Bill Overview
Title: To make technical changes clarifying section 502 of the Federal Credit Reform Act of 1990.
Description: This bill amends the Federal Credit Reform Act of 1990 to modify the definition of direct loan.
Sponsors: Rep. Yarmuth, John A. [D-KY-3]
Target Audience
Population: People and entities involved in or benefiting from federal direct loan programs
Estimated Size: 10000000
- The bill involves changes to the Federal Credit Reform Act of 1990, which deals with federal credit programs and financial management.
- Direct loans are provided by the federal government to individuals, businesses, and potentially other institutions.
- Individuals who access federal direct loans for education, housing, or small business purposes will be impacted.
- Government agencies managing these direct loan programs will be involved in the process due to changes in definitions, affecting their procedures and operations.
Reasoning
- The policy affects direct loan definitions under the Federal Credit Reform Act, which might influence loan accessibility and repayment terms.
- Since the budget is limited, it suggests targeted impact rather than a broad nationwide change.
- We can focus on individuals who directly access federal direct loans for education, housing, or small business as these categories represent high utilization of direct loans.
- Most impacts, given the budget limitations, may be procedural or administrative unless the policy changes tangible benefits or qualifications for loans.
- There may be negligible impact on the large segment of the population not interacting directly with federal loan definitions.
- The budget size and target focus indicate that smaller groups such as students or small business owners may see clearer impact than the general population.
Simulated Interviews
University Student (San Francisco, CA)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I rely on federal loans to help cover my tuition fees and hopefully things get better with this policy.
- It's hard to say if a change in definition will make a significant change for me personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Small Business Owner (Austin, TX)
Age: 35 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- Changes to the direct loan definition could mean more support or flexibility in business loans.
- I'm hopeful but cautious as changes often come with new hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Software Engineer (Miami, FL)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I don't think this will impact me as I'm not using federal loans.
- It sounds like more government procedure changes that won't really affect my day-to-day.
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 |
High School Teacher (Raleigh, NC)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I've dealt with federal housing loans before, so I'm curious if this will change how future loans are handled.
- More clarity on the loan process would be helpful but I'm not sure this policy will address that.
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 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Government Employee (Chicago, IL)
Age: 48 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- Our department might see an increase in paperwork or shifts in how we define terms for applicants.
- Hopefully, the policy brings more clarity and ease, not more hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Self-Employed Artist (Phoenix, AZ)
Age: 31 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Federal housing loans have been crucial for my living situation.
- I hope this policy doesn't complicate the process or make it less accessible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Real Estate Agent (New York, NY)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- As an agent, any policy that impacts loan definitions could influence the market or client interactions.
- I'd like to see more flexibility for clients, which would help my business.
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 | 6 | 7 |
| Year 20 | 6 | 7 |
Retired (Cleveland, OH)
Age: 70 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I don't think changes will affect me at this stage, but I hope it benefits newer borrowers.
- Federal loans were a part of my earlier career, and I know definitions matter.
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 |
Non-profit Manager (Seattle, WA)
Age: 53 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- Our funding is not through loans, so the policy may not be directly relevant.
- However, a broader understanding of federal definitions is always useful.
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 |
Community College Student (Boston, MA)
Age: 19 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Any positive changes in loan conditions could help my education plans.
- I'd support more straightforward or fair definitions in federal loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $8000000)
Year 2: $5000000 (Low: $3000000, High: $8000000)
Year 3: $5000000 (Low: $3000000, High: $8000000)
Year 5: $5000000 (Low: $3000000, High: $8000000)
Year 10: $5000000 (Low: $3000000, High: $8000000)
Year 100: $5000000 (Low: $3000000, High: $8000000)
Key Considerations
- Clarification of definitions may lead to improved data reporting and management efficiency.
- Potential adjustments to compliance and auditing processes at administrative levels.
- Stakeholder consultations might be required to assess implications of definitional changes.