Federal Employee Student Debt Transparency Act
The Federal Employee Student Debt Transparency Act would require certain high-level federal employees to disclose their federal student loan debt. Specifically, Senior Executive Service (SES) members and Schedule C employees (those in confidential or policy-determining positions) must report the outstanding principal and interest on federal student loans (Direct Loans and loans made, insured, or guaranteed under other parts of the Higher Education Act) and update these disclosures annually. The act sets deadlines: initial disclosure within 60 days after enactment, annual reports by February 28 each year, and new covered employees must file within 60 days of taking their position. Additionally, the Director of the Office of Government Ethics would report to Congress by May 1 each year with the total debt owed by all covered employees and identify any who failed to file. The goal is increased transparency and oversight of personal debt among top executive branch employees.
Key Points
- 1Covered employees: Senior Executive Service members and Schedule C employees (confidential or policy-determining positions).
- 2What must be disclosed: outstanding balances of federal student loans, including Direct Loans (Part D) and loans under Parts B or E of Title IV of the HEA (i.e., various federal loan programs).
- 3Filing deadlines: initial disclosure within 60 days after enactment; annual disclosures due by February 28 each year; new covered employees must disclose within 60 days of assuming the position.
- 4Reporting to Congress: by May 1 each year, the Director of the Office of Government Ethics must provide (A) total debt owed by all covered employees and (B) the names of any covered employees who failed to file or report.
- 5Purpose and scope: focused solely on federal student loan debt of SES and Schedule C employees; private loans and non-federal debt are not covered.