Bill Overview
Title: Debt Cancellation Accountability Act of 2022
Description: This bill prohibits the Department of Education from providing class-based loan forgiveness unless funds have been specifically requested and appropriated for this purpose. Class-based loan forgiveness refers to the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on Federal Family Education Loans, Federal Direct Loans, or Federal Perkins Loans (1) on a class-wide basis and for a class of two or more loan borrowers, and (2) that totals more than $1 million. The prohibition does not apply to targeted loan forgiveness programs established under the Higher Education Act of 1965 and in effect before the enactment of this bill if the loan forgiveness is granted for a single borrower on a case-by-case basis.
Sponsors: Rep. Davidson, Warren [R-OH-8]
Target Audience
Population: Federal student loan borrowers
Estimated Size: 43000000
- The bill targets federal student loan borrowers.
- Class-based loan forgiveness programs typically affect a significant number of borrowers.
- Approximately 43 million people in the United States have federal student loan debt according to U.S. Department of Education reports as of 2021.
- The bill affects borrowers across major federal loan categories: Federal Family Education Loans, Federal Direct Loans, and Federal Perkins Loans.
Reasoning
- We must simulate a range of individuals to reflect diversity in the impacted population.
- Most interviewees should have federal student loans since the policy directly affects this group.
- Incorporate the perspectives of those who might not be directly affected due to their loan status.
- Consider different ages, career stages, and geographic locations to provide a more comprehensive view.
- Consider those with varying loan amounts and the impact of potential forgiveness on their mental wellbeing.
Simulated Interviews
Software Engineer (Los Angeles, CA)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I am concerned about my student debt as it makes it difficult to save for a house or pursue further education.
- The possibility of loan forgiveness was a relief, but now it seems less likely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 3 | 7 |
| Year 10 | 3 | 8 |
| Year 20 | 4 | 9 |
Teacher (Austin, TX)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I was counting on class-based forgiveness for my teaching position, now I'm unsure if I'll qualify.
- The act seems like it might indirectly affect my loan situation down the line.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 4 | 6 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 8 | 9 |
Small Business Owner (Chicago, IL)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I feel less worried personally, but I do wonder how these restrictions will affect broader loan relief opportunities.
- Luckily, I have managed my loans so far.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
College Student (New York, NY)
Age: 22 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- This comes at a time when I was desperately hoping for loan forgiveness to start my career without this weight.
- The policy seems to close off one of few options for manageable debt resolution.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 4 |
| Year 2 | 3 | 5 |
| Year 3 | 2 | 6 |
| Year 5 | 2 | 6 |
| Year 10 | 3 | 7 |
| Year 20 | 4 | 9 |
Retired (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- I'm worried about my grandchild more than myself and how this student debt will impact their life.
- The removal of large-scale forgiveness worries me since it could limit their life choices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 7 |
| Year 10 | 5 | 8 |
| Year 20 | 6 | 9 |
Nurse (Seattle, WA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I had hoped larger forgiveness plans would apply, but I am thankful that some forgiveness programs remain.
- The uncertainty makes financial planning more stressful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 9 |
| Year 20 | 7 | 9 |
Construction Worker (Atlanta, GA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- My children's education is costing us more than anticipated and any forgiveness could free up their future.
- Personally, I'm less affected but concerned for family.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Part-time worker, Student (Boston, MA)
Age: 19 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- The possibility of facing high debt without broad forgiveness programs is frightening.
- Any help feels like it'd make a difference at this stage for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 3 | 6 |
| Year 5 | 4 | 7 |
| Year 10 | 5 | 8 |
| Year 20 | 6 | 9 |
Graphic Designer (Denver, CO)
Age: 27 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I'm managing payments now, but forgiveness would open up new financial options like buying a home.
- It's unsettling that options are now more limited.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 9 |
| Year 20 | 7 | 9 |
Freelance Writer (Phoenix, AZ)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 7/20
Statement of Opinion:
- It's disheartening to see fewer options for significant loan forgiveness.
- Hard to plan longer-term goals with these debts looming.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 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
- This act enforces existing repayment responsibilities.
- Federal student loans affect a large demographic with over 43 million borrowers.
- Long-term accountability in budget appropriations.
- Indirect savings by averting non-allocated loan forgiveness could be substantial.