Virginia Student Loan Refinancing Authority; refinancing loan guaranty program. Establishes the Virginia Student Loan Refinancing Authority (the Authority), to be governed by a 10-member board, for the purpose of developing and implementing a program by which the Authority may guarantee the obligations of an individual who incurred qualified education loan debt as a Virginia student at an institution of higher education in the Commonwealth under loans that refinance such education loan debt. The measure limits eligibility to individuals who have not received, and are not eligible to receive, relief under applicable federal student loan repayment or loan forgiveness programs. The Authority is authorized to issue bonds to finance its obligations under such loan guarantees.Legislative Information System of Virginia HB615 details.
|January 29th||Patron Comments:|
Virginian';s have over 30bb in student debt. Often have loan interest rates which mirror those of department store credit cards. Would esatblish loan authority to assist in refinancing, revenue from loans would make the Authority self sustaining. Borrowers have often done eveything we have asked of them
Public Comments (Pro):
Loan balance balloon when borrowers forced into forebearance. Borrowers often don';t know what options are available to them.
Landes: Students borrow about 1.5bb a year in Virginia, if there is a 10% default rate, state would be required to pay 7.5mm annually.
Price: This bill simply establishes infastructure to best determine policy decisions.
Poindexter: There are firms on the market that do exactly this.
Price: Very hard for most people to participate without additional costs.
Stolle: This group provides loans at a lower rate than in the market? So state underwrites those loans-- meaning the burden shifts to citizens.
Proce: Ability to get loans at lower rates is dependent on economic circumstances. Disparate numbers of defaults in minority communities.
Stolle moved to PBI.
Passed by Indefinitely
PBI';s on party lines.
Republicans on committee concerned about implications on budget.