BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  HR 26
                                                                  Page  1

          Date of Hearing:   May 6, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
            HR 26 (Williams and P�rez) - As Introduced:  September 3, 2013
           
          SUBJECT  :   Student loan forgiveness.

           SUMMARY  :  Expresses that the Assembly intends to support the  
          Public Service Loan Forgiveness (PSLF) Program and will seek  
          opportunities to promote policies that provide more loan  
          repayment options to graduates burdened by debt.   

           EXISTING LAW  :  Existing law establishes the Cal Grant and Middle  
          Class Scholarship programs to provide financial aid to students  
          attending California colleges and universities, to the extent  
          that students and institutions are eligible.

           FISCAL EFFECT  :  This resolution is non-fiscal.

           COMMENTS  :  According to the authors, this resolution celebrates  
          the importance of public service and its value to our society,  
          and expresses the Assembly's dedication to ensuring that the  
          desire to contribute to public service is not forgone because of  
          financial limitations brought about by student loan debt.  

          The United States Department of Education created the PSLF  
          Program in 2007 to offer full student loan forgiveness upon  
          fulfillment of a 10-year Repayment Plan or completion of 120  
          regular payments through the Direct Loan Program.  The Direct  
          Loan Program offers both Income-Based Repayment and  
          Income-Contingent Repayment options.  The authors note the  
          federal loan program incentivizes college attendance and  
          increases college affordability.  

          This resolution:

          1)Encourages public employers to take full advantage of the PSLF  
            Program; 

          2)Expresses Assembly intent to support the PSLF by offering  
            information to new employees; and, 

          3)Expresses Assembly intent to "seek opportunities to promote  
            policies that will provide more loan repayment options to  








                                                                  HR 26
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            graduates burdened by student loan debt, so that they can gain  
            meaningful employment that enhances their individual financial  
            stability as well as benefits the state as a whole."

           Related legislation  .  AB 2377 (P�rez) was approved by this  
          committee on April 29, 2014, and would establish the California  
          Student Loan Refinancing Program to provide loan refinancing  
          options to students who meet specified requirements.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960