Bill Overview
Title: Student Loan Accountability Act
Description: 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 that are in effect by final regulation on March 12, 2020, and carried out under the Higher Education Act of 1965.
Sponsors: Rep. DesJarlais, Scott [R-TN-4]
Target Audience
Population: people with federal student loans in the United States
Estimated Size: 42000000
- The bill affects borrowers with federal student loans such as Federal Family Education Loans, Federal Direct Loans, Federal Perkins Loans, and Health Education Assistance Loans.
- As of 2023, there are approximately 43 million individuals with federal student loan debt in the United States.
- The bill does not affect existing targeted forgiveness programs, meaning those eligible under specific conditions like Public Service Loan Forgiveness or Teacher Loan Forgiveness would not be impacted.
Reasoning
- The Student Loan Accountability Act primarily affects individuals holding federal student loans by prohibiting large-scale forgiveness initiatives except where current regulations permit. This will directly impact borrowers expecting or advocating for broader debt relief initiatives, especially those with considerable debt expecting significant relief.
- In crafting the interviews, it is vital to include people who generally represent the population of student loan borrowers – such as recent graduates, long-term borrowers who have been paying loans for decades, and those who are also covered by other existing forgiveness programs.
- Note that the policy does not involve direct fiscal spending or subsidies, as it's a prohibition on actions rather than an active expenditure. This means most predictions involve only psychological and individual financial planning impacts.
- Considering the policy's nature, the 'impact' here pertains primarily to anticipation of relief and planning disruptions rather than direct financial loss.
Simulated Interviews
Elementary School Teacher (Chicago, IL)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I was not expecting to have my loans forgiven outside of PSLF, so this policy does not impact my outlook.
- I think this policy confirms that apart from certain conditions, I'll have to manage this debt on my own.
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 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Software Developer (Dallas, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I was hoping for some type of widespread forgiveness that could help me speed up my debt repayment.
- This policy is disappointing, as it reinforces that no further relief might be coming.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Non-profit Worker (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I'm aware that my forgiveness program is still intact, but it worries me that broader forgiveness won't come.
- I can manage my payments, but a change would have helped my long-term financial goals.
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 | 8 | 8 |
| Year 20 | 8 | 9 |
Small Business Owner (San Francisco, CA)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- The policy makes it clear that I need to adjust my financial plans and focus on repaying my loans as planned.
- It's disappointing, but I was kind of expecting this outcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 9 |
Healthcare Worker (Detroit, MI)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I've already benefitted from loan forgiveness, but I have other loans still.
- I wasn't banking on additional forgiveness given my field's specific programs.
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 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
College Student (Boston, MA)
Age: 22 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- I didn't have high hopes for blanket forgiveness, yet I hoped there might be some relief coming my way.
- Now, it's clear I'll handle these loans through careful budgeting.
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 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 9 |
Engineer (Topeka, KS)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This policy doesn't change anything for me as I didn't expect significant policy changes.
- I can handle the final stretch of my loans without issue.
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 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Freelancer in Media (Los Angeles, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- This policy limits my hope for relief which would have helped me stabilize my financial situation.
- It is discouraging, but it reinforces the importance of managing debts independently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 4 |
| Year 2 | 3 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 5 |
| Year 10 | 5 | 6 |
| Year 20 | 6 | 7 |
Government Employee (Atlanta, GA)
Age: 46 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- The policy doesn't impact me directly as my forgiveness path is secure.
- However, I feel for those who were hoping for broader forgiveness.
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 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Lab Technician (Seattle, WA)
Age: 26 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I kind of counted on some relief considering the discussions around student debt.
- With this policy, it's clear there might not be blanket forgiveness anytime soon.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 9 |
Cost Estimates
Year 1: $0 (Low: $0, High: $10000000)
Year 2: $0 (Low: $0, High: $10000000)
Year 3: $0 (Low: $0, High: $10000000)
Year 5: $0 (Low: $0, High: $10000000)
Year 10: $0 (Low: $0, High: $10000000)
Year 100: $0 (Low: $0, High: $500000000)
Key Considerations
- The bill does not incur new costs but instead prevents expenditures related to broad loan forgiveness.
- Existing loan forgiveness or repayment programs are not impacted, maintaining current budgetary commitments.
- Anticipated savings are contingent upon avoiding large-scale cancellation proposals.