On August 15th, AB 1160 by Assemblymember Blanca Pacheco (D-Downey), a landmark piece of legislation aimed at protecting students from the educational barriers and harmful debt collection practices, was held in the Senate Appropriations Committee. This bill, known as the “Protecting Students from College Creditors Act” would have set in place groundbreaking protections for the millions of students in California’s higher education institutions. 

 

“We’re gratified that this important legislation was approved by the Assembly, but regret that it was held in Appropriations before it could be heard by the Senate,” said Assemblywoman Pacheco. “We hope that the Appropriations committee will look upon the bill with more favor next year.” 

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Institutional debt, or debt that a student owes directly to their school, is shadow debt that has often been ignored in the broader debate on the cost of going to college. The Protecting Students from College Creditors Act would have: 

• Reduced barriers to student access, persistence and degree completion by prohibiting colleges from barring a student from registering or re-enrolling in courses and withholding a degree simply because a student owes on an outstanding institutional debt. 

• Protected students from economic hardship by establishing barriers and guidelines for the placement of institutional debts with for-profit third-party debt collectors and protected students from tax return and benefit garnishment through the Interagency Intercept Collection (IIC) Program operated by the California Franchise Tax Board. 

• Provided much-needed transparency on the growth and impact of institutional debt by requiring consistent data collection and reporting. 

 

“Protecting California’s more than 750,000 college students who owe over $390 million in institutional debt is crucial. We remain committed to ensuring that these predominantly low-income students can continue their educational journey and graduate into the workforce. Higher education is one of the direct pathways to upward mobility, and at this moment, we are failing nearly a million students by leaving them on the sidelines, unable to complete their degrees. While we are disappointed by the outcome for AB 1160 this year, we will come back again next year and continue to fight for students burdened by institutional debt. 

 

We thank Assemblymember Blanca Pacheco for championing this bill and for fighting for California’s students.” 

 

The Campaign for California Borrowers Rights, University of California Student Association, California State University Student Association 

 

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 California State Student Association 

The California State Student Association (CSSA), also known as the Cal State Student Association, is a nonpartisan, nonprofit student organization founded by California State University (CSU) student body presidents in 1959. CSSA is led by, funded by, and represents the over 482,000 students of the CSU. CSSA is recognized by the CSU Board of Trustees and the California legislature as the official voice of CSU students. CSSA has long advocated for access to an affordable, accessible, and high-quality CSU education and works to ensure that the students are at the forefront of higher education policy in California. 

 

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, Young Invincibles, Student Debt Crisis Center, Student Borrower Protection Center, and Consumer Reports. 

 

More information about the Campaign is available at https://www.californiaborrowers.org/.​

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