FOR IMMEDIATE RELEASE
Contact: Emma Bittner
(972) 510-3395 | Emma.Bittner@younginvincibles.org
California Students and Advocates Vow to Continue Fight to Protect Students from Harmful Institutional Debt Collection Practices
On May 23rd, Assembly Bill 850 by Assemblymember Blanca Pacheco (D-Downey) – a groundbreaking piece of legislation aimed at protecting students from the educational barriers and harmful debt collection practices associated with institutional debt – was held in the Assembly Appropriations Committee. This bill, known as the “Increasing Institutional Debt Transparency and Protecting Students Act” would have established landmark protections for the millions of students in California’s higher education institutions.
In response, the co-sponsors of the bill, the University of California Student Association and the Campaign for California Borrowers’ Rights, issued the following statement:
“California lawmakers had the opportunity to lead the nation in addressing the institutional debt crisis and helping hundreds of thousands of college students re-enroll and make critical progress towards their degrees. Today, they failed to do that.
For too long, institutional debt – debt directly owed to a college or university campus – has locked Californians out of continuing their higher education and pushed degree completion out of reach while subjecting students to incredibly harmful debt collection tactics. AB 850 would have allowed students the chance to make progress toward their degree while getting back on track with their institutional debt, all while bringing in desperately needed funds for the state’s institutions of higher education. Given the dire state budget landscape, this bill presented policies that would have benefited students and institutions. But today, the status quo remains, and the more than 750,000 students with institutional debt will continue to be forced out of their higher education aspirations due to owing this debt, potentially see harm done to their credit scores, and lose out on their diplomas and any tax benefits, all while institutions lose out on revenue from the loss of these students and the state continues to see college enrollment and degree completion numbers decrease.
We are incredibly disappointed to see AB 850 held by the Assembly Appropriations Committee today. Our coalition, alongside California students, will not give up this fight. We thank Assemblymember Blanca Pacheco for championing this bill and for fighting for California students.”
About the UC Student Association
The University of California Student Association (UCSA) is the official voice of students from across the UC’s system of campuses. UCSA is a student-run, student-led organization with a Board of Directors composed of students elected or appointed by our member student governments. It is our mission to advocate on behalf of current and future students for the accessibility, affordability, and the quality of the University of California system. More information about UCSA is available at ucsa.org.
About the Campaign for California Borrowers’ Rights
The Campaign for California Borrowers’ Rights is a diverse coalition of organizations representing students, workers, consumers, older people, communities of color, veterans, and millions of other Californians affected by the student debt crisis. The Campaign is led by NextGen California, Student Borrower Protection Center, Student Debt Crisis Center, and Young Invincibles.
More information about the Campaign is available at https://www.californiaborrowers.org/.
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