Date of enactment: March 28, 2016
2015 Assembly Bill 744   Date of publication*: March 29, 2016
* Section 991.11, Wisconsin Statutes: Effective date of acts. "Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication."
An Act to create 39.53 of the statutes; relating to: requiring institutions of higher education to provide information to students relating to educational costs and financial literacy.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
284,1 Section 1. 39.53 of the statutes is created to read:
39.53 Information for students relating to higher education costs. (1) Definition. In this section, "institution of higher education" means an institution or college campus within the University of Wisconsin System, a technical college under ch. 38, or any private postsecondary institution located in this state that provides an educational program for which it awards an associate degree or higher.
(2) Student letter. (a) An institution of higher education shall annually provide a letter to all students to inform them of the cost of their education. Subject to par. (c), the letter shall include all of the following:
1. For each student loan obtained by the student for which the student loan funds are distributed by the institution as part of the student's financial aid package, all of the following information with respect to that loan:
a. The total amount of debt accrued under the loan to date.
b. The interest rate applicable to the loan.
c. Standard repayment terms for the type of loan.
d. The estimated monthly payment due under the loan when the repayment period commences.
e. The total projected amount of interest to be paid over the term of the loan.
f. The total projected amount, including both principal and interest, to be paid over the term of the loan.
2. The estimated total cost of attendance at the institution of higher education for the academic year, including actual or estimated costs of tuition, fees, and room and board.
3. The cumulative amount of each of the following, stated separately, that the student receives through the institution as part of the student's financial aid package:
a. State grants.
b. Federal grants.
c. Institutional grants.
4. Identification of resources for students to learn more about student loans and identification of other financial literacy sources.
(b) The letter under par. (a) shall be provided to each student at the beginning of the academic year. Whenever possible, the letter shall be transmitted to the student electronically, but the institution of higher education shall provide a printed copy of the letter delivered by hand, mail, facsimile transmission, commercial delivery, or other suitable means if the student does not have the ability to receive the letter electronically.
(c) The letter under par. (a) is required to include the information specified in par. (a) 1. for a student loan obtained from a private lender only to the extent that the institution of higher education has received this information from the private lender or loan servicer.
(3) Financial literacy. Each institution of higher education shall provide to newly entering students information on financial literacy within the student's first semester of enrollment.
284,2 Section 2. Initial applicability.
(1) This act first applies to the academic year beginning after the effective date of this subsection.
284,3 Section 3. Effective date.
(1) This act takes effect on the first day of the 7th month beginning after publication.