Stop Reckless Student Loan Actions Act of 2023

To amend the Higher Education Relief Opportunities for Students Act of 2003 to strike the Secretary's unilateral authority during a national emergency, and for other purposes. 1. Short title This Act may be cited as the Stop Reckless Student Loan Actions Act of 2023 2. Findings Congress finds the following: (1) The Higher Education Relief Opportunities for Students Act of 2003 ( 20 U.S.C. 1098aa et seq. (2) The authority provided under the Higher Education Relief Opportunities for Students Act of 2003 has been abused by the executive branch during the COVID–19 national emergency regarding the payment of Federal student loans. (3) The unilateral payment pause on Federal student loans has cost more than $160,000,000,000. (4) The unilateral payment pause on Federal student loans has inflationary impacts. (5) The individuals benefitting the most from the payment pause continued by the executive branch are doctors, who receive 11 times the benefit of bachelor’s degree recipients and 16 times the benefit of associate’s degree recipients. 3. Amendments to the Higher Education Relief Opportunities for Students Act of 2003 Section 5(2) of the Higher Education Relief Opportunities for Students Act of 2003 ( 20 U.S.C. 1098ee (1) in the matter preceding subparagraph (A), by inserting (or the spouse or dependent of the parent, as that term is used in section 480 of the Higher Education Act of 1965 ( 20 U.S.C. 1087vv an individual (2) in subparagraph (A), by inserting and (3) in subparagraph (B), by striking the semicolon and inserting a period; and (4) by striking subparagraphs (C) and (D). 4. Higher education relief opportunities for civilians in the case of a national emergency and limitations on covered loans (a) Temporary authority for higher education relief (1) In general Subject to the limitation provided in subsection (c), during the 90 day period after a declaration of a national emergency under section 201 of the National Emergencies Act ( 50 U.S.C. 1621 20 U.S.C. 1071 et seq. (2) Limitation The Secretary of Education may not use the temporary authority provided under paragraph (1) in consecutive 90 day periods. (b) Recommendations for higher education relief from the secretary of education In the case of a national emergency declared by the President under section 201 of the National Emergencies Act ( 50 U.S.C. 1621 20 U.S.C. 1070 et seq. (c) Limits on executive authority To suspend or defer federal student loan payments or interest (1) In general Notwithstanding any other provision of law, the President or the Secretary of Education may not suspend or defer Federal student loan payments on covered loans or the accrual of interest on covered loans of borrowers with annual household incomes over 400 percent of the poverty line (as determined under the poverty guidelines updated periodically in the Federal Register by the Department of Health and Human Services under the authority of section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) (2) Application of congressional review act In any case where the President or the Secretary of Education suspends or defers Federal student loan payments on covered loans or the accrual of interest on covered loans through any type of executive or regulatory action, the suspension or deferral shall be— (A) deemed to be a major rule for purposes of chapter 8 Congressional Review Act (B) subject to congressional disapproval in accordance with such chapter. (d) Limits on Executive Authority To Cancel Student Loans (1) In General Notwithstanding any other provisions of law, the President or the Secretary of Education may not cancel the outstanding balances, or a portion of the balances, on covered loans due to the COVID–19 national emergency or any other national emergency. (2) Application of Congressional Review Act In any case where the President or the Secretary of Education cancels the outstanding balances, or portion of the balances, on covered loans through any type of executive or regulatory action, the cancellation shall be— (A) deemed to be a major rule for purposes of chapter 8 (B) subject to congressional disapproval in accordance with such chapter. (e) Implementation (1) Regarding suspensions or deferments of Federal student loan payments ongoing at the time of enactment Not later than the effective date of this Act, any suspension or deferment of Federal student loan payments on covered loans due to the COVID–19 national emergency shall terminate. Notwithstanding any other provision of law, a subsequent suspension or deferment of Federal student loan payments on covered loans for the COVID–19 national emergency shall be prohibited. (2) Regarding cancellation of student loans prior to effective date Any cancellation of the outstanding balance, or portion of a balance, on a covered loan made by the President or Secretary of Education through any type of executive or regulatory action in the 30 days before the effective date of this Act shall be— (A) deemed to be a major rule for purposes of chapter 8 Congressional Review Act (B) subject to congressional disapproval in accordance with such chapter. (f) Definition of covered loan In this subsection, the term covered loan 20 U.S.C. 1071 et seq. 5. Effective date This Act, and the amendments made by this Act, shall take effect on the date that is 30 days after the date of enactment of this Act.

Summary: Stop Reckless Student Loan Actions Act of 2023 This bill limits executive authority to (1) suspend or defer federal student loan payments or interest accrual on such loans, and (2) cancel federal student loans. Specifically, the bill prohibits the President or the Department of Education (ED) from suspending or deferring federal student loan payments or the accrual of interest on such loans for borrowers with annual household incomes over 400% of the federal poverty line. Further, ED may only suspend or defer federal student loan payments or the accrual of interest for such loans for a total of 90 days after the declaration of a national emergency by the President. ED must submit recommendations to Congress on relief necessary for recipients of student financial-aid assistance. Additionally, the bill prohibits the President or ED from cancelling the outstanding balances or portions of balances on student loans due to the COVID-19 national emergency or any other national emergency. Executive or regulatory action to suspend or defer federal student loan payments or to cancel federal student loans shall be subject to congressional review. The bill also revises the definition of affected individual for purposes of the Higher Education Relief Opportunities for Students (HEROES) Act of 2003 to exclude from relief under the act (1) an individual who resides or is employed in an area that is declared a disaster area in connection with a national emergency; or (2) an individual who suffered direct economic hardship as a direct result of a war, military operation, or national emergency.