I 
115TH CONGRESS 
1ST SESSION H. R. 3134 
To direct the Secretary of the Department of Housing and Urban Develop-
ment and the Director of the Federal Housing Finance Agency to develop 
a program to provide assistance to creditworthy borrowers with Federal 
student debt in purchasing certain foreclosed homes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2017 
Ms. KAPTUR (for herself, Mr. CLAY, Mr. EVANS, Mr. BRADY of Pennsylvania, 
Ms. FUDGE, Ms. JAYAPAL, and Ms. PINGREE) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To direct the Secretary of the Department of Housing and 
Urban Development and the Director of the Federal 
Housing Finance Agency to develop a program to provide 
assistance to creditworthy borrowers with Federal stu-
dent debt in purchasing certain foreclosed homes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Transforming Student 
Debt to Home Equity Act of 2017’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) In the fourth quarter of 2016, over 
17,200,000 homes remain vacant in the United 
States. 
(2) These extended vacancies depress neighbor-
hood property values and create a downward spiral 
in neighborhood stability in already troubled commu-
nities. 
(3) Meanwhile, due to climbing expenses of 
higher education, the total Federal student debt 
owed equals $1,300,000,000. 
(4) More than 40,000,000 Americans have at 
least one outstanding student loan, up dramatically 
from 29,000,000 Americans just 10 years ago. 
(5) Student loan repayments are forcing mil-
lions of young families out of purchasing their first 
home, as they cannot afford to save for a down pay-
ment or qualify for a mortgage. 
(6) It is imperative to find a way to systemati-
cally convert debt streams into equity streams, oth-
erwise housing purchases will continue to be sluggish 
and thousands more Americans will retire saddled 
with student loan debt never having had the oppor-
tunity to accumulate equity. 
(7) It is in the interest of the Federal Govern-
ment to use the resources at its disposal, including 
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both housing properties held in trust and student 
debt obligations, to put reverse pressure on these 
downward trends. 
(8) By arranging financing that recalculates 
terms, debt-to-income ratios, mortgage interest 
rates, and other factors, short-term student debt 
could transition into longer term home ownership. 
(9) The goal is to connect creditworthy Federal 
student debt holders with housing properties for sale 
but held by the Federal Government. 
(10) Eventually, participants can help restore 
neighborhoods, transform their debt to equity, and 
buy property values locally and on the Federal ledg-
er simply by maintaining and investing in a home 
mortgage. 
SEC. 3. PROGRAM TO EXPAND ACCESS TO MORTGAGES TO 
ELIGIBLE 
CREDITWORTHY 
HOMEBUYERS 
WITH FEDERAL STUDENT LOAN DEBT. 
(a) ESTABLISHMENT.—From amounts appropriated 
pursuant to subsection (g), the Secretary of the Depart-
ment of Housing and Urban Development and the Direc-
tor of the Federal Housing Finance Agency shall jointly 
establish and carry out a pilot demonstration program to 
provide assistance to eligible applicants in purchasing eli-
gible properties. 
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