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: Individuals with Federal Family Education Loans, Federal Direct Loans, Federal Perkins Loans, and loans under the Health Education Assistance Loan Program
Estimated Size: 42400000
- As of 2021, more than 42 million Americans have student debt, and most of that debt falls under the categories mentioned in the bill, i.e., Federal Family Education Loans, Federal Direct Loans, and Federal Perkins Loans.
- Globally, other countries do not generally hold significant federal student loan amounts tied to the US specific programs; therefore, the primary population affected would be within the US.
- The bill directly impacts those who have been seeking broader loan forgiveness options through legislative changes beyond what was already in place before March 2020.
Reasoning
- The target population includes a significant portion of the U.S. population with federal student debt. They are primarily individuals between the ages of 25 and 45, given the typical loan repayment timelines and age of borrowers.
- Budgets are specifically noted as zero, which suggests no direct financial interventions are possible with this policy within the planned timeframe. This aligns with a scenario where the policy acts more as a preventive measure against certain federal actions rather than an active financial strategy.
- Responses are likely to be mixed: those who were counting on potential forgiveness may experience a decrease in wellbeing, while those unaffected by possible federal loan forgiveness might see no change.
Simulated Interviews
Marketing Manager (Chicago, IL)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I feel frustrated because I was really hoping for some relief given my public service involvement.
- Without forgiveness, I'm worried about my long-term financial future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 7 |
| Year 20 | 6 | 7 |
Software Developer (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I wasn't expecting forgiveness anyway, so this doesn't affect my plans.
- I handle my loans as a personal responsibility.
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 |
Nurse (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I was relieved to hear that PSLF isn't affected, but I'm still scared about any potential uncertainties.
- The policy's effect on future forgiveness options worries me.
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 | 6 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Barista (Seattle, WA)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- This is a frustrating limitation because I was hoping for broader forgiveness pathways.
- Living with this debt means constantly managing limited income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 7 |
| Year 10 | 5 | 8 |
| Year 20 | 6 | 9 |
Banker (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- I understand why this policy might be necessary, but it doesn't impact me directly.
- I haven't really followed student loan news closely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Teacher (New York, NY)
Age: 35 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- I was expecting some changes that would be more helpful to borrowers.
- Now, I have to rethink my financial plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 6 |
| Year 3 | 4 | 7 |
| Year 5 | 5 | 8 |
| Year 10 | 5 | 8 |
| Year 20 | 6 | 9 |
Graduate Student (Boston, MA)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- The potential absence of forgiveness worries me about my future choices.
- I feel like I'm shouldering a massive burden that won't ease.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 7 |
| Year 20 | 5 | 8 |
Entrepreneur (Los Angeles, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I'm relieved that I finished repaying, but many others still need help.
- Policies like this can discourage entrepreneurship if people are buried in debt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Artist (Portland, OR)
Age: 29 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- Policies that block forgiveness can seem callous and overlook the struggles of many artists.
- I was hoping for some cancellation to help me start saving.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 4 |
| Year 2 | 3 | 5 |
| Year 3 | 3 | 5 |
| Year 5 | 3 | 6 |
| Year 10 | 3 | 7 |
| Year 20 | 4 | 9 |
Retired (Phoenix, AZ)
Age: 54 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- I'm worried about the financial strain on my children.
- The policy seems to shut doors that younger generations were hoping would open.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Cost Estimates
Year 1: $0 (Low: $0, High: $5000000)
Year 2: $0 (Low: $0, High: $5000000)
Year 3: $0 (Low: $0, High: $5000000)
Year 5: $0 (Low: $0, High: $5000000)
Year 10: $0 (Low: $0, High: $5000000)
Year 100: $0 (Low: $0, High: $5000000)
Key Considerations
- Student loan borrowers who expected future loan forgiveness may need to adjust their financial plans.
- This policy may face political and legal challenges, affecting its implementation timeline or permanency.
- Broader economic factors such as interest rates and employment could influence the indirect effects of continued loan repayments.