DC Student Loan Authority Establishment Act of 2026

Statement of Introduction DC Student Loan Authority Establishment Act of 2026 January 23, 2026 Today, alongside Councilmembers Pinto, Nadeau, and R. White, I am introducing the DC Student Loan Authority Establishment Act of 2026, a bill to create a public lending institution in Washington, D.C. to issue student loans and help D.C. residents refinance existing education debt. This statement is written for the public and designed to be clear for the average reader. The District has expanded borrower protections, but many residents still depend on private student loans that can include high interest, surprise fees, and limited flexibility when financial circumstances change. Those costs make it harder to complete school, switch careers, or work in public service roles without fear of falling behind. This bill creates a public alternative built around fairness and affordability. This bill builds on work first advanced by former Councilmember Elissa Silverman, who championed the creation of a public, mission-driven alternative to private student lending in the District. The bill establishes the District of Columbia Student Loan Authority as an independent part of the District government, overseen by a 7-member board, including 5 voting members appointed by the Mayor and approved by the Council, plus 2 ex-officio members. The Authority can provide new loans for accredited college or vocational training programs and refinance education debt for current D.C. residents. The bill improves loan terms in a way most residents have never had access to. The Authority may not charge application or origination fees. The first $5,000 of any loan will carry 0% interest, adjusted annually for inflation. Monthly payments are capped at 10% of a borrower’s discretionary income, keeping payments tied to what someone can afford. Repayment begins 6 months after completion or withdrawal and may extend up to 30 years. Borrowers who complete 10 cumulative years of full-time public service work, including education sector roles, may be eligible for discharge of remaining loan balances, and qualifying hours may include paid leave and Family and Medical Leave Act time. This bill is about expanding opportunity, giving residents financial breathing room to learn, work, build businesses, and explore new industries without being weighed down by fast-growing interest or unexpected fees. The Authority must publish regular financial and activity reports, and a certified public accountant will audit its finances each year, sending those audits to the Mayor and Council. Loan servicing must remain in-house and may not be outsourced, ensuring accountability stays public. I look forward to working with my colleagues, advocates, and borrowers to move this proposal through the legislative process.

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___________________________ ___________________________ 1 Councilmember Brooke Pinto Councilmember Janeese Lewis George 2 3 4 ___________________________ ___________________________ 5 Councilmember Brianne K. Nadeau Councilmember Robert C. White, Jr. 6 7 A BILL 8 9 10 _______ 11 12 13 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 14 15 __________________ 16 17 18 To establish a finance authority in the District of Columbia to provide new student loans and 19 refinance existing student loans. 20 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 21 act may be cited as the “DC Student Loan Authority Establishment Act of 2026”. 22 Sec. 2. Definitions. 23 For the purposes of this act the term: 24 (1) “Authority” means the District of Columbia Student Loan Authority established by 25 section 3. 26 (2) “Board” means the executive board of the Authority. 27 (3) “Discretionary income” means the difference between a participant’s annual adjusted 28 gross income and 150% of the poverty guideline based on family size. 29 (4) “Loan” means money borrowed and evidenced by a loan agreement between the 30 Authority and a borrower, including any terms related to repayment, deferment, or interest. 31

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(5) “Loan agreement” means a contract between the participant and the Authority which 32 specifies the promises made by each party. The Loan Agreement shall reflect the total amount 33 borrowed by the Participant as well as the terms of Repayment. 34 (6) “Interest rate” means the money paid regularly for the use of money lent or for 35 delaying repayment of the debt. The Interest Rate shall be specified in the Loan Agreement. 36 (7) “Qualifying program” means any regionally accredited post-secondary educational or 37 vocational training program. 38 (8) “Participant” means any person who executes a Loan Agreement with the Authority 39 pursuant to the requirement of the financial assistance. 40 Sec. 3. Authority establishment and purpose. 41 (a)(1) There is established, as an independent authority of the District government, the 42 District of Columbia Student Loan Authority. The Authority shall be a corporate body, created to 43 effectuate the purposes of this act, and with a separate legal existence within the District 44 government. 45 (b) The purpose of the Authority shall be to: 46 (1) Provide new student loans and refinance existing student loans to individuals 47 residing in the District at the time of application and to students of post-secondary educational 48 programs located in the District of Columbia; and 49 (2) Engage in any other activities that may help students attending higher 50 education institutions. 51 Sec. 4. Executive board establishment and membership. 52 (a) There is established an executive board to govern the Authority, which shall consist of 53 5 voting members appointed by the Mayor, with the advice and consent of the Council, pursuant 54

