Lawmakers created The Student's Bill of Rights to help lower the $1 trillion student loan debt
The average graduate will owe 27K in student loans
Last Updated: 246 days ago
BAKERSFIELD, Calif. -
A California lawmaker is introducing a package of bills he calls the "Student Bill of Rights." The four-bill package is intended to help students from going too deep into debt.
If passed, the legislative package would also ease the burden for those who are already in a financial situation.
Student loan debt is now above one trillion dollars nationally and is creating a bigger burden than credit card debt.
A part of the legislation is the Know Before You Owe bill that will require entrance and exit loan counseling for students receiving private loans.
Student loan debt has been a growing financial expense the average graduating college senior will owe nearly 27 thousand dollars and students at Cal State Bakersfield are feeling the pain.
Students 23ABC spoke to had loan debts ranging from six to 35 thousand dollars.
CSUB officials stated that families typically borrow an average of $12,500 in Federal loans for their CSUB student’s undergraduate study.
With the debt continually increasing assembly member Bob Wieckowski of Fremont set out to take some of the burden away from college graduates.
"We're calling it know before you owe if you're getting a federally guaranteed student loan there’s an entrance and exit interview that you have to do that lets you know what forbearance means and what happens if you get into a pickle and have trouble," Wieckowski explained.
When 23ABC spoke with CSUB students most of them said they think the counseling would be beneficial before accepting any loan.
"I think they should get counseling before they get the money to know what to do with it and be more aware of how to handle it and manage your money," said CSUB Freshman Liliana Lozano.
The legislation would also prohibit wage garnishment orders on student loans not made. Those who fall behind on their private student loans can have up to 25 percent of their paychecks garnished and the bill would not allow that in California.
Another portion of the bill is to increase overall financial literacy from kindergarten through 12th grade to improve students understanding of savings, credit, budgeting and overall personal finance.
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