California AB 1160 Protecting Students from Creditor Colleges Act

The Protecting Students from Creditor Colleges Act: A Recorded Deep Dive for Higher Education Professionals

Missed the live webinar on the Protecting Students from Creditor Colleges Act? No worries! Access the full recording now on our website and gain insights from leading experts from ACA International, COHEAO, the California Collectors Association, and more.

Here's what you'll see:

Expanded Transcript Withholding: Learn how the Act broadens the scope of transcript and diploma withholding restrictions for student debt, protecting educational access.

Guaranteed Class Registration: Discover how the Act ensures continued education for students with debt by guaranteeing their right to register for classes.

Third-Party Debt Collection Ban: Understand the Act's prohibition on outsourcing debt collection to third-party agencies, promoting fairer debt management practices.

Expert Panel Discussion: Gain valuable insights from industry leaders as they delve into the Act's nuances and potential consequences for higher education institutions.

Access the recording and start exploring the Protecting Students from Creditor Colleges Act!

Context on AB 1160 - California Legislation

While AB 1160, the "Protecting Students from Creditor Colleges Act," aims to shield California students from aggressive debt collection practices, it has sparked debate around its potential impact on educational institutions.

For students, the bill promises:

Unimpeded access to education: No more blocked enrollment or withheld degrees due to unpaid institutional debt.

Freedom from predatory tactics: Third-party debt collectors and state tax offsets for student debt are prohibited.

Greater financial control: Students gain more autonomy in managing their debt without aggressive pressure.

For schools, concerns center around:

Financial viability: Some institutions, especially smaller ones, rely heavily on debt repayment for operational costs. Limiting collection options could strain their finances.

Administrative burden: New reporting requirements and compliance measures may create significant additional work for school staff.

Potential for abuse: The fear exists that some students might intentionally default on debts knowing aggressive collection is restricted.

Reduced flexibility in debt management: Schools may have fewer options to help students find manageable repayment solutions.

The future remains uncertain: While AB 1160 hasn't passed the Senate yet, its potential impact continues to be debated. Striking a balance between protecting students from predatory practices and ensuring the financial stability of educational institutions will be crucial as the bill progresses.

Stay informed:

Follow the bill's journey and engage in the conversation to ensure California finds a solution.

Get Involved

Schools have two options: submit their letter or sign on to the COHEAO group letter. We need to encourage schools to do it before Thursday.

CA Contingent,

We need your help to oppose AB1160, The Protecting Students from Creditor Colleges Act. This bill would expand the current transcript withholding prohibition on students who owe a debt, including diplomas and certificates. The bill would also restrict registration holds. The measure, as introduced, prohibited institutions from contracting with a third-party debt collection agency or selling debt to a collection agency to recover existing and future debt and restrict participation in the IIC. There is a hearing on Thursday, January 18th, and the Appropriations Committee needs to hear from you today.