STUDENT DEBT ASSISTANCE ACT

Creates the Student Debt Assistance Act. Prohibits an institution of higher learning or a public or private entity that provides academic transcripts from (i) withholding academic transcripts from a current or former student because the student owes a debt to the institution, (ii) conditioning the provision of an academic transcript on the payment of a debt, other than a fee charged to provide the transcript, (iii) charging a higher fee to obtain an academic transcript or providing less favorable treatment of a request for an academic transcript because a current or former student owes a debt, or (iv) using academic transcript issuance as a tool for debt collection. Beginning with the 2022-2023 academic year, requires an institution of higher learning to make a good faith effort to offer a debt repayment plan to any student who owes a debt of $250 or more to the institution. Sets forth provisions concerning the debt repayment plan and enrollment procedures. Effective immediately. Senate Floor Amendment No. 1 Replaces everything after the enacting clause. Creates the Student Debt Assistance Act. Prohibits an institution of higher education from refusing to provide an unofficial transcript to a current or former student on the grounds that the student owes a debt; conditioning the provision of an unofficial transcript on the payment of a debt, other than a fee charged to provide the transcript; or charging a higher fee for obtaining an unofficial transcript or providing less favorable treatment of a request for an unofficial transcript because a current or former student owes a debt. Provides that an institution of higher education (1) must provide an official transcript of a current or former student to a current or potential employer, even if the current or former student owes a debt; (2) may not condition the provision of an official transcript to a current or potential employer on the payment of a debt, other than a fee charged to provide the transcript; and (3) may not charge a higher fee for transferring an official transcript to a current or potential employer or provide less favorable treatment for such a request because a current or former student owes a debt. Beginning with the 2022-2023 school year, requires every institution of higher education to have a policy instituting a financial or physical hardship withdrawal process; sets forth requirements concerning the process. Provides that if an institution of higher education chooses to send a current or former student's past due debt to a debt collection agency, the past due debt may not be reported to any credit reporting agencies or used against that student in a credit report or credit score. Effective immediately. House Floor Amendment No. 2 Provides that if an institution of higher education chooses to send a current or former student's past due debt to a debt collection agency, the past due debt may not be reported to any credit reporting agencies, except as provided by federal law (instead of may not be reported to any credit reporting agencies or used against that student in a credit report or credit score).