Legislative Tracker: Loan Program Reform
On this page, you'll find proposals relating to loan program reform.
H.R.2981 — Alleviating Intergenerational Debt (AID Act)
Sponsor: Stevens [D-MI]
Introduced: 04/27/2023
NASFAA Summary & Analysis: This bill would amend the HEA and amend the Student Aid Index (SAI) to create a new allowance against income for dependent students’ parents who have student loan debt. The bill puts into place a measure that would require an annual report from the Department of Education highlighting the number and percentage of students who claimed the allowance. The report would also need to highlight the average allowance amount. These numbers would need to be separated into students who did qualify for a Pell Grant and students who did not qualify.
H.R.2874/S.1292 — Flight Education Access Act
Sponsor: Allred [Rep.-D-TX] & Baldwin [Sen.-D-WI]
Introduced: 04/26/2023
NASFAA Summary & Analysis: This bill would amend the HEA to increase the federal student loan limits for students in undergraduate flight education and training programs. This bill increases a dependent student’s aggregate borrowing limit for Federal Direct Unsubsidized Stafford Loans to $111,000 and $137,500 for independent students, respectively. It also increases the aggregate borrowing limit of Federal Direct Stafford Loans to $65,000. This bill also puts into place a measure that would require that ED collect annual data on the completion rate (and other metrics outlined in the bill) of each undergraduate flight education and training program. Lastly, this bill would require that the GAO report on the bill’s implementation, the number of eligible programs offered, student demographic data, and provide any feedback to strengthen the program, among other things.
S.300 — LOAN Act of 2023
Sponsor: Rubio [Sen.-R-FL]
Introduced: 02/07/2023
NASFAA Summary & Analysis: This bill would eliminate interest and replace it with a one-time, non-compounding origination fee that borrowers will pay over the life of the loan. For borrowers who pay off their loans faster than the established repayment plan’s time limit, ED could credit or refund borrowers a calculated amount of the financing fee. The bill would also allow only two repayment plan options, the standard 10-year repayment plan, and an income driven repayment plan, to be created with this bill. Borrowers would automatically be placed in the IDR plan, but can elect to move to the standard repayment plan.
Publication Date: 4/27/2023