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Information for School Owners: Substitute Senate Bill 5022 Washington Student Loan Transparency Act

In 2017, Governor Inslee signed Substitute Senate Bill 5022, known as the Washington Student Loan Transparency Act. The Act takes effect July 1, 2018. Get more details about the Student Loan Transparency Act visit Senate Bill 5022 (leg.wa.gov).

Starting July 1, 2018 schools must provide student loan debt information to all enrolled students who have applied for a new or revised federal or private financial aid.

Schools must provide to students:

  • Debt details each time they are offered a new or revised federal student loan or private loan certified by the school.
  • The total amount of education loans taken out by the student.
  • The potential total payoff amount, including principal and interest.
  • The repayment amount based on the federal loan or private loan.
  • The percentage a student has reached of their total borrowing limit for federal loans that apply to a student's program of study.

Schools must email students with the above information. In addition to email, you may also provide this information to students in writing, in another electronic format, or in person.

Other requirements that take effect in July 2018:

In addition, the Act requires schools to provide students with consumer information that explains the differences between private student loans and federal student loans, including information about repayment plans available to students based on their income.

When communicating with students, you must let them know your estimates are general in nature and not meant as a guarantee or promise of the actual projected amount. You must also include a statement that lets students know there's a variety of student loan repayment plans available for federal student loans. These plans may help students reduce their monthly repayment, depending on their income. Finally, you'll need to provide students with information about state and federal resources, such as a student education loan debt hotline, federal student loan repayment calculator, or other available resources. We'll provide samples that can be used prior to the implementation date.

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