HJ75: Institutional student loans; SCHEV to study payment structures.

HOUSE JOINT RESOLUTION NO. 75

Offered January 10, 2018
Prefiled January 9, 2018
Requesting the State Council of Higher Education for Virginia to study alternative payment structures and collection methods for delinquent payments on student tuition charges at public institutions of higher education. Report.
Patron-- Hurst

Committee Referral Pending

WHEREAS, delinquent payments on student tuition charges at public institutions of higher education are subject to the provisions of the Virginia Debt Collection Act (§ 2.2-4800 et seq.); and

WHEREAS, many students are unduly burdened by the provisions of the Virginia Debt Collection Act relating to interest, administrative charges, and late penalty fees for such delinquent payments; and

WHEREAS, it is imperative to explore alternative payment structures and collection methods for such delinquent payments to provide relief to students; now, therefore, be it

RESOLVED by the House of Delegates, the Senate concurring, That the State Council of Higher Education for Virginia be requested to study alternative payment structures and collection methods for delinquent payments on student tuition charges at public institutions of higher education.

In conducting its study, the State Council of Higher Education for Virginia shall consider and make recommendations on the possibility of:

1. Providing for interest-free or reduced interest repayment of delinquent student tuition charges;

2. Requiring each public institution of higher education to collect delinquent payments on student tuition charges rather than referring such payments to a private collection agency;

3. Requiring each private collection agency that collects delinquent payments on student tuition charges to cap interest rates charged at the rate set forth in § 6.2-302 of the Code of Virginia; and

4. Exempting the collection of delinquent payments on student tuition charges from the provisions of the Virginia Debt Collection Act (§ 2.2-4800 et seq.) or amending the provisions of such Act to establish more lenient terms for the collection of such payments.

Technical assistance shall be provided to the State Council of Higher Education for Virginia by each public institution of higher education in the Commonwealth. All agencies of the Commonwealth shall provide assistance to the State Council of Higher Education for Virginia for this study, upon request.

The State Council of Higher Education for Virginia shall complete its meetings by November 30, 2018, and shall submit to the Governor and the General Assembly an executive summary and a report of its findings and recommendations for publication as a House or Senate document. The executive summary and report shall be submitted as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports no later than the first day of the 2019 Regular Session of the General Assembly and shall be posted on the General Assembly's website.