The new law, which took effect on July 1, applies only to Federal loans and requires Florida colleges and universities to provide annual reports to students. The reports must include the amount of loan borrowed, anticipated total loan, and monthly payments.
The national student debt has grown to a whopping $1.4 trillion. According to Senator Dorothy Hukill, R-Port Orange, the mounting debt is reaching a “critical mass.” Hukill compares the new law’s requirements with the type of information and documents individuals receive when purchasing a vehicle.
Troy Miller, the associate director of research and policy for the Florida College Access Network, which pushes for more Floridians to earn post-secondary degrees and credentials added,
“If we’re simply providing information about student loans that have been taken out, I would say that’s certainly helpful,” he said. “More beneficial would be providing financial literacy to students who need it the most.”
Some students say information about their total actual debt is hard to find or confusing.
Throughout the past several years, student debt has gained national attention. Education Secretary Betsy DeVos said she plans to rewrite Obama-era rules intended to protect student-loan borrowers, notably at for-profit schools.
In a statement, DeVos said that her first priority is protecting students, but the “muddled process that’s unfair to students and schools, puts taxpayers on the hook for significant cost.”
18 states along with the District of Columbia, but not Florida, are suing DeVos over the suspension of the student debt rules, which were supposed to have taken effect July 1, saying she delayed them without input from the public.
Colleges and universities appear to agree with the purpose behind government officials trying to rewrite portions of procedures surrounding Federal loans for higher education. But the question of educational institutions’ new requirements and obligations remain a point of argument.
Colleges, Universities, State Lawmakers and students all concur that better, more detailed information would generally serve to help tackle the nation’s massive mountain of student debt.