Wisconsin Student Debt Letter Legislation

Wisconsin Legislation Recap

Wisconsin passed student debt letter legislation in 2016, requiring post-secondary schools in Wisconsin that provide an educational program for which it awards an associate degree or higher to annually send, at the beginning of the academic year, cost of attendance and cumulative funding information to each enrolled student.

What information must schools report in order to meet the requirements of the law?

Whenever possible the notification should be sent by email (letters or other delivery methods are acceptable if the student can’t receive email). The notification should include, for each student loan obtained by the student, for which the student loan funds are distributed by the institution as part of the student’s financial aid package, all of the following information with respect to that loan:

1. The total amount of debt accrued under the loan to date.
2. The interest rate applicable to the loan.
3. Standard repayment terms for the type of loan.
4. The estimated monthly payment due under the loan when the repayment period commences.
5. The total projected amount of interest to be paid over the term of the loan.
6. The total projected amount, including both principal and interest, to be paid over the term of the loan For a student loan obtained from a private lender only to the extent that the institution of higher education has received this information from the private lender or loan servicer.
7. The estimated total cost of attendance for the academic year, including actual or estimated costs of tuition, fees, and room and board.
8. The cumulative amount of each of the following, stated separately, that the student receives through the institution as part of the student’s financial aid package:

1. 1. State grants.
   2. Federal grants.
   3. Institutional grants.

Are there any additional requirements or statements?

Yes, schools must present resources for students to learn more about student loans and identify other financial literacy sources. Also, schools must provide newly entering students information on financial literacy within the students’ first semester of enrollment.

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!