Federal Student Loan Integrity Act
Bill: H.R.7058 | Sponsor: Rep. Good, Bob (R-VA)
Policy area: Education

Summary:
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 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.

To prohibit abuse of the authority of the Secretary of Education under 
   the HEROES Act in connection with the COVID-19 national emergency 
                  declaration, 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 ``Federal Student Loan Integrity 
Act''.

SEC. 2. PURPOSE; FINDINGS.

    (a) Purpose.--It is the purpose of this Act to--
            (1) clarify the intent of Congress with respect to the 
        authorities provided to the Secretary of Education under the 
        Higher Education Relief Opportunities for Students Act of 2003 
        (20 U.S.C. 1098bb) (in this section referred to as the ``HEROES 
        Act''); and
            (2) prevent further abuse of the Secretary's authority 
        provided under the HEROES Act in connection with the COVID-19 
        national emergency declaration.
    (b) Findings.--Congress finds the following:
            (1) As of March 13, 2020, there has been a moratorium on 
        payments, accrual of interest, and collections on all Federal 
        student loans.
            (2) The moratorium is the largest benefit provided by 
        taxpayers in the history of the Federal student loan program.
            (3) Excluding section 3513 of the CARES Act (20 U.S.C. 1001 
        note), this benefit was not explicitly authorized by Congress.
            (4) Since December 4, 2020, the Secretary of Education has 
        cited the HEROES Act as the authority to extend the moratorium 
        on student loan payments for ``affected individuals'', in 
        connection with the March 13, 2020, national emergency 
        declaration.
            (5) The Secretary has undermined the intent of Congress and 
        abused its authority provided by the HEROES Act to amend 
        statutory provisions of title IV of the Higher Education Act 
        (20 U.S.C. 1070 et seq.) to provide benefits for borrowers 
        beyond those deemed as ``affected individuals''.

SEC. 3. PROHIBITION.

    The Secretary of Education may not use the authority under section 
2(a)(1) of the Higher Education Relief Opportunities for Students Act 
of 2003 (20 U.S.C. 1098bb(a)(1)) to issue a waiver or modification, or 
to extend a waiver or modification issued before the effective date of 
this Act, of any statutory or regulatory provision applicable to the 
student financial assistance programs under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.) in connection with the 
national emergency declared by the President on March 13, 2020, 
pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.) 
(Proclamation 9994).

SEC. 4. LIMITATION ON WAIVERS AND MODIFICATIONS.

    Section 2(a)(1) of the Higher Education Relief Opportunities for 
Students Act of 2003 (20 U.S.C. 1098bb(a)(1)) is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
                    ``(A) Authority of secretary.--Except as provided 
                in subparagraph (B), notwithstanding''; and
            (2) by adding at the end the following:
                    ``(B) Limitation.--A waiver or modification under 
                paragraph (1) may not--
                            ``(i) provide for a period that exceeds 30 
                        days during which--
                                    ``(I) payments of principal or 
                                interest due on loans made, insured, or 
                                guaranteed under part B, D, or E of 
                                title IV of the Act are suspended; or
                                    ``(II) interest does not accrue on 
                                such loans; or
                            ``(ii) result in the discharge or 
                        cancellation of a loan made, insured, or 
                        guaranteed under part B, D, or E of title IV of 
                        the Act.''.

SEC. 5. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
May 1, 2022.
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