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to section 2(f) of the Confirmation Act of 1978, effective March 3, 1979 (D.C. Law 2-141; D.C. 55 Official Code § 1- 523.01(f)), and 2 ex-officio members, all of whom shall be residents of the 56 District. 57 (b) The voting members shall include: 58 (A) A representative of the Consortium of Universities of the Washington 59 Metropolitan Area or a similar organization; 60 (B) A representative from an education-focused advocacy organization in the 61 District of Columbia; 62 (C) A representative from a consumer protection-focused advocacy organization 63 in the District of Columbia; and 64 (D) Two District of Columbia residents with student loans. 65 (c) The 2 ex-officio members shall include: 66 (A) The Chief Financial Officer; and 67 (B) The Student Loan Ombudsman, established by section 7a of the Department 68 of Insurance and Securities Regulation Establishment Act of 1996, effective February 18, 2017 69 (D.C. law 21-214; D.C. Official Code § 31-106.01). 70 (d) Voting members serve 4 year terms; except, that for the initial appointments shall be 71 for a term of 2 years, one shall be for a term of 3 years, and 2 shall be for a term of 4 years. 72 (e)(1) Within 90 days after a vacancy occurs or a term expires, the Mayor shall nominate 73 an individual to fill the vacancy. 74 (2) A member of the executive board may continue to serve until his or her 75 successor has been approved by the Council and appointed by the Mayor. 76

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(3) Vacancies for an unexpired term shall be filled by Mayoral appointment in the 77 same manner of the original appointment. 78 (f)(1) The Mayor or the board may remove a member of the board for inefficiency, 79 neglect of duty, or misconduct in office, after giving the member a copy of the charges against 80 the member and an opportunity to be heard in person or by counsel in their defense upon not less 81 than 10 days’ notice. 82 (2) Removal of a member by action of the board shall require an affirmative vote 83 of a majority of the voting members. 84 (3) If a member is removed by the board, the board shall promptly notify the 85 Mayor and the Council of the action. 86 (g) Members shall be eligible for reappointment. 87 (h) The board shall elect a chairperson every 2 years. 88 (i) The Board shall be subject to the Open Meetings Act, effective March 31, 2011 (D.C. 89 Law 18-350; D.C. Official Code § 2-571 et seq.). 90 Sec. 5. Powers and duties of executive board. 91 (a) The board may enter into memoranda of understanding or information sharing 92 agreements with federal agencies, District agencies, or agencies of other states, to carry out the 93 provisions of this act; provided, that such agreements include adequate protections with respect 94 to the confidentiality of information and comply with all District and federal laws and 95 regulations. 96 (b) The board shall have procurement authority independent of the Office of Contracting 97 and Procurement and shall not be subject to the Procurement Practices Reform Act of 2010, 98

