Student Loan Accountability Act
12/15/2023, 3:55 PMSummary of Bill HR 1622
The Student Loan Accountability Act, also known as Bill 118 hr 1622, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to hold colleges and universities accountable for the student loan debt that their students accumulate.Under this proposed law, institutions of higher education would be required to share in the financial responsibility of student loan defaults. This means that if a certain percentage of a school's students default on their loans, the school would be responsible for a portion of the outstanding debt.
Additionally, the Student Loan Accountability Act aims to increase transparency in the student loan process. Colleges and universities would be required to provide students with more information about the cost of attendance, graduation rates, and potential earnings after graduation. This is intended to help students make more informed decisions about their education and borrowing. Overall, the Student Loan Accountability Act seeks to address the growing issue of student loan debt in the United States by holding institutions accountable and providing students with more information to make educated decisions about their financial future.
Congressional Summary of HR 1622
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.
