SB 791: Student loan disclosure: cohort default and other rates.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-04-17
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. Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
Commencing with the 201819 academic year, this bill would require a postsecondary educational institution with current or former students receiving certain federal loans to collect specified information available from the United States Department of Education regarding its current and former student borrowers and to publish and make available annually the forbearance, deferment, delinquency, and official cohort default rate percentages, and specified definitions, for each campus on the page of its Internet Web site regarding student financial aid, and if applicable, as part of the School Performance Fact Sheet. The bill would require the failure of an institution to comply with the posting requirement to be punishable by warning or fine, as provided, and would require enforcement of that provision these provisions by the commission and commission, in conjunction with the Bureau for Private Postsecondary Education, as appropriate.
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. Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
Commencing with the 201819 academic year, this bill would require a postsecondary educational institution with current or former students receiving certain federal loans to collect specified information available from the United States Department of Education regarding its current and former student borrowers and to publish and make available annually the forbearance, deferment, delinquency, and official cohort default rate percentages, and specified definitions, for each campus on the page of its Internet Web site regarding student financial aid, and if applicable, as part of the School Performance Fact Sheet. The bill would require the failure of an institution to comply with the posting requirement to be punishable by warning or fine, as provided, and would require enforcement of that provision by the commission and in conjunction with the Bureau for Private Postsecondary Education, as appropriate.
Existing law, the Child Care and Development Services Act, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age. The act requires the Superintendent to implement a plan that establishes reasonable standards and assigned reimbursement rates for child care services, as provided. The act sets the standard reimbursement rate and provides for cost-of-living adjustments to that rate granted annually by the Legislature. Existing law requires, notwithstanding that provision, that the payment made to a child care facility is the same as the fee paid for the same service by families of nonsubsidized children, if the child care facility meets certain requirements.This bill would make nonsubstantive changes to the latter provision.Existing law, the Child Care and Development Services Act, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age. The act requires the Superintendent to implement a plan that establishes reasonable standards and assigned reimbursement rates for child care services, as provided. The act sets the standard reimbursement rate and provides for cost-of-living adjustments to that rate granted annually by the Legislature. Existing law requires, notwithstanding that provision, that the payment made to a child care facility is the same as the fee paid for the same service by families of nonsubsidized children, if the child care facility meets certain requirements.
This bill would make nonsubstantive changes to the latter provision.
(a)Commencing with the 201819 academic year, a postsecondary educational institution with current or former students receiving Federal Stafford Loans from the Federal Family Education Loan Program or Direct Stafford/Ford Loans from the William D. Ford Direct Loan Program shall do all of the following:
(1)Collect the forbearance, deferment, and official cohort default rate percentages from the electronic Cohort Default Rate packet provided by the United States Department of Education for its current and former student borrowers in the most recent cohort year.
(2)Collect the delinquency rate percentage from the Delinquent Borrower Report accessible through the United States Department of Educations National Student Loan Data System for its current and former student borrowers in the most recent cohort year.
(3)Publish and make available annually the forbearance, deferment, delinquency, and official cohort default rate percentages, and the definitions in subdivision (c), for each campus on the page of its Internet Web site regarding student financial aid, and if applicable, as part of the School Performance Fact Sheet required pursuant to Section 94910.
(b)(1)Failure to publish and make available annually the forbearance, deferment, delinquency, and official cohort default rate percentages as required by paragraph (3) of subdivision (a) shall be punishable in accordance with the following:(A)For the first violation, the offending institution shall receive a written warning.(B)For the second violation, the offending institution shall receive a fine of two hundred fifty dollars ($250).(C)For the third and subsequent violations, the offending institution shall receive a fine of five hundred dollars ($500).(2)(b)This subdivision section shall be enforced by the commission and commission, in conjunction with the Bureau of Private Postsecondary Education, as appropriate.
(c)For purposes of this section, the following terms have the following meanings:
(1)Default means the failure to make a student loan installment payment when due or to meet other terms of the promissory note when either failure persists for 240 days if the loan is repayable in monthly installments, 270 days if repayable in quarterly installments, or 330 days if repayable in less frequent installments.
(2)Deferment means the condition of a loan as to which an eligible borrower has entered into a period during which repayment of the principal and interest amount of the loan is temporarily delayed. Deferment eligibility is determined in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program under Section 685.204 of Title 34 of the Code of Federal Regulations.
(3)Delinquency means the condition of a loan payment as to which the borrower is past due on a the loan payment by a minimum of 31 days and a maximum of 239 days, 269 days, or 329 days, as applicable.
(4)Direct Stafford/Ford Loans means any Federal Direct Subsidized Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/Direct loans.
(5)Federal Stafford Loan means any subsidized or unsubsidized Federal Stafford Loan.
