HR 9609
Less Bureaucracy, Better Student Aid Act
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Bill overview
The Less Bureaucracy, Better Student Aid Act proposes to transfer all federal student loan management and related policies from the Department of Education to the Department of the Treasury. This includes servicing defaulted and non-defaulted loans, Pell Grants, Perkins Loans, and other student financial assistance programs. The goal is to streamline student aid administration and reduce bureaucratic processes. The transfer will be phased in, with the Department of the Treasury assuming full responsibility over time.
Key provisions
- Transfers all student loan servicing and collection functions to the Department of the Treasury.
- Transfers administrative provisions for student financial assistance programs to the Treasury.
- Transfers lender and institution requirements related to education loans to the Treasury.
- Transfers Pell Grants, Supplemental Educational Opportunity Grants, and Federal Family Education Loan programs to the Treasury.
- Transfers the William D. Ford Federal Direct Loan and Federal Perkins Loan programs to the Treasury.
- Transfers need analysis functions to the Treasury.
- The Director of the Office of Management and Budget will ensure that the transfer does not result in a net increase in full-time equivalent employees.
- Delinquent student loan debt will no longer be exempt from the Debt Collection Improvement Act.
Who is affected
- Students
- Federal borrowers
- Department of Education employees
- Department of the Treasury employees
Sponsors
Official sponsors from legislative records.
Primary sponsor
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119th CONGRESS — 2d Session
H. R. 9609
IN THE HOUSE OF REPRESENTATIVES
A BILL
To ensure the Department of Treasury will manage all federal student loans, federal student debt, and policies regarding student aid eligibility, and for other purposes.
This Act may be cited as the Less Bureaucracy, Better Student Aid Act
.
William D. Ford Federal Direct Loan program under part D of such title (20 U.S.C. 1087a et seq.).
Federal Perkins Loans under part E of such title (20 U.S.C. 1087aa et seq.).
Need Analysis under part F of such title (20 U.S.C. 1087kk et seq.).
Health Education Assistance Loan program as provided in part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.).
The transfers required under subsection (a) shall take effect as follows:
With respect to the transfers required under paragraph (3) of subsection (a), on the effective date determined in accordance with paragraph (1) that is on or after the effective date described in subparagraph (B).
Except as otherwise provided by law, the Secretary of the Treasury may, for purposes of performing a function transferred under this Act, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the Secretary of Education immediately before the effective date of the transfer of the function under this Act.
Except as otherwise provided in this Act, the personnel employed in connection with, and the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, used, held, arising from, available to, or to be made available in connection with the functions transferred under this Act, subject to section 1531 of title 31, United States Code, shall be transferred to the Secretary of the Treasury. Unexpended funds transferred pursuant to this section shall be used only for the purposes for which the funds were originally authorized and appropriated.
The Director of the Office of Management and Budget shall ensure that this Act does not result in a net increase in full-time equivalent employees at the Federal agencies impacted by this Act, based on the number of such employees at such agencies on the date of enactment of this Act.
Except as otherwise expressly prohibited by law or otherwise provided in this Act, the Secretary of the Treasury may delegate any of the functions so transferred to such officers and employees of the Department of the Treasury as the Secretary may designate, and may authorize successive redelegations of such functions as may be necessary or appropriate. No delegation of functions under this section or under any other provision of this Act shall relieve the Secretary of the Treasury of responsibility for the administration of the function.
With regard to functions transferred under section 2, a reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or relating to—
the Secretary of Education shall be deemed to refer to the Secretary of the Treasury; and
the Department of Education shall be deemed to refer to the Department of the Treasury.
All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges—
that have been issued, made, granted, or allowed to become effective by the President, any Federal agency or official thereof, or by a court of competent jurisdiction, in the performance of any function that is transferred by this Act; and
that are in effect on the effective date of such transfer (or become effective after such date pursuant to their terms as in effect on such effective date),
shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, the Secretary of the Treasury, any other authorized official, a court of competent jurisdiction, or operation of law.
This Act shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending on the date of the enactment of this Act before the Department of Education (with respect to functions transferred by this Act). Such proceedings and applications shall continue, orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this Act had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this Act had not been enacted.
Except as provided in subsection (e)—
this Act shall not affect suits commenced before the date of enactment of this Act; and
in all such suits, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this Act had not been enacted.
No suit, action, or other proceeding commenced by or against the Department of Education (with respect to the functions transferred by this Act), or by or against any individual in the official capacity of such individual as an officer or employee of the Department of Education (with regard to functions transferred by this Act), shall abate by reason of the enactment of this Act.
Except as otherwise provided by this Act, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to any function transferred by this Act shall apply to the exercise of such function by the Secretary of the Treasury, and other officers of the Department of the Treasury, to which such function is transferred by this Act.
Beginning on the effective date of the transfers required under paragraph (1) of section 2(a) (as determined in accordance with section 2(b)), delinquent or defaulted Federal student loan debt may not be subject to an exemption under paragraph (2)(B) of section 3711(g) of title 31, United States Code, from the requirement under paragraph (1) of such section.
The term delinquent or defaulted, when used with respect to student loan debt, means debt that is considered delinquent or in default in accordance with the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
The Secretary of the Treasury is authorized to use, for such period of time as may reasonably be needed to facilitate the orderly implementation of this Act—
the services of officers, employees, and other personnel of the Department of Education with regard to functions transferred under this Act;
assets of the Department of Education with regard to such functions; and
funds appropriated to such functions.
For purposes of this Act, the term function includes any duty, obligation, power, authority, responsibility, right, privilege, activity, or program.