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effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code § 2-352.01 et seq.) (“PPRA”); 99 except, that section 202 of the PPRA (D.C. Official Code § 2-352.02) shall apply. 100 (c)(1) The board, pursuant to Title I of the District of Columbia Administrative Procedure 101 Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), shall issue 102 rules to implement the provisions of this act. 103 (2) The board shall submit all proposed rules to the Council for a 30-day period of 104 review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council 105 does not approve or disapprove the proposed rules, in whole or in part, by resolution, within this 106 30-day review period, the proposed rules shall be deemed approved. 107 Sec. 6. Executive director and Authority staff. 108 (a) The board shall hire an executive director within 60 days of a majority of executive 109 board members being confirmed to organize, administer, and manage the operations of the 110 Authority. 111 (b) The executive director shall not be an employee in the career service and shall serve 112 at the pleasure of the executive board. 113 (c) The executive director shall be a District resident or shall become a resident of the 114 District within 180 days of the date of hire. 115 (d) The board shall determine the appropriate compensation for the executive director; 116 provided, that the executive director's compensation shall not exceed the maximum allowable 117 salary in the District’s Excepted Service salary schedule. 118 (e) Under the direction of the board, the executive director shall; 119 (1) Be the chief administrative officer of the Authority; 120 (2) Direct, administer, and manage the operations of the Authority; and 121

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(3) Perform all duties necessary to comply with and carry out the provisions of 122 this act, consistent with other federal and District laws and regulations. 123 (f) The executive director may employ, retain, and set compensation for staff for the 124 Authority, provided, that employee compensation shall not exceed the maximum allowable 125 salary in the District of Columbia Excepted Service salary schedule. 126 (g) The Board shall exercise personnel authority over the Authority. 127 Sec. 7. Conflicts of interest. 128 (a) No member of the board, other than the member of the board appointed as a 129 representative of the Consortium of Universities of the Washington Metropolitan Area, or staff 130 of the Authority, shall, with regards to an institution of higher education, a financial institution 131 invested in student loans, or a private student loan organization: 132 (1) Be an employee; 133 (2) Be a Director or Officer; 134 (3) Be a representative; 135 (4) Be a consultant or employee of a consultant; or 136 (5) Have any other affiliation that establishes a fiduciary, principal, or agent 137 relationship with the institution of higher education, a financial institution invested in student 138 loans, or a private student loan organization. 139 (b) No member of the executive board may use any of the Authority’s programs for 140 which they have participated in setting the rules or limitations. 141 (c) No member of the executive board shall make, participate in making, or in any way 142 attempt to use his or her board position to influence the making of a decision that the board 143

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members know, or has reason to know, will have a reasonably foreseeable material financial 144 effect, distinguishable from its effect on the public generally, on: 145 (1) The board member or on a member of the board member's immediate family; 146 (2) Any source of income, other than gifts and loans by a commercial lending 147 institution in the regular course of business on terms available to the public without regard to 148 official status, aggregating $250 or more in value provided to, received by, or promised to the 149 board member within 12 months prior to the time when the decision is made; and 150 (3) Any business entity in which the member is a director, officer, partner, trustee, 151 or employee, or holds any position of management. 152 Sec. 8. Loan programs. 153 (a)(1) The Authority shall provide financial assistance to eligible applicants seeking to 154 enroll in a qualifying program in furtherance of an educational or vocational goal. 155 (2) The financial assistance shall be made in the form of deferred payment loans 156 secured by a loan agreement that is executed by the applicant and the Authority. The amount of 157 the financial assistance shall be limited to the estimated cost of attendance. 158 (3) To be eligible, the applicant shall be: 159 (A) A resident of the District enrolled in a post-secondary educational or 160 vocational program; 161 (B) A student: 162 (i) Who is an individual who claims a student as a dependent, a 163 resident of the District, and 164 (ii) Who is enrolled in a qualifying post-secondary educational or 165 vocational training program, or 166

