Bill that aims to cut student debt heads to full Senate

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Published: Friday, 13 March 2015 21:21

INDIANAPOLIS – A bill to make students more aware of the debt they’re amassing to pay for college passed the Senate Education Committee unanimously Wednesday and now heads to the full Senate.

House Bill 1042 requires that public colleges provide students with an annual report that details a total loan amount estimate, an estimate of interest rates that will accrue, an estimate of monthly repayment amounts, and the percentage of the borrowing limit the student has reached.

Indiana University currently has a program that provides students with annual letters detailing the longer-term consequences of their borrowing and the school has credited this relatively new program to the less overall borrowing by students.

During the 2013-2014 school year, borrowing dropped $31 million drop across the IU system, a school official told the committee last week.

Other supporters also said borrowing should decrease once students understand the obligations of their loans,

The bill’s author, Rep. Casey Cox, R-Fort Wayne, said that the legislation is a best practice that could be a model for the rest of the country.

HB 1042 already passed the House, if it passes the Senate without amendments, it will head to Gov. Mike Pence to be signed into law.

Article writer Erika Brock is a reporter for TheStatehouseFile.com, a news website powered by Franklin College journalism students.