AN ACT REQUIRING PUBLIC INSTITUTIONS OF HIGHER EDUCATION TO REPAY STUDENT LOANS FOR A GRADUATE WHO IS GRANTED BANKRUPTCY PROTECTION.

HB 6489 requires public colleges and universities to repay student loans for graduates who receive bankruptcy protection within 10 years of graduating. The bill directly affects public higher education institutions and their alumni who file for bankruptcy. It mandates that institutions cover the full loan amount for qualifying graduates, triggered when bankruptcy protection is granted. The policy applies only to public institutions and specifically targets graduates within a decade of completing their degrees. This creates a new financial obligation for schools, separate from federal loan programs.