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(C) A student who is not a resident of the District but who is enrolled in a 167 qualifying post-secondary educational or vocational program that is based in the District of 168 Columbia. 169 (b)(1) The Authority shall provide financial assistance to eligible applicants seeking to 170 refinance existing debt incurred for the purpose of seeking a post-secondary educational, 171 vocational, advanced, or professional education. 172 (2) The financial assistance shall be made in the form of deferred payment loans 173 secured by a Loan Agreement that is executed by the applicant and the Authority. 174 (3) An applicant shall be eligible for the financial assistance under this subsection 175 if the applicant is: 176 (A) A resident of the District of Columbia; and 177 (B) Provides evidence that the existing debt is the result of previous 178 enrollment in a qualifying program. 179 (c)(1) The Authority shall provide financial assistance to eligible applicants who are the 180 parent or other caretaker of a student who seeks to enroll or is enrolled in a qualifying 181 postsecondary educational or vocational program and who is claimed as a dependent by the 182 applicant for federal income tax purposes. 183 (2) The financial assistance shall be made in the form of deferred payment loans 184 secured by a loan agreement executed by the applicant and the Authority. 185 (3) An applicant shall be eligible for financial assistance under this subsection if 186 the applicant: 187 (A) Is a current resident of the District; and 188

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(B) Provides documentation demonstrating that the student is claimed as 189 the applicant’s dependent for federal income tax purposes. 190 (d)(1) The Authority shall provide financial assistance to eligible participants seeking to 191 enroll in a postgraduate degree program. 192 (2) The financial assistance shall be made in the form of deferred payment loans 193 secured by a Loan Agreement that is executed by the Participant and the Authority. 194 (3) An applicant shall be eligible for the assistance under this subsection if the 195 applicant is: 196 (A) A resident of the District of Columbia; 197 (B) Enrolled in a qualifying advanced or professional degree program, or 198 (C) A student who is not a resident of the District of Columbia but who is 199 enrolled in a qualifying advanced or professional degree program that originates in the District of 200 Columbia. 201 Sec. 9. Loan terms. 202 Financial assistance provided pursuant to section 8 shall be subject to the following 203 conditions: 204 (1) The Authority shall not charge any applicant or participant origination, 205 application, or other associated fees for applying for or receiving a loan. 206 (2)(A) The first $5,000 of any loan made shall not be subject to interest charges. 207 (B) For any loan amount in excess of $5,000, the Board shall establish an 208 interest rate by rule, provided that the rate shall not exceed a maximum rate established by the 209 Board. 210

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(C) Beginning October 1 of the first fiscal year following the applicable 211 date of this act, and annually thereafter, the $5,000 amount specified in subparagraph (A) of this 212 paragraph shall be adjusted by the Authority to reflect any increase in the Consumer Price Index 213 for All Urban Consumers (CPI-U), or a successor index, as published by the United States 214 Bureau of Labor Statistics. 215 (3)(A) Repayment of a loan shall be deferred, and no interest shall accrue, during 216 any period in which the student for whom the loan was made is enrolled in a qualifying 217 postsecondary educational or vocational program. 218 (B) Repayment shall begin 6 months after the student completes or 219 withdraws from the qualifying program. 220 (C) Repayment shall be made on a scheduled monthly basis for a term not 221 to exceed 360 months. 222 (D) Monthly repayment amounts shall not exceed 10% of the participant’s 223 annual discretionary income, divided by 12, as determined by the Authority by rule. 224 (4)(A) A participant who has entered repayment under a loan agreement may have 225 any outstanding loan balance discharged after completing 10 cumulative years of full-time 226 employment in public service. 227 (B) To qualify as public service employment, the employment shall: 228 (1) Be with any local, state, or federal government entity or non-229 profit organization; 230 (ii) Be for 10 cumulative years; provided, that the employment 231 may be with more than one qualifying employer, must begin upon completion of or withdrawal 232 from a qualifying program, and do not have to be consecutive; and 233

