Bill > AB850

This bill addresses institutional debt in higher education by establishing new protections for students with outstanding debts owed directly to educational institutions. The bill prohibits colleges and universities from charging higher tuition or preventing students from enrolling or registering solely because of an institutional debt, which can include library fines, parking tickets, or unpaid fees. Institutions must provide a one-time exemption for students with such debts and offer an opportunity to enter a payment plan. The bill requires colleges to create a written policy for debt collection that follows consumer protection guidelines, and prohibits reporting these debts to credit agencies or using third-party debt collectors that aren't properly licensed. Starting in 2027, public higher education institutions will be required to submit detailed biennial reports about institutional debt, including the total number and dollar amount of debts, demographic information, and breakdown by expense type. By 2029, these reports must include more comprehensive data such as racial and gender demographics of students with debt and details about the sources of these debts. The legislation aims to increase transparency around institutional debt and prevent practices that can create barriers to student success, while acknowledging that schools can still enforce payment for current academic terms.

Budget and Finance, Education

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB850