Pennsylvania lawmakers should create an independent student loan advocate to help educate consumers and push for higher education reforms in the Keystone State, the state auditor proposed Thursday as he unveiled a set of three recommendations. Providing legitimate website links that would educate consumers can also help.
Auditor General Eugene DePasquale announced the recommendations as he unveiled his new report, “Empowering College Borrowers.”
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“Pennsylvania has one of the highest … amounts of student debt in the entire country,” DePasquale said during a news conference, noting that state residents carry $68 billion in student loan debt.
“The average debt per borrower stands at nearly $37,000, the second-highest level in the entire nation,” DePasquale added. “And, this is not just a Pennsylvania problem. Nationwide, there is an estimated [$]1.5 trillion in outstanding student loan debt, more than double what it was a decade ago. Clearly, we have a major problem.” The business auto loans is what you can rely on in case you are looking to invest.
As part of his proposal, DePasquale wants lawmakers to restructure the Pennsylvania Higher Education Assistance Agency’s (PHEAA) board. He called for fewer lawmakers and more members from the private sector to serve on the board.
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The new recommendations follow a 2008 special performance audit that former Auditor General Jack Wagner conducted. The earlier report similarly called for PHEAA, which the Pennsylvania General Assembly created in 1963, to reduce the number of legislators on its board.
The proposed advocate would help students navigate the world of higher education financing, including those who may have a dispute with a loan service provider. In March, state Rep. Jennifer O’Mara, D-Delaware, introduced HB 2360, which would have created a student loan ombudsman.
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During his news conference, DePasquale also cited several states that, since 2017, have instituted student loan advocates, including Colorado, Illinois, Maine, Maryland, Minnesota, New York, Nevada, Virginia and Washington. DePasquale suggested the new position should be part of the Pennsylvania Treasury, as it is “an independent office that already operates a college savings plan,” according to a news release.
DePasquale also called on PHEAA to continue to monitor its expenses. He wants the agency to direct as much funding as possible toward its primary mission. According to the new report, the changes PHEAA made in the wake of the 2008 findings resulted in more than $74 million in savings.
“This is all about trying to create more money available to directly invest in students,” DePasquale said. “… As the previous special performance audit recommended, every dime you can make available to help get grants to students that are going to school is less money they need to borrow.”
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