Stop Reckless Student Loan Actions Act of 2022
Bill: S.4094 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Education

Summary:
Stop Reckless Student Loan Actions Act of 2022
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.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Reckless Student Loan Actions 
Act of 2022''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Higher Education Relief Opportunities for Students 
        Act of 2003 (20 U.S.C. 1098aa et seq.) was intended to provide 
        relief opportunities for members of the armed services.
            (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 $100,000,000,000.
            (4) 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 14 times the benefit of associate's degree recipients.

SEC. 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) is amended--
            (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))'' after ``an individual'';
            (2) in subparagraph (A), by inserting ``and'' after the 
        semicolon;
            (3) in subparagraph (B), by striking the semicolon and 
        inserting a period; and
            (4) by striking subparagraphs (C) and (D).

SEC. 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), the Secretary of Education 
        may suspend or defer Federal student loan payments or the 
        accrual of interest for loans made, insured or guaranteed under 
        part B, D, or E of title IV of the Higher Education Act of 1965 
        (20 U.S.C. 1071 et seq.; 1087a et seq.; 1087aa et seq.) or 
        loans under the Health Education Assistance Loan Program.
            (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), the Secretary of Education shall submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Education and Labor of the House of Representatives, not later than 
60 days after the date of such declaration, a report that includes any 
recommendations on relief necessary for recipients of student financial 
assistance under title IV of the Higher Education Act of 1965 (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 of title 5, United States Code (commonly 
                known as the ``Congressional Review Act''); and
                    (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 of title 5, United States Code (commonly 
                known as the ``Congressional Review Act''); and
                    (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 of title 5, United States Code (commonly 
                known as the ``Congressional Review Act''); and
                    (B) subject to congressional disapproval in 
                accordance with such chapter.
    (f) Definition of Covered Loan.--In this subsection, the term 
``covered loan'' means a loan made, insured, or guaranteed under part 
B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1071 et seq.; 1087a et seq.; 1087aa et seq.) or a loan under the Health 
Education Assistance Loan Program.

SEC. 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.
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