Providing for student loan debt data collection and report, for procedures for student loans, for disclosure of higher education costs, for a student loan ombudsman, for higher education assistance by employers, for duties of the Department of Education, Department of Banking and Securities and Department of Revenue; establishing the Student Loan Refinancing Program; authorizing the Pennsylvania Higher Education Assistance Agency to issue bonds to fund the Student Loan Refinancing Program; establishing the Student Loan Refinancing Fund; providing for student loan debt tax credit, for application for tax credit, for taxpayer eligibility, for carryover and carryback, for outreach and marketing, for guidelines, for employer incentive for higher education assistance tax credit, for application for tax credits and for carryover, carryback and assignment of tax credits; and imposing penalties.
Impact
If enacted, SB30 would have a significant effect on state laws concerning student loan management and financial education. It establishes formal procedures for the collection of student loan data, aims to improve the duties of various departments such as the Department of Education, and introduces a tax credit system for borrowers. These measures would influence both individuals with existing student debt and the higher education institutions that play a role in loan origination and servicing. The bill also seeks to empower employers by providing incentives for them to assist employees with higher education expenses.
Summary
Senate Bill 30 (SB30) aims to address the growing issue of student loan debt by establishing a series of initiatives geared toward financial relief and improved transparency regarding higher education costs. The bill proposes the creation of a Student Loan Refinancing Program that would allow borrowers to refinance their existing loans under potentially more favorable terms. This program is intended to be funded through the issuance of bonds by the Pennsylvania Higher Education Assistance Agency, which is tasked with managing the program and overseeing related functions such as providing necessary disclosures of higher education costs and regulating the student loan industry.
Sentiment
The sentiment regarding SB30 appears largely positive among advocates for student debt reform and financial transparency. Proponents believe that the Student Loan Refinancing Program could alleviate some of the financial pressures experienced by borrowers, particularly in a climate where student debt continues to rise. However, there are concerns voiced by some stakeholders regarding the adequacy of oversight and the potential for misuse of the refinancing program. Critics worry about how effective the proposed solutions will be in addressing the complexities of student debt challenges in practice.
Contention
Although SB30 is presented as a proactive bill addressing critical issues of educational financing, some points of contention exist. Detractors question whether the financial provisions, particularly regarding the issuance of bonds and tax credits, will be sufficient to make a meaningful impact on the evolving landscape of student loan borrowing. Additionally, debates may arise around the scope of government involvement in regulating student loans and the effectiveness of proposed measures, which could lead to disagreements about the best path forward for comprehensive debt relief solutions.
Allows gross income tax deduction for employees for amounts paid by employers for certain educational assistance programs for employees and for employees' student loans.
Allows gross income tax deduction for employees for amounts paid by employers for certain educational assistance programs for employees and for employee's student loans.
Allows gross income tax deduction for employees for amounts paid by employers for certain educational assistance programs for employees and for employee's student loans.
Allows gross income tax deduction for employees for amounts paid by employers for certain educational assistance programs for employees and for employee's student loans.
Allows gross income tax deduction for employees for amounts paid by employers for certain educational assistance programs for employees and for employee's student loans.
Establishing the Mental Health Professional Student Loan Forgiveness Program; imposing powers and duties on the Pennsylvania Higher Education Assistance Agency; and making an appropriation.
Providing for Delayed Payment Plan Program; establishing the Delayed Payment Plan Program Fund; and imposing duties on the Pennsylvania Higher Education Assistance Agency.
In the State System of Higher Education, further providing for definitions and providing for Grow Pennsylvania Merit Scholarship Program; providing for institutions of higher education, for Grow Pennsylvania Scholarship Grant Program and for intercollegiate athletics; in ready-to-succeed scholarship, further providing for agency; and making a repeal.
In transfers of credits between institutions of higher education, further providing for definitions and for duties of public institutions of higher education, providing for guaranteed admission, for reports to General Assembly and for dispute resolution and further providing for Transfer and Articulation Oversight Committee, for duties of department and for applicability; in higher education accountability and transparency, further providing for definitions and providing for student fee transparency; and providing for institutions of higher education and Dual Credit Innovation and Equity Grant Program.
In preliminary provisions, providing for student data privacy and protection; imposing duties on the Department of Education; and providing for penalties.
In preliminary provisions, further providing for definitions; in pupils and attendance, providing for educational oversight for students in facilities, further providing for possession of weapons prohibited and providing for school stability for certain students; in safe schools, further providing for definitions and for reporting and establishing the School-Based Diversion Programs Fund; in school security, further providing for powers and duties and providing for limitations on proceedings and arrest; and, in school districts of the first class, repealing provisions relating to placement of certain adjudicated students.
In preliminary provisions, providing for student data privacy and protection; conferring powers and imposing duties on the Department of Education; and imposing penalties.