Congressional Review Act Student Loans
The Congressional Review Act (CRA) is a law that allows Congress to review and potentially overturn regulations issued by federal agencies. In recent years, the CRA has been used to repeal a number of regulations related to environmental protections, labor rights, and other issues. More recently, there has been talk of using the CRA to repeal regulations related to student loans. Here’s what you need to know.
What is the Congressional Review Act?
The Congressional Review Act is a law that was passed in 1996. It allows Congress to review and potentially overturn regulations issued by federal agencies. If both the House of Representatives and the Senate pass a resolution of disapproval under the CRA, and the President signs that resolution, the regulation is repealed. The CRA also prevents the agency from issuing a similar regulation in the future without specific authorization from Congress.
What are the regulations related to student loans?
There have been several regulations related to student loans that have been targeted for repeal under the CRA. These include regulations related to loan forgiveness, loan discharge, and borrower defense to repayment. Some lawmakers have argued that these regulations are too generous and would be too expensive to implement. Others argue that these regulations are necessary to protect borrowers who were defrauded by their schools or who are struggling to repay their loans.
What has happened with the CRA and student loans so far?
There have been several attempts to use the CRA to repeal regulations related to student loans. In 2020, a CRA resolution was passed by the House of Representatives to repeal a Department of Education regulation related to borrower defense to repayment. However, the resolution was not taken up by the Senate. More recently, there have been discussions of using the CRA to repeal regulations related to loan forgiveness and discharge that were put in place by the Biden administration.
Why are some lawmakers pushing to use the CRA to repeal these regulations?
Some lawmakers argue that the regulations related to loan forgiveness and discharge are too expensive and would be a burden on taxpayers. They also argue that the regulations are unfair to those who have already repaid their loans or who did not take out loans in the first place. Others argue that the regulations are necessary to provide relief to borrowers who are struggling with their debt and to hold schools accountable for their actions.
What happens if the CRA is used to repeal these regulations?
If the CRA is used to repeal regulations related to student loans, it would prevent the Department of Education from issuing similar regulations in the future without specific authorization from Congress. It would also mean that borrowers who were counting on loan forgiveness or discharge may no longer be eligible for those programs. However, it is unclear what the long-term impact of repealing these regulations would be on borrowers, schools, and the overall student loan system.
FAQs
What is loan forgiveness?
Loan forgiveness is a program that allows borrowers to have some or all of their student loans forgiven if they meet certain criteria. This can include working in certain public service jobs, making payments for a certain amount of time, or being defrauded by their school.
What is loan discharge?
Loan discharge is a program that allows borrowers to have their student loans canceled if they meet certain criteria. This can include being permanently disabled, attending a school that closed while they were enrolled, or being defrauded by their school.
What is borrower defense to repayment?
Borrower defense to repayment is a program that allows borrowers to have their student loans forgiven if they were defrauded by their school. This can include false advertising, misleading statements, or other deceptive practices.
What is the impact of using the CRA to repeal student loan regulations?
The impact of using the CRA to repeal student loan regulations is unclear. It could prevent borrowers from receiving loan forgiveness or discharge, but it could also prevent schools from engaging in fraudulent or deceptive practices. Ultimately, it will be up to Congress to decide whether the benefits of repealing these regulations outweigh the costs.
Conclusion
The Congressional Review Act has been used to repeal a number of regulations in recent years, and there have been discussions of using it to repeal regulations related to student loans.
While some argue that these regulations are too expensive and unfair, others argue that they are necessary to protect borrowers and hold schools accountable. Ultimately, it will be up to Congress to decide whether to use the CRA to repeal these regulations and what the long-term impact of that decision will be.
