rewarded for their financial responsibility. By providing relief to individuals who have demonstrated good credit behavior, this legislation aims to create a more equitable lending environment for all consumers.