Sending Office: Honorable Marcy Kaptur
Request for Cosponsor(s)
Support the Transform Student Debt to Home Equity Act
Enables graduates to transform their student debt into an opportunity to purchase and own a home.
I invite you to become an original cosponsor of the Transform Student Debt to Home Equity Act of 2017 –a bill that enables graduates to transform their student debt into an opportunity to purchase and own a home.
With an estimated $1.3 trillion student debt owed to the federal government, plunging homeownership rates among young people, and 17.2 million habitable homes sitting vacant in the United States, our nation must find a way to address the student debt vs.
housing conundrum. Luckily, there is a popular lending instrument already in widespread use that could serve as a significant bridge to the future:
the home mortgage. This common lending tool, overtime, has the power to transform student loan repayments into a financial instrument for building equity:
Creating a path for credit worthy student debt holders to convert their debt payment stream into home equity would require many federal departments to collaborate. However, an initial effort to test the concept can take the form of a pilot program through
the Department of Housing and Urban Development (HUD) and Federal Housing Finance Agency (FHFA).
This is what the Transform Student Debt to Home Equity Act achieves.
The bill authorizes HUD and FHFA to establish a pilot demonstration that connects creditworthy federal student debt holders with housing properties for sale but held by the federal government. The goal of the pilot project would be to create a program that
recalculates financing terms, debt-to-income ratios, interest rates, or other factors in order to transition federal student loan debt into long-term homeownership. The bill also requires the related agencies to report to Congress on such a pilot program
within 90 days of enactment.
The Transform Student Debt to Home Equity Act does not direct any specific plan but does request the related agencies propose a pilot program that can be used as a national model for enabling college graduates to restructure their student debt into an opportunity
to purchase habitable foreclosed and vacant homes across the country. Eventually, participants would help strengthen neighborhoods, and buoy property values locally and on the federal ledger simply by maintaining and investing in a home mortgage.
The status quo has created a permanent class of millions of student debtors without the opportunity for equity homeownership. We have the resources, the power, and a compelling economic interest to do something about it. Let’s get started! Support the
Transform Student Debt to Home Equity Act as a cosponsor. Please contact my staff Edward Edney at Edward.Edney@mail.house.gov with any questions.
Member of Congress
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