H.R.937 - Protecting Taxpayers from Student Loan Bailouts Act (119th Congress)
Summary
H.R. 937, the "Protecting Taxpayers from Student Loan Bailouts Act," aims to limit the Secretary of Education's authority to issue regulations and executive actions related to student loans. Specifically, it prevents the Secretary from implementing regulations or actions deemed economically significant if they increase subsidy costs. The bill amends the Higher Education Act of 1965 to include these limitations.
Expected Effects
The bill, if enacted, would significantly restrict the Department of Education's ability to enact new student loan forgiveness programs or modify existing ones in ways that increase costs. This could lead to fewer changes in student loan policies and potentially limit future student loan relief measures. The impact would primarily be felt by student loan borrowers and the institutions that administer these loans.
Potential Benefits
- Reduced taxpayer burden: By preventing increases in subsidy costs, the bill aims to protect taxpayers from potentially expensive student loan programs.
- Increased fiscal responsibility: The bill promotes fiscal responsibility by requiring the Secretary of Education to consider the economic impact of regulations.
- Constraints on executive overreach: The bill limits the power of the executive branch in student loan policy, potentially leading to more Congressional oversight.
- Potential for more predictable policy: By requiring cost analysis, the bill could lead to more predictable and transparent student loan policies.
- Focus on existing programs: The bill may encourage a focus on improving the efficiency and effectiveness of existing student loan programs rather than creating new ones.
Most Benefited Areas:
Potential Disadvantages
- Limited flexibility: Restricting the Secretary's authority could hinder the Department of Education's ability to respond to changing economic conditions or address unforeseen issues in the student loan system.
- Reduced student loan relief: The bill could limit the availability of student loan forgiveness programs, potentially harming borrowers struggling to repay their loans.
- Increased burden on borrowers: Without the possibility of new relief measures, borrowers may face increased financial strain.
- Potential for economic stagnation: Limiting student loan relief could reduce consumer spending and economic activity.
- Hinders innovation: The bill could discourage the Department of Education from exploring innovative solutions to address student loan debt.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's allocation of legislative power to Congress (Article I, Section 1). By limiting the Secretary of Education's authority, Congress is asserting its role in shaping education policy. However, the bill's impact on the general welfare (as stated in the Preamble) could be debated, depending on one's view of student loan forgiveness programs.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).