118 HR 509 IH: Debt Cancellation Accountability Act of 2023 U.S. House of Representatives 2023-01-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 509IN THE HOUSE OF REPRESENTATIVESJanuary 25, 2023Mr. Davidson (for himself, Mr. Biggs, Mr. Donalds, Mr. Roy, Mr. Bishop of North Carolina, Mrs. Lesko, Mr. Guest, Mr. Carey, Mr. Norman, Mr. Weber of Texas, Mr. Tiffany, and Mr. Balderson) introduced the following bill; which was referred to the Committee on Education and the WorkforceA BILLTo prevent class-based loan forgiveness for Federal student loans under title IV of the Higher Education Act of 1965 without the explicit appropriation of funds by Congress for such purpose.

1.

Short title

This Act may be cited as the Debt Cancellation Accountability Act of 2023.

2.

Prohibition on class-based loan forgiveness without proper approval

Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

494A.

Prohibition on class-based loan forgiveness without proper approval

(a)

Definitions

In this section:(1)

Class-based loan forgiveness

(A)

In general

The term class-based loan forgiveness means the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on covered loans—(i)on a class-wide basis and for a class of 2 or more covered loan borrowers; and(ii)that totals more than $1,000,000. (B)

Exception for existing targeted loan forgiveness programs

The term class-based loan forgiveness does not include a targeted program of loan forgiveness explicitly established under this Act and in effect before January 1, 2022, if the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on a covered loan is—(i)granted for a single covered loan borrower; and(ii)based upon an individualized, case-by-case determination of the covered loan borrower’s—(I)eligibility for the targeted loan forgiveness; and(II)satisfaction of all terms and conditions precedent to receive the targeted loan forgiveness. (2)

Covered loan

The term covered loan means a loan made, insured, or guaranteed under part B, D, or E.(b)

Limitation on Department authority

Notwithstanding any other provision of this Act or any other law, the Secretary shall have no authority to provide class-based loan forgiveness unless funds have been specifically requested and appropriated for the purpose through the process described in subsection (c).(c)

Request and appropriation process

(1)

In general

The Secretary shall not provide any class-based loan forgiveness until—(A)the Secretary has submitted a request under paragraph (2); and (B)funds have been specifically appropriated for such request by Congress through an appropriations Act or other law.(2)

Request

In any case where the Secretary determines class-based loan forgiveness is necessary, the Secretary shall submit to the authorizing committees, the Committee on Appropriations of the Senate, and the Committee on Appropriations of the House of Representatives a written request that describes—(A)the number of covered loan borrowers in the class and the aggregate amount of the covered student loan obligations that will be cancelled, waived, assumed, discharged, reduced, or otherwise forgiven through the class-based loan forgiveness; (B)the particular reason for the class-based loan forgiveness;(C)the legal authority, including the identification of any authorizing statute or rule, of the Department to grant such class-based loan forgiveness; and(D)the particular reason the student loan obligations are being cancelled, waived, assumed, discharged, reduced, or otherwise forgiven on a collective basis, rather than through a case-by-case assessment. (3)

Resubmission of request

If funds for a class-based loan forgiveness request submitted under paragraph (2) are not specifically appropriated under an appropriations Act or other law during the fiscal year for which the request is submitted—(A)the request shall expire; and (B)if the Secretary desires the request to be reconsidered in a future fiscal year, the Secretary shall resubmit the request for such fiscal year.

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