Pennsylvania attorney general aims to make repayment of student loans less punitive
(The Center Square) – Attorney General Josh Shapiro has announced that his office is taking steps to make it easier and more convenient for Pennsylvanians to pay back student debts.
As a part of Shapiro’s direction to make the collection of outstanding student debt more consumer-friendly, the Office of Attorney General is working to implement payment plans and accept personal checks from individuals instead of requiring debts be paid by punitive, high-fee, money orders or cashier’s checks.
The commonwealth will no longer send outstanding student fees to for-profit debt collectors. Universities will no longer be approved to send student fees to for-profit debt collectors before attempting a more feasible approach.
More than $17 million in fees owed to the Commonwealth from 4,760 students of the Pennsylvania State System of Higher Education will be recalled from private collection agencies to the Office of Attorney General.
“Our goal is to make it easier for Pennsylvanians to improve their lives through college – not send them to collections, hurt their credit, and prohibit them from making themselves whole by forcing them to pay by cashier’s checks and money orders,” Shapiro said. “Today’s announcement is just one step towards easing the financial burden on Pennsylvania’s students, and there will be more to come.”
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