HB1138 LEGISLATION DETAILS Home | Issues | Legislation Details

HB1138
Qualified Education Loan Ombudsman, Office of the; established, report.

Office of the Qualified Education Loan Ombudsman. Establishes the Office of the Qualified Education Loan Ombudsman (the Office) within the State Council of Higher Education for Virginia. The Office';s duties include (i) receiving, reviewing, and attempting to resolve complaints from qualified education loan borrowers; (ii) compiling and analyzing data on such complaints; (iii) assisting qualified education loan borrowers to understand their rights and responsibilities under the terms of qualified education loans; (iv) providing information regarding the problems and concerns of qualified education loan borrowers; (v) analyzing and monitoring the development and implementation of applicable laws and policies; and (vi) disseminating information concerning the availability of the Office to assist qualified education loan borrowers and any other participant in qualified education loan lending, with qualified education loan servicing concerns. The Office is further required to establish and maintain a qualified education loan borrower education course by December 1, 2019.

Legislative Information System of Virginia HB1138 details.
Committee: Finance
Patron: Del. Marcia Price (D-Newport News)
Current Status: Reported
Legislative Reports:
DateDetails
February 28thPatron Comments:

Identical to Senator Howell';s bill.

 ;


Deletage Comments(Pro):

Howell: House has taken the contingency clause off of Howell';s bill, because it';s funded in both budgets, so her bill should be good to go.


Outcome:
Reported
Outcome Comments:

Has overwhelming support


February 5thPatron Comments:

Crushing burden of student debt, 18 year olds are asked to read and understand loan documents, do not understand the potential future impacts that can roll in after the grace period.

Establish a central place for borrowers to look for information and guidance, creates an educational course to help current borrowers with their financial security.

Dedicated funding in the governor’s budget to support the creation of the office of the ombudsman.


Public Comments (Pro):

Dept. Sec. of Education: Strongly support, recognize that it doesn’t address the issue of rising tuition costs but helps students nonetheless on the back end.

Beverly Covington, SCHEV: Support. Recent study identified the need for more information for borrowers to assist them in securing safe loans.

Virginia21: Support, personal account, graduated with 30,000 in loans from multiple sources. Loans was nearly reported as in default.

VEA: Support.


Deletage Comments(Pro):

Del. Yancey question: How does this bill ameliorate an issue which is not already being addressed- where is there a gap?

Response: Initial thought on that is that students in Virginia do not have a “one stop shop,” information will be gathered from federal and nonprofit sources.

Del. Yancey question: If I go to a loan originator, what information can I expect to receive from this institution?

Response: Can’t speak specifically, but in personal experience these definitions and pressures can lead to a high level of misinformation.


Outcome:
Reported and referred (include Committee below)
Outcome Comments:

Referred to Appropriations


Outcome:
  • Seeks to ameliorate crushing effects of debt for students by lessening misinformation when students sign onto loan programs.
  • Recent study from SCHEV indicated the need for better loan information for young students financing their educations. ;