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(iii) May include work performed either as an employee or 234 contractor for the qualifying employer. 235 (C) For purposes of this paragraph, the term “full time” means: 236 (i) A minimum average of 30 hours per week during the period 237 being certified; 238 (ii) A minimum of 30 hours per week throughout a contractual or 239 employment period of at least 8 months in a 12-month period, such as elementary and secondary 240 school teachers and professors and instructors, in higher education, in which case the participant 241 is deemed to have worked full time; or 242 (iii) The equivalent of 30 hours per week as determined by 243 multiplying each credit or contact hour taught per week by at least 3.35 in non-tenure track 244 employment at an institution of higher education. 245 (D) Routine paid vacation or paid leave time hours provided by the 246 employer, and leave taken under the Family and Medical Leave Act of 1993 (29 U.S.C. 247 2612(a)(1)) shall count towards the hours for determining full time status. 248 Sec. 10. Reports. 249 (1) The Authority shall release an annual report, detailing the Authority’s 250 activities during the year, including: 251 (A) Loans given, broken down by type of loan and length of term; 252 (B) Amount and number of loans in repayment status; and 253 (C) Amount and number of loans forgiven. 254 (2) The Authority shall also issue quarterly financial reports. 255 (3) All reports published by the Authority must be available on its website 256

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(4) The Authority shall contract at least once each year with an independent 257 certified public accountant to audit the books and accounts of the Authority. The Authority shall 258 transmit the audit to the Mayor and Council within 10 days of receipt. 259 Sec. 11. Outsourcing. 260 (a) The Authority may not contract out the servicing of student loans. 261 (b) The Authority may contract out for supplies, technology, and advice necessary for the 262 servicing of the loans. 263 Sec. 12. Delegation of Council authority to issue revenue bonds, notes and other 264 obligations for Authority undertakings. 265 (a) The Council delegates to the Authority the authority of the Council under section 266 490(a)(6)(A) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 267 809; D.C. Official Code § 1-204.90(a)(6)(A)), to issue revenue bonds, notes, and other 268 obligations to borrow money to finance or assist in the financing of undertakings authorized by 269 this act. 270 (b) Bonds, notes, and other obligations issued under the provisions of this act shall not 271 constitute an obligation of the District and are payable solely from the revenues or assets of the 272 Authority. Each bond, note, or other obligation issued under this act shall contain on its face a 273 statement that the Authority is not obligated to pay principal or interest except from the revenues 274 or assets pledged and that neither the faith and credit nor the taxing power of the District is 275 pledged to the payment of the principal or interest on a bond, note, or other obligation. 276 (c) Assets and income of the Authority or of any entity established by the Authority shall 277 be exempt from District taxation. 278

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(d) Bonds and notes issued by the Authority and the interest there on shall be exempt 279 from District taxation except estate, inheritance, and gift taxes. 280 Sec. 13. Conforming amendments. 281 (a) Section 2(6F) of the Department of Insurance and Securities Regulation 282 Establishment Act of 1996, effective May 21, 1997 (D.C. Law 11-268; D.C. Official Code § 31-283 101(6F), is amended by striking the phrase “loan.” and inserting the phrase “loan, including the 284 District of Columbia Student Loan Authority established by section 3 of the Student Loan 285 Authority Establishment Act of 2026, as introduced on _______ (Bill 26-____).” in its place. 286 (b) Section 28-3901(e) of the District of Columbia Official Code is amended to read as 287 follows: 288 “(e)(1) Notwithstanding any other provision of this chapter, this chapter’s application to: 289 “(A) Landlord-tenant relations shall include the District of Columbia 290 Housing Authority's activities as a landlord; and 291 “(B) Consumer credit shall include District of Columbia Student Loan 292 Authority. 293 “(2) This chapter shall not be construed to otherwise apply to the District of 294 Columbia, its agencies or instrumentalities, or any employee thereof acting within the scope of 295 the employee's official duties. 296 Sec. 14. Fiscal impact statement. 297 The Council adopts the fiscal impact statement in the committee report as the fiscal 298 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 299 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 300 Sec. 15. Effective date. 301

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This act shall take effect following approval by the Mayor (or, in the event of veto by the 302 Mayor, action by the Council to override the veto) and a 30-day period of congressional review 303 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 304 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 305