Bill Overview
Title: Accountability in Student Loan Data Act of 2022
Description: of 2022 This bill revises the method for calculating a cohort default rate (the measurement of how many borrowers default on their federal student loans within a certain time period), and it establishes penalties for institutions of higher education that have a certain percentage of graduates who default on their student loans.
Sponsors: Rep. Porter, Katie [D-CA-45]
Target Audience
Population: People with federal student loans in the United States
Estimated Size: 43000000
- The bill focuses on federal student loans, so it primarily affects individuals who have taken such loans, which are most common in the United States.
- In the U.S., approximately 43 million borrowers have federal student loan debt.
- Institutional accountability is important in regions with high numbers of borrowers, such as the United States, due to its extensive federal student loan system.
- Borrowers in foreign countries are generally not involved as they are not part of the U.S. federal student loan system.
Reasoning
- The target population for this policy is individuals with federal student loans in the United States, a group estimated at 43 million people. Given the budget constraints, it is important to consider how different segments of this population will be affected, including current students, recent graduates, and those who have been in repayment for longer periods.
- The policy is expected to change institutional behavior by potentially penalizing colleges with high default rates, likely improving the counseling and support systems they provide before and after graduation.
- The policy's direct impact on individual borrowers may vary depending on their default risk, which can be influenced by their field of study, employment status, and income level.
- We should include perspectives from individuals not significantly impacted by the policy to understand its overall distribution effect.
Simulated Interviews
Recent college graduate (New York, NY)
Age: 24 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I think this policy could benefit future students by holding colleges accountable, but it doesn't do much for me directly.
- Since I just graduated, the debt is overwhelming, and more immediate relief would be helpful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Software Engineer (Los Angeles, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is well-intentioned, but I doubt it will affect me directly as I've almost paid off my loans.
- Any policy that improves transparency and accountability is good for students.
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 | 9 | 9 |
| Year 20 | 9 | 9 |
College professor (Columbus, OH)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- As someone in academia, I can see this policy creating pressure on schools to better support students, which is positive.
- My loans are manageable due to my position, so I won't be significantly impacted.
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 | 8 | 8 |
| Year 20 | 8 | 8 |
Unemployed (Chicago, IL)
Age: 28 | Gender: other
Wellbeing Before Policy: 3
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I hope this policy pressures schools into offering more career support, because I'm really struggling.
- Defaulting on my loans feels inevitable at this point without any help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 3 |
| Year 3 | 5 | 3 |
| Year 5 | 6 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
Retired (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This policy might be useful for my daughter if her institution improves its programs and resources.
- As a parent paying loans, I think more direct relief would be better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Current college student (Austin, TX)
Age: 22 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- If this means better career support and resources by the time I graduate, then I'm all for it.
- I'm concerned about debt but feel a bit more optimistic with this policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Freelance Writer (Seattle, WA)
Age: 27 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I think any policy that informs future students better is good, but it's not changing my immediate situation.
- Freelancing is tough with loans, and I need more concrete financial support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
High school teacher (Houston, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- This policy seems important but doesn't affect me personally as I've finished paying off my loans.
- I'm supportive of measures that help younger generations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Entrepreneur (Denver, CO)
Age: 34 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- I think increasing accountability is essential to prevent future borrowers from facing hardship.
- This will not impact me much, as my business is doing well.
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 | 8 | 8 |
| Year 20 | 8 | 8 |
Healthcare worker (Portland, OR)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- I see potential in this policy if it means my alma mater will support students better, but it's not an immediate relief for me.
- Healthcare workers like me, even with a stable job, still feel the loan burden.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $25000000 (Low: $20000000, High: $30000000)
Year 2: $20000000 (Low: $15000000, High: $25000000)
Year 3: $20000000 (Low: $15000000, High: $25000000)
Year 5: $15000000 (Low: $10000000, High: $20000000)
Year 10: $10000000 (Low: $5000000, High: $15000000)
Year 100: $5000000 (Low: $1000000, High: $10000000)
Key Considerations
- Potential systemic shifts in reporting and calculating cohort default rates necessitated by this bill might require time and resources to implement effectively.
- There could be varied responses from different educational institutions based on their current default rates and financial health.
- Long-term societal and economic benefits are contingent upon successfully reducing default rates without affecting access to education.