Bill: SB 5022 (HB 1057) — 2017
Providing information to students about education loans (Bailey, Rolfes)
Establishes the Washington student loan transparency act.
Requires students who are pursuing higher education in this state to receive periodic notifications about their student loan debt.
Requires the student achievement council, the workforce training and education coordinating board, or the department of licensing to develop a form for reporting compliance by certain institutions.
1ST SUBSTITUTE COMPARED TO ORIGINAL:
-Modifies the definition of education loan to student education loan and changes the definition to any loan solely for personal use to finance post secondary education and costs of attendance at an educational institution.
-Adds a reference to institutions of higher education as defined by RCW 28B.10.016 to the definition of educational institutions.
-Clarifies that the notification must be provided to an enrolled student who has applied for student financial aid.
-Makes the requirement that educational institutions must provide an educational loan notification to students who have applied for financial aid, subject to appropriations.
-Adds principal and interest to the estimated total payoff amount.
-Strikes principal and interest from the monthly repayment amount estimate.
-Clarifies that the percentage of the federal direct loan borrowing limit a student has reached should be the aggregate borrowing limit applicable to the student's program of study.
-Clarifies that information about the differences between private and federal student loans is consumer information.
Requires that the notification be provided to students in writing, in an electronic format, or in person.
-Adds that an educational institution does not incur liability, including actions under RCW 19.86 by the Attorney General, for good faith representations made in the notification.
-Changes the date for when the notification must be provided to students from January 1, 2018 to July 1, 2018.
-Changes when an educational institution must generate the notification for a student from a new financial aid package including loans to each time a financial aid package that includes a new or revised student education loan is offered to the student.
-Removes the Student Achievement Council’s role in coordinating the development of a form for the educational institutions to use to report compliance.
-Requires an organization representing the four year public colleges and universities, an organization representing the private non-profit institutions, the State Board for Community and Technical Colleges, the Workforce Training and Education Coordinating Board, and the Department of Licensing to develop a form to report compliance by July 1, 2018, subject to appropriations.
-Requires the organizations that will develop the form to report compliance to the Legislature.
Hearing Date: Monday, April 03, 2017 -- 1:30 pm
WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=5022&Year=2017 (opens a new browser tab)
|Financial Aid||Governor Signature||2017-04-03|