HB 165

Bill Subjects

Abstract

Requires each public institution that makes a loan to a student to (i) include in loan documents for each such loan an individual plan for the repayment of principal and interest and the payment of any late fees and clear and detailed information about the collection process for such loan pursuant to the Virginia Debt Collection Act, including information about the agency or entity that is responsible for collection, and (ii) establish a process for notifying each student or, in the case of an undergraduate student and as appropriate, the student's parent of any loan payment that is past due no later than (a) 30 days after such payment becomes past due and (b) if necessary, the end of the academic term during which such payment becomes past due. The bill permits each such institution, with the consent of the borrower, to modify the terms of any loan for which payments are past due to provide for repayment forbearance on such loan and repayment to commence on a mutually agreed-upon date in the future.