Pennsylvania Legislation Recap
General Assembly of the Commonwealth of Pennsylvania passed student debt letter legislation in October 2018. Institutions of higher education that receive Federal education loan information or other student loan information regarding a student enrolled at the institution must provide annually, no later than July 1 each year, to the student, specific indebtedness information.
Which schools must comply?
Institutions of Higher Education as defined in section 118 (c) of P.L. 30, Act No. 14 of 1949
- A community college operating under Article XIX-A.
- A university within the State System of Higher Education.
- The Pennsylvania State University.
- The University of Pittsburgh.
- Temple University.
- Lincoln University.
- Any other institution that is designated as “State-related” by the Commonwealth.
- Any accredited private or independent college or university. • Any private licensed school as defined in the act of December 15, 1986 (P.L.1585, No.174), known as the “Private Licensed Schools Act.”
What information must schools report in order to meet the requirements of the law?
The annual notification must include the following information for student loans that are disbursed by the institution of higher education and taken out by the student:
- An estimate of the total amount of Federal education loans or other student loans;
- An estimate of the total payoff amount of the Federal education loans or other student loans if the loans were to go into repayment as of the date of the annual notification under this subsection; and,
- The number of years used in determining the potential total payoff amount.
Are there any additional requirements or statements?
Yes. Schools must include the following information in their correspondence:
- Information on how the student can access online repayment calculators.
- A disclaimer that the estimated information regarding the total amount of loans, the total payoff of the loans and the number of years used in determining the total payoff of the loans pertains only to Federal loans disbursed at the institution that is providing the information or any loans disbursed directly from the institution.
- A link to a Federal online aid counseling tool and a repayment estimator that have been approved by the Department of Education in consultation with the Pennsylvania Higher Education Assistance Agency.
Schools may also include:
- A statement that any estimate or range provided is general in nature and not intended to be a guarantee or promise of an actual projected amount.
How should the information be provided to the student?
- An institution of higher education shall provide the information to students through first class mail, electronic mail or other communication protocol established by the institution of higher education.
Here's how to navigate it
Student debt letters are a great way to help you retain the students you've worked so hard to enroll. But for an already overworked staff, debt letter legislation can feel like just one more area requiring compliance. Our free downloadable resources can help you find your way!
