Prohibits the use of student loan payment credit history checks in certain cases

◆ The sponsor's argument

Why Jessica Ramos says this is needed

With student loan debt well in excess of $1.2 trillion nationwide and climbing, according to the Consumer Financial Protection Board, the burden posed by this burgeoning debt is making it increasingly difficult for college graduates and attendees to meet their financial obligations in a timely manner. The severity of the debt burden has had a growing impact on college graduates with the Project on Student Debt reporting that in 2013 nearly seven in ten college graduates of public and private non-profit colleges had student loans of an average amount of $28,400 a two percent increase from prior year levels. With employers increasingly using credit histories in determining which applicants to hire, as well the uncertain future of student loans and the Department of Education, ten states and the City of Chicago have already enacted laws that limit the use of credit checks by employers making hiring decisions and the New York City Council is considering broadly written legislation on this matter. (NY Times 1/16/15) With a focused approach, this legislation recognizes the importance of ensuring that college graduates and attendees who borrow money to invest in improving their skill sets are not penalized in the job market due to their inability to maintain timely payments on their outstanding student loan debt.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.