(6)Forbearance means permitting the temporary suspension of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than previously scheduled. Forbearance eligibility is determined in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program under Section 685.205 of Title 34 of the Code of Federal Regulations.
(a)Commencing with the 201819 academic year, a postsecondary educational institution with current or former students receiving Federal Stafford Loans from the Federal Family Education Loan Program or Direct Stafford/Ford Loans from the William D. Ford Direct Loan Program shall do all of the following:
(1)Collect the forbearance, deferment, and official cohort default rate percentages from the electronic Cohort Default Rate packet provided by the United States Department of Education for its current and former student borrowers in the most recent cohort year.
(2)Collect the delinquency rate percentage from the Delinquent Borrower Report accessible through the United States Department of Educations National Student Loan Data System for its current and former student borrowers in the most recent cohort year.
(3)Publish and make available annually the forbearance, deferment, delinquency, and official cohort default rate percentages, and the definitions in subdivision (c), for each campus on the page of its Internet Web site regarding student financial aid, and if applicable, as part of the School Performance Fact Sheet required pursuant to Section 94910.
(b)(1)Failure to publish and make available annually the forbearance, deferment, delinquency, and official cohort default rate percentages as required by paragraph (3) of subdivision (a) shall be punishable in accordance with the following:
(A)For the first violation, the offending institution shall receive a written warning.
(B)For the second violation, the offending institution shall receive a fine of two hundred fifty dollars ($250).
(C)For the third and subsequent violations, the offending institution shall receive a fine of five hundred dollars ($500).
(2)This subdivision shall be enforced by the commission and in conjunction with the Bureau of Private Postsecondary Education, as appropriate.
(c)For purposes of this section, the following terms have the following meanings:
(1)Default means the failure to make a student loan installment payment when due or to meet other terms of the promissory note when either failure persists for 240 days if the loan is repayable in monthly installments, 270 days if repayable in quarterly installments, or 330 days if repayable in less frequent installments.
(2)Deferment means an eligible borrower has entered into a period during which repayment of the principal and interest amount of the loan is temporarily delayed. Deferment eligibility is determined in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program under Section 685.204 of Title 34 of the Code of Federal Regulations.
(3)Delinquency means the borrower is past due on a loan payment by a minimum of 31 days and a maximum of 239 days, 269 days, or 329 days, as applicable.
(4)Direct Stafford/Ford Loans means any Federal Direct Subsidized Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/Direct loans.
(5)Federal Stafford Loan means any subsidized or unsubsidized Federal Stafford Loan.
(6)Forbearance means permitting the temporary suspension of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than previously scheduled. Forbearance eligibility is determined in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program under Section 685.205 of Title 34 of the Code of Federal Regulations.
SECTION 1.Section 8266.5 of the Education Code is amended to read:8266.5.(a)Notwithstanding Section 8265, a payment made to a child care facility shall be the same as the fee paid for the same service by families of nonsubsidized children, if the child care facility meets all of the following requirements:(1)The facility has authorization for payments from an alternative payment program or a county welfare department.(2)The facility is operating under licensing standards for child day care facilities pursuant to Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code and Title 22 of the California Code of Regulations.(3)The facility has less than a majority of subsidized children enrolled in the facility.(b)An alternative payment system or county welfare department shall provide documentation that subsidized children, as necessary and appropriate, shall receive supportive services through county welfare departments, resource and referral programs, other existing community resources, or all of them.(a)Notwithstanding the provisions of Section 8265, the a payment made to a child care facility (a) with shall be the same as the fee paid for the same service by families of nonsubsidized children, if the child care facility meets all of the following requirements:
(1)The facility has authorization for payments from an alternative payment program or a county welfare department, (b) department.
(2)The facility is operating under licensing standards for child day care facilities specified by Sections 1500 et seq. pursuant to Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code and by Title 22 of the California Administrative Code, and (c) with Code of Regulations.
(3)The facility has less than a majority of subsidized children enrolled in the facility, shall be the same as the fee paid for the same service by families of nonsubsidized children. facility.
Each
(b)An alternative payment system or county welfare department shall provide documentation that subsidized children, as necessary and appropriate, shall receive supportive services through county welfare departments, resource and referral programs, other existing community resources, or all of them.
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Date
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Status
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|---|---|
| Apr 19, 2017 | April 19 set for first hearing canceled at the request of author. |
| Feb 1, 2018 | Returned to Secretary of Senate pursuant to Joint Rule 56. |
| Apr 17, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED. |
| Apr 13, 2017 | April 19 set for first hearing canceled at the request of author. |
| Apr 7, 2017 | Set for hearing April 19. |
| Apr 5, 2017 | Re-referred to Coms. on ED. and B., P. & E.D. |
| Mar 27, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 9, 2017 | Referred to Com. on RLS. |
| Feb 21, 2017 | From printer. May be acted upon on or after March 23. |
| Feb 17, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Bill Author
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