Debt Cancellation Accountability Act of 2022
This bill prohibits the Department of Education from providing class-based loan forgiveness unless funds have been specifically requested and appropriated for this purpose. Class-based loan forgiveness refers to the cancellation, waiver, assumption, discharge, reduction, or other forgiveness of any obligation due on Federal Family Education Loans, Federal Direct Loans, or Federal Perkins Loans (1) on a class-wide basis and for a class of two or more loan borrowers, and (2) that totals more than $1 million.
The prohibition does not apply to targeted loan forgiveness programs established under the Higher Education Act of 1965 and in effect before the enactment of this bill if the loan forgiveness is granted for a single borrower on a case-by-case basis.
To prevent class-based loan forgiveness for Federal student loans under 
   title IV of the Higher Education Act of 1965 without the explicit 
          appropriation of funds by Congress for such purpose.

    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 ``Debt Cancellation Accountability Act 
of 2022''.

SEC. 2. PROHIBITION ON CLASS-BASED LOAN FORGIVENESS WITHOUT PROPER 
              APPROVAL.

    Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by adding at the end the following:

``SEC. 494A. PROHIBITION ON CLASS-BASED LOAN FORGIVENESS WITHOUT PROPER 
              APPROVAL.

    ``(a) Definitions.--In this section:
            ``(1) Class-based loan forgiveness.--
                    ``(A) In general.--The term `class-based loan 
                forgiveness' means the cancellation, waiver, 
                assumption, discharge, reduction, or other forgiveness 
                of any obligation due on covered loans--
                            ``(i) on a class-wide basis and for a class 
                        of 2 or more covered loan borrowers; and
                            ``(ii) that totals more than $1,000,000.
                    ``(B) Exception for existing targeted loan 
                forgiveness programs.--The term `class-based loan 
                forgiveness' does not include a targeted program of 
                loan forgiveness explicitly established under this Act 
                and in effect on the day before the date of enactment 
                of the Debt Cancellation Accountability Act of 2022, if 
                the cancellation, waiver, assumption, discharge, 
                reduction, or other forgiveness of any obligation due 
                on a covered loan is--
                            ``(i) granted for a single covered loan 
                        borrower; and
                            ``(ii) based upon an individualized, case-
                        by-case determination of the covered loan 
                        borrower's--
                                    ``(I) eligibility for the targeted 
                                loan forgiveness; and
                                    ``(II) satisfaction of all terms 
                                and conditions precedent to receive the 
                                targeted loan forgiveness.
            ``(2) Covered loan.--The term `covered loan' means a loan 
        made, insured, or guaranteed under part B, D, or E.
    ``(b) Limitation on Department Authority.--Notwithstanding any 
other provision of this Act or any other law, the Secretary shall have 
no authority to provide class-based loan forgiveness unless funds have 
been specifically requested and appropriated for the purpose through 
the process described in subsection (c).
    ``(c) Request and Appropriation Process.--
            ``(1) In general.--The Secretary shall not provide any 
        class-based loan forgiveness until--
                    ``(A) the Secretary has submitted a request under 
                paragraph (2); and
                    ``(B) funds have been specifically appropriated for 
                such request by Congress through an appropriations Act 
                or other law.
            ``(2) Request.--In any case where the Secretary determines 
        class-based loan forgiveness is necessary, the Secretary shall 
        submit to the authorizing committees, the Committee on 
        Appropriations of the Senate, and the Committee on 
        Appropriations of the House of Representatives a written 
        request that describes--
                    ``(A) the number of covered loan borrowers in the 
                class and the aggregate amount of the covered student 
                loan obligations that will be cancelled, waived, 
                assumed, discharged, reduced, or otherwise forgiven 
                through the class-based loan forgiveness;
                    ``(B) the particular reason for the class-based 
                loan forgiveness;
                    ``(C) the legal authority, including the 
                identification of any authorizing statute or rule, of 
                the Department to grant such class-based loan 
                forgiveness; and
                    ``(D) the particular reason the student loan 
                obligations are being cancelled, waived, assumed, 
                discharged, reduced, or otherwise forgiven on a 
                collective basis, rather than through a case-by-case 
                assessment.
            ``(3) Resubmission of request.--If funds for a class-based 
        loan forgiveness request submitted under paragraph (2) are not 
        specifically appropriated under an appropriations Act or other 
        law during the fiscal year for which the request is submitted--
                    ``(A) the request shall expire; and
                    ``(B) if the Secretary desires the request to be 
                reconsidered in a future fiscal year, the Secretary 
                shall resubmit the request for such fiscal year.''.
                                 <all>
Debt Cancellation Accountability Act of 2022
To prevent class-based loan forgiveness for Federal student loans under title IV of the Higher Education Act of 1965 without the explicit appropriation of funds by Congress for such purpose.
Debt Cancellation Accountability Act of 2022
Rep. Davidson, Warren