Protecting Taxpayers from Student Loan Bailouts Act

Key Points

• Would block the Education Department from moving forward with major student loan rules if they would increase the government’s subsidy costs.
• Applies to big-impact actions the Secretary of Education says are “economically significant,” including ones expected to affect the economy by $100 million or more per year.
• Requires the Secretary to estimate whether a draft student loan rule would raise subsidy costs; if yes, they must stop work on that rule.
• Also blocks proposed rules, final rules, or other executive actions on federal student aid if they are economically significant and raise subsidy costs.
• For borrowers, this could limit future large-scale changes that reduce what people owe or make repayment easier if those changes would cost the government more.