Sponsor: Assemblymember John Perez (D)
Summary: Establishes the California Student Loan Refinancing Program within the California Educational Facilities Authority and provides for its administration by the Treasurer’s office, with the goals of helping eligible students and graduates to refinance loan debt at favorable rates and creating a revolving fund so that additional refinancing may occur to help more students and graduates.
Authorizes the California Educational Facilities Authority to issue bonds for purposes of providing student loan refinancing options, including loan consolidation, interest rate buy-down, debt restructuring, establishing a loan loss reserve account and alignment with various federal student loan alternative repayment programs.
Establishes eligibility requirements for students and graduates. Authorizes the board of the California Educational Facilities Authority to develop and adopt regulations and procedures for the implementation of the program.
Status: Introduced 2/21/2014. Referred to Assembly Committee on Higher Education 3/10/2014. Hearing held, reported; re-referred to Assembly Committee on Appropriations 4/29/2014.
Outlook: After allowing for public testimony, the Assembly Committee on Higher Education recommended this measure for passage unanimously. This measure will next be referred to the Assembly Committee on Appropriations for consideration. As this measure contains fiscal provisions it must be approved by the Appropriations Committee before it may be considered by the full chamber. Per Joint Rule 61(b)(8), the committee has by May 23 to act on this measure.
The sponsor is a member of the majority party but has not garnered the support of any cosponsors. The Democratic Party controls both legislative chambers as well as the Office of Governor.
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