Student Lending

As students head to college campuses around the nation, many have taken out loans to pay for their education. The Consumer Financial Protection Bureau estimates that the student loan debt load nationwide reached more than $1 trillion earlier this year.

Suggested State Legislation: This draft bill combines two Michigan laws enacted in 2009. This legislation permits cities, townships, counties, school districts, or intermediate school districts in areas where the percentage of families with children living at or below the Federal poverty rate is higher than the state average to establish “Promise Zones” to provide financial assistance to postsecondary education to students who graduate from a public or nonpublic high school within that zone. The bill requires the governing bodies of such entities to apply to state department of treasury for approval to establish promise zones.

Suggested State Legislation:This Act creates a program to reimburse education costs for residents who obtain an associate degree or a bachelor’s degree in the state, and live, work and pay taxes in the state thereafter.

Suggested State Legislation: The Act prohibits lenders from making gifts, defined as having not more than nominal value, to colleges and universities and their employees, in exchange for any advantage or consideration provided such lenders related to their educational loan activities.