Fairness for Responsible Borrowers Act

Hozzl · 2022-12-29T18:18:44Z

Explore the details of House Bill 8496 Fairness for Responsible Borrowers Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Education. Stay informed on legislative developments.

12/29/2022, 6:18 PM

Summary of Bill HR 8496

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.

Congressional Summary of HR 8496

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.

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Current Status of Bill HR 8496

Bill HR 8496 is currently in the status of Bill Introduced since July 26, 2022. Bill HR 8496 was introduced during Congress 117 and was introduced to the House on July 26, 2022. Bill HR 8496's most recent activity was Referred to the Committee on Education and Labor, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. as of July 26, 2022

Bipartisan Support of Bill HR 8496

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

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Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 8496

Primary Policy Focus

Education

Alternate Title(s) of Bill HR 8496

Fairness for Responsible Borrowers Act

To prohibit the Secretary of Education, the Secretary of the Treasury, and the Attorney General from cancelling student loans except as specifically authorized by law.