New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S749

Introduced
1/11/22  

Caption

Requires institutions of higher education to send out annual student debt letters; requires students enrolled in public institutions of higher education to complete course on student loan debt repayment.

Impact

The legislation requires public institutions of higher education to provide specified financial information to students at the beginning of each academic semester. By offering estimates of total debt and repayment options, the bill is designed to promote fiscal responsibility among students. Furthermore, the bill stipulates that each full-time undergraduate student with student loan debt must complete an online course or attend in-person counseling regarding debt repayment during their final semester, effectively making this a condition for graduation. This requirement is aimed at preparing students for the financial realities they will face post-graduation.

Summary

Senate Bill 749, known as the 'Know Before You Owe Student Loan Debt Act', aims to enhance student awareness regarding student debt by instituting mandatory communication from higher education institutions. The bill mandates that institutions send annual student debt letters to enrolled students, detailing their total loan amounts, estimates of total repayment obligations, and potential monthly repayment amounts. This direct communication is intended to ensure students understand their financial commitments and encourage better financial decision-making regarding their education funding.

Contention

Some points of contention surrounding SB 749 include debates over the effectiveness of mandatory financial literacy courses and the burdens placed on educational institutions. Critics may argue that while the bill promotes awareness, it does not address the underlying issue of student loan debt affordability and accessibility. Moreover, there may be concerns about the practical implementation of the required coursework and whether it adequately addresses the diverse needs of students from different financial backgrounds. Proponents view it as an essential step towards fostering responsible borrowing practices, while opponents advocate for broader reform of student loan programs themselves.

Companion Bills

No companion bills found.

Previously Filed As

NJ S3383

Requires tuition aid grant amounts to be equal for students enrolled in independent institutions of higher education and students enrolled in four-year public institutions of higher education.

NJ S690

Requires four-year public institutions of higher education to require undergraduate students to complete course on climate change.

NJ S1458

Requires four-year public institutions of higher education to provide on website certain information on online degree students and graduate degree students.

NJ A2349

Requires four-year public institutions of higher education to provide on website certain information on online degree students and graduate degree students.

NJ A4389

Requires public institutions of higher education to enroll certain students impacted by automation in job training courses without payment of tuition.

NJ SB879

Institutions of Higher Education - Dually Enrolled Students - Alterations

NJ HB725

Institutions of Higher Education - Dually Enrolled Students - Alterations

NJ SB478

Washington County - Institutions of Higher Education - Dually Enrolled Students

NJ HB1762

Prohibiting institutions of higher education from requiring students to live on campus.

NJ S833

Requires degree-seeking students enrolled in public institutions of higher education to receive instruction on American government and civic engagement.

Similar Bills

CA AB850

Institutional Debt Transparency Act.

NJ A2359

Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.

NJ S1480

Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.

CA AB2771

California Private Postsecondary Education Act of 2009.

NJ S1504

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

NJ A2133

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

TX HB5180

Relating to the issuance of a diploma to a student graduating from a public institution of higher education that has undergone a merger, acquisition, or name change.

CA AB1098

California Education Interagency Council.