“For many students, higher education is a pathway towards a successful career and a tool for them to better their lives,” Scherer said. “As the cost of college has continued to rise, so has student loan debt. Too many students who can’t afford a college education on their own aren’t made fully aware of the terms for loans they take out in order to afford their education.”
Scherer is sponsoring House Bill 2746 to create the Know Before You Owe Private Education Loan Act. The bill strives to provide students with information to make appropriate assessments of their student loan needs by requiring colleges to provide students with individualized information regarding their loan eligibility and federal financial assistance options. The bill will also require private lenders to receive confirmation from educational institutions on a student borrower’s attendance costs such as tuition, housing, and books. Additionally, the measure requires private lenders to provide quarterly loan statements to a borrower during the time a student is in college.
“The opportunity to go college shouldn’t lock people into crippling debt just to boost the profits of lenders seeking to take advantage of those who need financial assistance to complete their degree programs,” Scherer said. “Students, whether they attend a community college or university, shouldn’t have to make the choice between getting an education and facing a lifetime of debt or not getting an education at all.”