Debt Cancellation Accountability Act of 2022
This bill prohibits the Department of Education from providing class-based loan forgiveness unless funds have been specifically requested and appropriated for this purpose. Class-based loan forgiveness refers to the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on Federal Family Education Loans, Federal Direct Loans, or Federal Perkins Loans (1) on a class-wide basis and for a class of two or more loan borrowers, and (2) that totals more than $1 million.
The prohibition does not apply to targeted loan forgiveness programs established under the Higher Education Act of 1965 and in effect before the enactment of this bill if the loan forgiveness is granted for a single borrower on a case-by-case basis.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8729 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8729
To prevent class-based loan forgiveness for Federal student loans under
title IV of the Higher Education Act of 1965 without the explicit
appropriation of funds by Congress for such purpose.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 19, 2022
Mr. Davidson (for himself, Mr. Clyde, Mr. Tiffany, Mr. Roy, Mr. Weber
of Texas, Mr. Taylor, Mrs. Lesko, Mr. Westerman, Mr. Norman, Mr. Babin,
Mrs. Boebert, Mr. Harris, and Mr. Carey) introduced the following bill;
which was referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To prevent class-based loan forgiveness for Federal student loans under
title IV of the Higher Education Act of 1965 without the explicit
appropriation of funds by Congress for such purpose.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Debt Cancellation Accountability Act
of 2022''.
SEC. 2. PROHIBITION ON CLASS-BASED LOAN FORGIVENESS WITHOUT PROPER
APPROVAL.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by adding at the end the following:
``SEC. 494A. PROHIBITION ON CLASS-BASED LOAN FORGIVENESS WITHOUT PROPER
APPROVAL.
``(a) Definitions.--In this section:
``(1) Class-based loan forgiveness.--
``(A) In general.--The term `class-based loan
forgiveness' means the cancellation, waiver,
assumption, discharge, reduction, or other forgiveness
of any obligation due on covered loans--
``(i) on a class-wide basis and for a class
of 2 or more covered loan borrowers; and
``(ii) that totals more than $1,000,000.
``(B) Exception for existing targeted loan
forgiveness programs.--The term `class-based loan
forgiveness' does not include a targeted program of
loan forgiveness explicitly established under this Act
and in effect on the day before the date of enactment
of the Debt Cancellation Accountability Act of 2022, if
the cancellation, waiver, assumption, discharge,
reduction, or other forgiveness of any obligation due
on a covered loan is--
``(i) granted for a single covered loan
borrower; and
``(ii) based upon an individualized, case-
by-case determination of the covered loan
borrower's--
``(I) eligibility for the targeted
loan forgiveness; and
``(II) satisfaction of all terms
and conditions precedent to receive the
targeted loan forgiveness.
``(2) Covered loan.--The term `covered loan' means a loan
made, insured, or guaranteed under part B, D, or E.
``(b) Limitation on Department Authority.--Notwithstanding any
other provision of this Act or any other law, the Secretary shall have
no authority to provide class-based loan forgiveness unless funds have
been specifically requested and appropriated for the purpose through
the process described in subsection (c).
``(c) Request and Appropriation Process.--
``(1) In general.--The Secretary shall not provide any
class-based loan forgiveness until--
``(A) the Secretary has submitted a request under
paragraph (2); and
``(B) funds have been specifically appropriated for
such request by Congress through an appropriations Act
or other law.
``(2) Request.--In any case where the Secretary determines
class-based loan forgiveness is necessary, the Secretary shall
submit to the authorizing committees, the Committee on
Appropriations of the Senate, and the Committee on
Appropriations of the House of Representatives a written
request that describes--
``(A) the number of covered loan borrowers in the
class and the aggregate amount of the covered student
loan obligations that will be cancelled, waived,
assumed, discharged, reduced, or otherwise forgiven
through the class-based loan forgiveness;
``(B) the particular reason for the class-based
loan forgiveness;
``(C) the legal authority, including the
identification of any authorizing statute or rule, of
the Department to grant such class-based loan
forgiveness; and
``(D) the particular reason the student loan
obligations are being cancelled, waived, assumed,
discharged, reduced, or otherwise forgiven on a
collective basis, rather than through a case-by-case
assessment.
``(3) Resubmission of request.--If funds for a class-based
loan forgiveness request submitted under paragraph (2) are not
specifically appropriated under an appropriations Act or other
law during the fiscal year for which the request is submitted--
``(A) the request shall expire; and
``(B) if the Secretary desires the request to be
reconsidered in a future fiscal year, the Secretary
shall resubmit the request for such fiscal year.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Labor.
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