Federal Student Loan Integrity Act This bill limits the authority of the Department of Education (ED) to waive or modify statutes and regulations in response to military contingencies or national emergencies, including by prohibiting ED from further using this authority in connection with the COVID-19 national emergency. Under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003, ED may waive or modify any statutory or regulatory provision applicable to federal student-aid programs as ED deems necessary in connection with a war or other military operation or national emergency. This bill prohibits ED from issuing a waiver or modification that (1) provides for a period that exceeds 30 days during which payments of principal or interest due on federal student loans are suspended or interest does not accrue on such loans, or (2) results in the discharge or cancellation of any outstanding balance owed on federal student loans. Further, the bill prohibits ED from using this authority to waive or modify any statutory or regulatory provision applicable to federal student-aid programs in connection with the national emergency declared by the President on March 13, 2020, to respond to COVID-19.
The bill introduces critical restrictions on the Secretary's ability to manage student loan programs during national emergencies. Under its stipulations, waivers for deferments or interest suspensions cannot exceed 30 days, and it explicitly prevents any discharges or cancellations of student loan balances. By tightening regulations surrounding the HEROES Act, the bill aims to prevent what proponents regard as the overreach of federal authority in student loan management, ensuring that any benefits administered remain limited and controlled.
House Bill 380, also known as the Federal Student Loan Integrity Act, aims to limit the Department of Education's authority regarding federal student loans particularly in light of the COVID-19 national emergency. Specifically, the bill clarifies that the Secretary of Education is prohibited from using the HEROES Act to waive or modify regulations governing federal student aid programs beyond established limits. This change is brought about due to concerns over the previous broad application of the HEROES Act, which allowed the Secretary to extend the moratorium on student loan payments indefinitely under certain conditions.
The introduction of HB 380 has prompted debate among legislators concerning the balance of power in executive decision-making. Proponents argue that it protects taxpayer interests and ensures that decisions regarding federally-backed financial support stay within the bounds of congressional intent. However, opponents express concern that these limitations may prevent timely and necessary relief for borrowers who are still navigating the challenges posed by the pandemic. The issue at hand reflects broader tensions regarding federal authority, crisis management, and educational equity.