AB 1020: Student loans: financial education for students regarding loans.

Existing law establishes the University of California, under the administration of the Regents of the University of California, the California State University, under the administration of the Trustees of the California State University, the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions as the segments of postsecondary education in this state.

The California Finance Lenders Law generally provides for the licensure and regulation of persons who are engaged in the business of making consumer or commercial loans by the Commissioner of Business Oversight, as specified, and makes a willful violation of its provisions a crime.

This bill would express findings and declarations of the Legislature relating to student loans. The bill would require, in addition to any information required to be provided under the California Finance Lenders Law, that a lender, before entering into a loan agreement for purposes of financing the costs of a students postsecondary education, disclose the students options for financing his or her postsecondary education, the students repayment options, and any other information relevant to the proposed loan agreement that is reasonably requested by the student.