Student debt help program will look to continue past efforts

It’s a common tale that students graduating from college often do so with varying levels of debt. Legislators are looking to change that narrative.

The House Higher Education and Career Readiness Policy and Finance Committee Tuesday reviewed results from the Student Loan Repayment Counseling pilot program. No action was taken. A bill to extend the program’s funding is expected later in session.

Cate Rysavy, senior director of financial services for Lutheran Social Services, gives an evaluation report of a student loan repayment counseling pilot program at the Jan. 31 meeting of the House Higher Education and Career Readiness Policy and Finance Committee. Photo by Paul Battaglia

“The debt is there, we’re just helping people figure out what to do about it,” said Rep. Bud Nornes (R-Fergus Falls). He chairs the committee.

In 2015, the Legislature created a two-year pilot program to help those struggling with student debt. The program provides supplemental support by way of financial counseling, education and assistance through additional resources. Those eligible for assistance must be Minnesota residents who went to school here.

“Based on the needs we have seen, and the successful track record we have had, we hope the Legislature will continue to support this model,” said Cate Rysavy, senior director of financial services for Lutheran Social Services, which was chosen as the counseling agent. The Office of Higher Education manages the program.

The review found that 981 borrowers were served between Oct. 15, 2015, and Nov. 30, 2016. Of those, 352 were more than 61 days delinquent with debt payments.

WATCH The House Higher Education and Career Readiness Policy and Finance Committee reviews the Student Loan Repayment Counseling pilot program 

The results also found that after contacting Lutheran Social Services, 94 percent of borrowers remained current with loan repayment, 97 percent developed a monthly budget, 86 percent felt more comfortable regarding repayment options and 80 percent said payments were now more affordable.