November 4, 2016
BOSTON (STATE HOUSE NEWS SERVICE) – Students at a University of Massachusetts campus would be alerted to their total student debt load and estimated monthly payoff amounts under a pilot program proposed by Treasurer Deborah Goldberg.
Goldberg on Wednesday filed a bill that would direct UMass to work with her office and the Department of Higher Education to develop the pilot on one of its campuses. At that campus, enrolled students would receive “an estimate of their total outstanding or pending student loan obligations.”
In addition to the total amount of debt amassed, each student would be given “an estimate of the monthly repayment amounts that a similarly situated borrower may incur, including principal and interest, for the amount of loans the student has taken out at the time the information is provided.”
The treasurer told the News Service that the notices could help students make better decisions about taking on student loan debt and will make them more aware of the debt they are accumulating while attending college.
“We’ve seen that when kids do get the information that they need, they make good decisions. It’s just that there’s so much that they don’t understand,” Goldberg said Wednesday. “This is part of our greater financial literacy work and college savings work also.”
Vermont State Treasurer Beth Pearce, NAST’s incoming president, has partnered with Governor Phil Scott to launch a statewide Financial Literacy..