Virginia Student Loan Refinancing Authority; established, report. (SB52)

Introduced By

Sen. Janet Howell (D-Reston) with support from co-patrons Sen. Adam Ebbin (D-Alexandria), Sen. Mamie Locke (D-Hampton), and Sen. Jennifer Wexton (D-Leesburg)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Virginia Student Loan Refinancing Authority established. Establishes the Virginia Student Loan Refinancing Authority, to be governed by a 10-member board, for the purpose of developing and implementing a program by which each individual who incurred qualified education loan debt as a Virginia student at an institution of higher education in the Commonwealth and who is eligible, on the basis of criteria established by the Authority that are substantially similar to criteria used by private lenders in the Commonwealth to evaluate student eligibility for an unsecured personal loan at market rates, may receive a loan from the Authority to refinance all or part of his qualified education loans, as that term is defined in relevant federal law. Amends § 2.2-2905, § 2.2-3705.4, § 2.2-3711, § 2.2-4006, of the Code of Virginia. Read the Bill »

Status

01/21/2016: Awaiting a Vote in the Education and Health Committee

History

DateAction
12/16/2015Prefiled and ordered printed; offered 01/13/16 16100703D
12/16/2015Referred to Committee on Education and Health
01/21/2016Assigned Education sub: Higher Education
01/28/2016Continued to 2017 in Education and Health (13-Y 0-N) (see vote tally)

Duplicate Bills

The following bills are identical to this one: HB400.

Comments

WM writes:

This would be a great way to help students who are just starting to make their way in the world. We strongly support this bill! Please consider signing our petition in favor of it: http://tinyurl.com/VirginiaStudents

Kathryn Murphy-Judy writes:

As a mother watching her daughter struggle to pay off heavy school loans and not being able to enter into the economic mainstream of our country and as an educator who sees higher tuition, fewer assistance dollars, and fewer decent paying jobs for those I teach, I am most concerned. We must do something to ease the burden on the next generation: they are our future. Let us not cripple them with debt.

Marion writes:

!. 4 year College Public Education should be free or loans should be prorated or "paid back" in credit for:
1. Public or Private Healthcare of 8 year duration
2. Military Service (ANG, Reserve or Active) of 6 years duration
3. Educators who work in public schools for 8 years or rural public schools for 4 years of work
4. Police or Firemen who subsequently serve for 6 years
5. Other Federal, State or County work for 10 years

B. 2 Year Public Community Colleges and Public Trade Schools should be free for the above listed categories as well as the following:
1. Training for state/county labor shortage areas as identified in a 5 year review/census of labor needs and 4 years of Public or Private work in the labor shortage skill and geographic area
2. New technology implementation for public facility and infrastructure support and subsequent Public service work for 4 years.
3. Federal or State Service employment of four years
4. Nonprofit work supporting public programs of six years duration

Ruth Hall writes:

What about a person who becomes disabled before completing their education? Where is the concern for them regarding paying back student loans when their only source of income is social security disability? My daughter has a rare disease (as defined by the NIH) that struck her in her early 30's. She is unable to work, but her social security disability check is garnished to pay her outstanding student loans. Already living in poverty with an income of $1000 a month, losing $150 a month to student loans affects her ability to provide for herself. Student loans never go away and she will never be able to finish college or return to earning a living due to this rare disease.

Michele writes:

"may receive a loan from the Authority to refinance all or part of his qualified education loans, as that term is defined in relevant federal law.".... a loan to help with a loan? How will this assist borrowers in getting out of the debt cycle or encourage others to gain a higher education?

Ken Blakely writes:

Michele above is exactly correct. The answer to this (very important) issue is *NOT* to have the government refinance the loans and thus make the loan a government asset. The answer is to lower tuition. This proposal is NOT the way to go.