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Federal Student Loan Integrity Act
12/15/2023, 3:53 PM
Summary of Bill HR 380
One key aspect of the bill is the establishment of new requirements for loan servicers who manage federal student loans. These requirements include increased transparency in communication with borrowers, as well as guidelines for handling loan payments and providing accurate information about repayment options.
Additionally, the bill seeks to address concerns about loan forgiveness programs by implementing measures to prevent fraud and abuse. This includes stricter oversight of loan forgiveness applications and ensuring that only eligible borrowers receive forgiveness benefits. Furthermore, the Federal Student Loan Integrity Act aims to improve financial literacy among student loan borrowers by requiring loan servicers to provide educational resources and counseling to help borrowers make informed decisions about their loans. Overall, the bill is designed to protect the interests of student loan borrowers and ensure that federal student loan programs are operating with integrity and accountability. It addresses issues related to loan servicing, forgiveness programs, and financial literacy, with the goal of improving the overall student loan experience for borrowers.
Congressional Summary of HR 380
Federal Student Loan Integrity Act
This bill limits the authority of the Department of Education (ED) to waive or modify statutes and regulations in response to military contingencies or national emergencies, including by prohibiting ED from further using this authority in connection with the COVID-19 national emergency.
Under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003, ED may waive or modify any statutory or regulatory provision applicable to federal student-aid programs as ED deems necessary in connection with a war or other military operation or national emergency. This bill prohibits ED from issuing a waiver or modification that (1) provides for a period that exceeds 30 days during which payments of principal or interest due on federal student loans are suspended or interest does not accrue on such loans, or (2) results in the discharge or cancellation of any outstanding balance owed on federal student loans.
Further, the bill prohibits ED from using this authority to waive or modify any statutory or regulatory provision applicable to federal student-aid programs in connection with the national emergency declared by the President on March 13, 2020, to respond to COVID-19.
