Bill Overview
Title: Federal Student Loan Integrity Act
Description: 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 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.
Sponsors: Rep. Good, Bob [R-VA-5]
Target Audience
Population: Individuals with federal student loans
Estimated Size: 43000000
- The bill specifically addresses the limitations on waivers or modifications for federal student loans during national emergencies.
- There are approximately 43 million federal student loan borrowers in the United States.
- The HEROES Act of 2003 applies to U.S. citizens; hence, the impact is limited to federal loans held by U.S. based individuals.
- Individuals who might have benefitted from extended suspension of federal loan payments or interest accrual due to the COVID-19 Emergency Declaration will be directly affected.
- Individuals expecting loan cancellation or discharge through emergency provisions will also be impacted.
Reasoning
- The target population of approximately 43 million individuals with federal student loans is relatively large compared to the budget, which means the potential individual impact is limited in terms of direct financial aid due to the constraints in budget.
- Only those individuals who were benefitting from the modified terms due to the national emergencies will see a direct change in their circumstances.
- Many affected may not have planned for an abrupt return to standard repayment schedules after an elongated period of emergency relief, which could impact their financial wellbeing.
- The spread across the nation will be extensive but disproportionate, especially affecting younger demographics, recent graduates, and individuals from vulnerable economic backgrounds.
Simulated Interviews
Graduate student (Austin, TX)
Age: 24 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I think it's unfair to suddenly make changes when many of us planned financially around these temporary relief measures.
- It feels like adding stress on top of an already challenging environment for students.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 9 |
Public School Teacher (New York, NY)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- I'm grateful for the relief I received during the pandemic, but moving forward, I'll need to budget more carefully without these additional supports.
- It's going to be a squeeze financially to manage without the waiver support I was counting on.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Software Developer (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- I understand the need to return to normalcy, but the relief was a significant financial cushion. Returning to previous payments will reduce my savings potential significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Freelance Graphic Designer (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- The emergency relief was crucial for me to start my own business, and taking it away so soon presents a real challenge.
- I might need to find additional work to manage the loan repayments now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Healthcare Worker (Atlanta, GA)
Age: 35 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- I feel grateful for the pause that helped me manage financial stress, but it's a relief to have my loans paid off anyway.
- For others still repaying, I can see how returning to full payments could be difficult.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 10 | 10 |
| Year 20 | 10 | 10 |
Engineer (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 12/20
Statement of Opinion:
- Having my children take on debt more aggressively because of these decisions is a concern for the future.
- I had hoped the government would have extended support longer after COVID.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Substitute Teacher (Denver, CO)
Age: 37 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I’m overwhelmed at the prospect of increased financial strain now that previous supports are removed.
- It's like taking away a critical lifeline too soon.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 4 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Startup Founder (Miami, FL)
Age: 27 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- COVID relief enabled me to allocate funds towards my startup; without it, I must reconsider my business strategy and possibly take a side job.
- I hoped for a more phased approach back to normalcy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Retail Worker (Boston, MA)
Age: 23 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 11/20
Statement of Opinion:
- Managing regular loan payments on a retail salary is daunting.
- The relief measures were a temporary hope that now feels dashed. I wasn't prepared financially for such a quick turnaround.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Mechanic (Minneapolis, MN)
Age: 45 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 13/20
Statement of Opinion:
- I'm close to paying off my loans, so the changes aren't drastic for me.
- For many, though, this reversal might feel like a step back when they had planned based on ongoing relief benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $5000000000 (Low: $3000000000, High: $7000000000)
Year 2: $5200000000 (Low: $3200000000, High: $7200000000)
Year 3: $5410000000 (Low: $3400000000, High: $7400000000)
Year 5: $5650000000 (Low: $3600000000, High: $7600000000)
Year 10: $6000000000 (Low: $3800000000, High: $8000000000)
Year 100: $30000000000 (Low: $25000000000, High: $35000000000)
Key Considerations
- The challenge of balancing immediate borrower relief during emergencies with long-term federal financial stability.
- Likely reconsideration of loan management and borrower communication strategies.
- Implications for federal budgeting and emergency response frameworks.