Student Loan Accountability Act
Bill: H.R.8006 | Sponsor: Rep. Ferguson, A. Drew, IV (R-GA)
Policy area: Education

Summary:
Student Loan Accountability Act
This bill generally prohibits the Departments of Education, Justice, or the Treasury from taking any action to cancel or forgive the outstanding balances, or portion of balances, of covered loans. Covered loans refer to Federal Family Education Loans, Federal Direct Loans, Federal Perkins Loans, and loans under the Health Education Assistance Loan Program.
The prohibition does not apply to targeted federal student loan forgiveness, cancellation, or repayment programs carried out under the Higher Education Act of 1965.
Additionally, the bill repeals the temporary tax-free treatment of discharged student loan debt. It also prohibits tax return information from being shared for the purpose of administering a student loan cancellation plan.

To prohibit the mass cancellation of student loans.

    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 ``Student Loan Accountability Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Statutory authority has not been provided to the 
        executive branch of the Federal Government to cancel student 
        loans on a mass scale.
            (2) It is unfair for taxpayers who paid student loans or 
        did not attend college to pay for those who chose to take 
        student loans.
            (3) Canceling student loan debt would disproportionately 
        assist wealthy borrowers over underprivileged borrowers.

SEC. 3. PROHIBITION ON MASS CANCELLATION OF STUDENT LOANS.

    (a) Prohibition.--
            (1) In general.--Notwithstanding any other provision of 
        law, the Secretary of Education, the Secretary of the Treasury, 
        or the Attorney General shall not take any action to cancel or 
        forgive the outstanding balances, or portion of balances, of 
        covered loans, except as provided in paragraph (2).
            (2) Exemption.--The prohibition described in paragraph (1) 
        shall not apply to targeted Federal student loan forgiveness, 
        cancellation, or repayment programs carried out under the 
        Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
    (b) Definitions.--In this section, the term ``covered loan'' 
means--
            (1) 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.) before, on, or 
        after the date of enactment of this Act; or
            (2) a loan under the Health Education Assistance Loan 
        Program under title VII of the Public Health Service Act (42 
        U.S.C. 292 et seq.) made before, on, or after the date of 
        enactment of this Act.
    (c) Limitation.--The Secretary of Education, the Secretary of the 
Treasury, or the Attorney General may not implement, or publish in any 
form, any regulation, or take any action, that modifies, alters, 
amends, cancels, discharges, forgives, or defers the repayment of any 
student debt not expressly permitted within statute or regulation, 
regarding covered loans, except to the extent that such regulation or 
action reflects the clear and unequivocal intent of Congress in 
legislation.

SEC. 4. REPEAL OF CERTAIN STUDENT LOAN FORGIVENESS MODIFICATIONS.

    (a) In General.--Section 108(f) of the Internal Revenue Code of 
1986 is amended by striking paragraph (5).
    (b) Effective Date.--The amendment made by this section shall apply 
to discharges of loans after the date of the enactment of this Act.

SEC. 5. PROHIBITION OF TAX DATA SHARING.

    (a) In General.--Section 6103(l)(13)(D)(ii) of the Internal Revenue 
Code of 1986 is amended by adding ``or return information for the 
purpose of administering a student loan cancellation plan unrelated to 
reasons authorized under subparagraphs (A), (B), and (C)'' after 
``investigations or prosecutions''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disclosures made after the date of the enactment of this Act.
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