SB 5022 — Providing information to students about education loans.

S-1796.1SUBSTITUTEZ-0242.1SENATE SENATE BILL 5022State of Washington65th Legislature2017 Regular SessionBy Senate Ways & Means (originally sponsored by Senators Bailey, Rolfes, Liias, Keiser, Conway, Wellman, Hasegawa, Mullet, Frockt, and Kuderer;

by request of Attorney General)READGeneralPrefiled FIRST01/03/17. TIME 02/24/17.AN ACT Relating to providing information to students about education loans;

Read first time 01/09/17.

Referred to Committee on Higher Education.AN ACT Relating to providing information to students about education loans;

and creating new sections.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  The legislature finds and declares that students pursuing higher education benefit from periodic notification about the balance of their student education loan debt.

TheMany legislature recognizes the steps many higher education institutions in Washington have already taken steps to provide financial education and information to their students.

It is the intent of the legislature to ensure that all students pursuing higher education in Washington receive periodic notifications about their student education loan debt.NEW SECTION.  Sec. 2.  A new section is added to chapter 28B.10 RCW to read as follows:(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) "Educational"Education institution"loan" includesmeans any entityloan thatprimarily isfor anpersonal institutionuse ofto higherfinance education asor definedother inschool-related RCWexpenses 28B.10.016,that the institution has certified.(b) "Institution" includes any entity that is a degree-granting institution as defined in RCW 28B.85.010, a private vocational school as defined in RCW 28C.10.020, or school as defined in RCW 18.16.020.(b)18.16.020.(2) "StudentAn educationinstitution loan"that meansreceives anyeducation loan solelyinformation for personal use to finance postsecondary education and costs of attendance at an educationalenrolled institution.(2)student Subject to the availability of amounts appropriated for this specific purpose, an educational institution must provide to anthat enrolled student who has applied for student financial aid a notification including the following information about the student education loans the educational institution has certified:(a) An estimate, based on information available at the time the notification is provided, of the:(i) Total amount of student education loans taken out by the student;(ii) Potential total payoff amount of the student education loans incurred or a range of the total payoff amount,amount;(iii) includingMonthly principalrepayment andamounts interest;(iii)that Thea monthlysimilarly repaymentsituated amountborrower thatmay theincur, studentincluding mayprincipal incurand interest, for the amount of student education loans the student has taken out, based on the federal loan repayment plan borrowers are automatically enrolled in if they do not select an alternative repayment plan;

and(iv) Percentage of the aggregate federal direct loan borrowing limit applicable to the student's program of study the student has reachedreached; at the time the information is sent to the student;

and(b) ConsumerInformation information about the differences between private student loans and federal student loans, including the availability of income-based repayment plans and loan forgiveness programs for federal loans.(3) The notification provided under subsection (2) of this section must include a statement that the estimates and ranges provided are general in nature and not meant as a guarantee or promise of the actual projected amount.

It must also include a statement that a variety of repayment plans are available for federal student loans that may limit the monthly repayment amount based on income.(4) The notification must include information about how to access resources for student education loan borrowers provided by federal or state agencies, such as a student education loan debt hotline and web site or student education loan ombuds, federal student loan repayment calculator, or other available resources.(5) An educational institution maymust provide the notification required in subsection (2) of this section invia writing,email in an electronic format, or in person.(6)writing.(6) An educational institution does not incur liability,liability including for actions under chapter 19.86 RCW by the attorney general, for any good faith representations made under subsection (2) of this section.(7) EducationalInstitutions institutions must begin providing the notification required under subsection (2) of this section by JulyJanuary 1, 2018, each time a new financial aid package thatincluding includesloans a new or revised student education loan is offered to the student.(8) SubjectThe tostudent theachievement availabilitycouncil of amounts appropriated for this specific purpose, an organization representing the public four-year colleges and universities, an organization representing the private nonprofit institutions, the state board for community and technical colleges under chapter 28B.5028B.77 RCW, the workforce training and education coordinating board as defined in RCW 28C.18.020, andor the department of licensing under chapter 46.01 RCW, must develop a form for thereporting educational institutions to use to report compliance by JulyJanuary 1, 2018.(9)2018. Beginning December 1, 2019, and biannually thereafter until December 25, 2025, the organizations under subsection (8) of this section must submit a report in compliance with RCW 43.01.036 to the legislature that details how the educational institutions are in compliance with this section.NEW SECTION.  Sec. 3.  This act may be known and cited as the Washington student loan transparency act.--- END ---

Institutions must report compliance with the agency, as applicable, at least annually beginning January 1, 2019.(9) Beginning December 1, 2019, and biannually thereafter until December 25, 2025, the agencies identified under subsection (8) of this section must submit a report in compliance with RCW 43.01.036 to the legislature that details how the institutions are in compliance with this section.NEW SECTION.  Sec. 3.  This act may be known and cited as the Washington student loan transparency act.--- END ---