[Congressional Record Volume 163, Number 112 (Thursday, June 29, 2017)]
[Extensions of Remarks]
[Page E931]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF THE TRANSFORM STUDENT DEBT TO HOME EQUITY ACT

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                           HON. MARCY KAPTUR

                                of ohio

                    in the house of representatives

                        Thursday, June 29, 2017

  Ms. KAPTUR. Mr. Speaker, today I introduce the Transform Student Debt 
to Home Equity Act of 2017--a bill that enables graduates to transform 
their student debt into an opportunity to purchase and own a home.
  With an estimated $1.3 trillion student debt owed to the federal 
government, plunging homeownership rates among young people, and 17.2 
million habitable homes sitting vacant in the United States, our nation 
must find a way to address the student debt vs. housing conundrum. 
Luckily, there is a popular lending instrument already in widespread 
use that could serve as a significant bridge to the future: the home 
mortgage. This common lending tool, overtime, has the power to 
transform student loan repayments into a financial instrument for 
building equity: the home.
  Creating a path for credit worthy student debt holders to convert 
their debt payment stream into home equity would require many federal 
departments to collaborate. However, an initial effort to test the 
concept can take the form of a pilot program through the Department of 
Housing and Urban Development (HUD) and Federal Housing Finance Agency 
(FHFA).
  This is what the Transform Student Debt to Home Equity Act achieves. 
The bill authorizes HUD and FHFA to establish a pilot that connects 
creditworthy federal student debt holders with housing properties for 
sale but held by the federal government. By arranging financing that 
recalculates terms, debt-to-income ratios, interest rates, and other 
factors, short-term student debt could transition into longer-term home 
ownership. Eventually, participants would help restore neighborhoods, 
and buoy property values locally and on the federal ledger simply by 
maintaining and investing in a home mortgage.
  The status quo has created a permanent class of millions of student 
debtors without the opportunity for equity homeownership. We have the 
resources, the power, and a compelling economic interest to do 
something about it.
  Let's get started. I encourage my colleagues to support this measure 
and unleash this debt stranglehold on the next generation.

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