Cole Introduces Can't Cancel Your Own Debt Act

Statement

Congressman Tom Cole (OK-04) this week introduced the Can't Cancel Your Own Debt Act. This legislation would disqualify members of Congress from participating in federal programs enacted during their tenure to cancel student loans -- whether established by executive order, agency action or an Act of Congress. It would also bar members of Congress from any service- or employment-based student loan cancellation for time served as a Member of Congress.

"The American people expect their representatives to act impartially and in the best interests of their constituents -- not their own financial interest," said Cole. "It is simply unconscionable that a Member of Congress making an annual salary of $174,000, paid for by the American taxpayer, could then personally benefit by voting to cancel the repayment of their federal student loans. Members of Congress collecting a six figure salary should surely be required to repay the money they borrowed from the U.S. Treasury.

"Members should not be voting for or advocating for legislation or executive orders that put their pocketbooks over policy. Indeed, it is corrupt, and I am introducing this legislation because a number of my congressional colleagues seem to have forgotten that. When members of Congress are pushing policies that selectively cancel certain types of debts and use thresholds that are tailored to their own situations, we must ask ourselves: who are they really fighting for?"

Original cosponsors include Congressman Steve Womack (AR-03), Congressman Brian Babin (TX-36), Congressman Michael Burgess (TX-26), Congresswoman Beth Van Duyne (TX-24), Congresswoman Ashley Hinson (IA-01), Congressman Mike Bost (IL-12), Congressman Mike Carey (OH-15), Congresswoman Stephanie Bice (OK-05), Congressman Brett Guthrie (KY-02), Congressman Dusty Johnson (SD-At Large), Congressman Barry Loudermilk (GA-11), Congressman Louie Gohmert (TX-01), Congresswoman Julia Letlow (LA-05) and Congressman Ken Calvert (CA-42).

Bill text is available here.

Background

On January 25, 2022, a group of 80 House and Senate Democrats sent this letter to President Joe Biden requesting that he immediately cancel up to $50,000 in federal student loan debt. Last Congress, progressive House members introduced legislation to cancel all student loans in their entirety. According to recent financial disclosures, 17 of these signers collectively reported personal student loan debt of up to $1,865,000, and 11 of these 17 would have their student loan debt fully cancelled using this $50,000 threshold -- a clear financial windfall.

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