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Bill

Bill

S 1991

Relates to including information concerning repayment of outstanding loans in the standard financial aid award letter

2025 Regular Session Introduced by Robert Jackson and 3 co-sponsors

Bill S 1991 requires financial aid award letters to include clear loan repayment details, helping students and families understand their financial obligations better.

REFERRED TO BANKS
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Bill Summary · S 1991

Summary of Bill S 1991

Title

Relates to including information concerning repayment of outstanding loans in the standard financial aid award letter

Purpose and Intent

Bill S 1991 aims to enhance transparency in the financial aid process for students by requiring that standard financial aid award letters include detailed information about the repayment of outstanding loans. The intent is to provide students and their families with a clearer understanding of their financial obligations, thereby enabling them to make more informed decisions regarding their education financing.

Key Provisions

  • Inclusion of Loan Repayment Information: The bill mandates that all financial aid award letters issued by educational institutions must contain specific details about the repayment terms of any outstanding loans. This includes:

    • The total amount of loans taken out by the student.
    • Estimated monthly repayment amounts.
    • Interest rates applicable to the loans.
    • Any available options for deferment or forbearance.

  • Standardization of Award Letters: The bill seeks to standardize the format and content of financial aid award letters across institutions to ensure consistency and clarity for all students.

Who Would Be Affected

  • Students and Families: The primary beneficiaries of this bill are students and their families, who will receive clearer and more comprehensive information regarding their financial commitments.
  • Educational Institutions: Colleges and universities will need to adjust their financial aid award letter processes to comply with the new requirements.
  • Loan Servicers: Entities that manage student loans may also be impacted as they will need to ensure that their repayment information aligns with the new standards set forth by this legislation.

Legislative Timeline

  • Introduced: January 14, 2025
  • Passed Senate: February 24, 2025
  • Delivered to Assembly: February 24, 2025
  • Referred to Banks: February 24, 2025
  • Advanced to Third Reading: February 10, 2025
  • Second Report Calendar: February 5, 2025
  • First Report Calendar: February 4, 2025

Related Bills

  • A 8450 (prior-session)
  • S 4652 (prior-session)
  • S 664 (prior-session)
  • S 1137 (prior-session)

Conclusion

Bill S 1991 represents a significant step towards improving financial literacy among students by ensuring they have access to essential information regarding loan repayment. By mandating the inclusion of this information in financial aid award letters, the bill aims to empower students to make better financial decisions as they pursue their education.

Compiled from official sources — confirm details with the bill’s official record.

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