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Panel approves bill to notify HESAA when students receive borrower-defense loan discharges
Summary
The committee released AB 4,881, which requires institutions of higher education to notify the Higher Education Student Assistance Authority when a student is approved for a federal borrower-defense loan discharge; committee amendments removed a reporting requirement to the Secretary of Higher Education.
The Assembly Higher Education Committee voted to release Assembly Bill 4,881 with committee amendments. The bill requires institutions of higher education and certain proprietary institutions to notify the Higher Education Student Assistance Authority (HESAA) if a formal or current student is approved for a federal borrower-defense loan discharge.
Committee amendments remove the provision that would have required institutions also to report the information to the Secretary of Higher Education, and they update the bill synopsis accordingly.
Assemblyman Miller described the measure as a tool to provide data that the state does not currently have on borrower-defense discharges. "We're giving an opportunity for students to know if they qualify for student loan discharge," he said, arguing the notification requirement will help the state and students make informed decisions. Members clarified that the bill is intended as a notification mechanism and not an endorsement of the federal borrower-defense process.
After brief discussion, a motion to release the bill was moved and seconded; the committee conducted a roll call and recorded unanimous 'Yes' votes from members present, and the bill was released with committee amendments.
