Institutions of Postsecondary Education - Institutional Debt - Report

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0877*

HOUSE BILL 877
F2 6lr3030
HB 920/25 – APP CF SB 628
By: Delegates Spiegel, Behler, Coley, Foley, Forbes, Kaiser, Lopez, Schindler,
Wims, and Wu
Introduced and read first time: February 4, 2026
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 2, 2026

CHAPTER ______

AN ACT concerning 1

Institutions of Postsecondary Education – Institutional Debt – Report 2

FOR the purpose of requiring institutions of postsecondary education to submit a report on 3
institutional debt to the Maryland Higher Education Commission each year 4
periodically beginning on or before a certain date ; authorizing the Commission to 5
assess a civil penalty against an institution for failure to submit a report or 6
knowingly including inaccurate information in a report; establishing certain notice 7
and hearing procedures that the Commission must follow before assessing a civil 8
penalty against an institution requiring the Commission to develop and publish a 9
certain data dictionary on or before a certain date ; and generally relating to 10
institutional debt reporting by institutions of postsecondary education. 11

BY adding to 12
Article – Education 13
Section 11–212 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Education 19

11–212. 20
2 HOUSE BILL 877

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2

(2) “ADMINISTRATIVE HOLD” MEANS ANY HOLD OR LIMITATION ON A 3
STUDENT’S ACCOUNT AT AN INST ITUTION OF POSTSECON DARY EDUCATION THAT 4
PREVENTS THE STUDENT FROM ENROLLING IN COURSES, OBTAINING OR RESIDING 5
IN CAMPUS HOUSING, USING FACILITIES, OR OTHERWISE LIMITING THE STUDENT’S 6
ACCESS TO THE INSTITUTION’S FACILITIES OR RESOURCES. 7

(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 8
AN INSTITUTION OF PO STSECONDARY EDUCATIO N INDICATES I T NO LONGER 9
EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDLESS OF WHETHE R THE 10
INSTITUTION: 11

(I) REMOVES THE DEBT FROM ITS RECORDS; 12

(II) PURSUES THE STUDENT OWING THE DEBT; 13

(III) ACCEPTS PAYMENT FOR THE DEBT; OR 14

(IV) SELLS THE DEBT. 15

(4) “DEMOGRAPHIC CATEGORIES” MEANS THE FOLLOWING GROUPS 16
AND POPULATIONS: 17

(I) RACE; 18

(II) ETHNICITY; 19

(III) AGE; 20

(IV) GENDER; 21

(V) IN–STATE OR OUT–OF–STATE RESIDENCY; 22

(VI) ENROLLMENT STATUS; AND 23

(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFERRED OR 24
PURSUED. 25

HOUSE BILL 877 3

(5) (I) “INSTITUTIONAL DEBT” MEANS AN EXTENSION O F CREDIT, 1
A DEBT, OR AN OBLIGATION OWED OR INCURRED BY A STUDENT, IN THE STUDENT’S 2
CAPACITY AS A STUDENT, TO AN INSTITUTION OF POSTSECONDARY EDUCATION. 3

(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT , DEBT, OR 4
OBLIGATION FOR: 5

1. TUITION CHARGES; 6

2. ROOM AND BOARD CHARGES; AND 7

3. FINES AND FEES. 8

(6) “NONJUDICIAL COLLECTION” MEANS COLLECTION OF 9
INSTITUTIONAL DEBT OWED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 10
COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT. 11

(7) “TUITION PAYMENT PLAN” MEANS AN AGREEMENT UNDER WHICH 12
AN INSTITUTION OF POSTSECONDARY EDUCATION ALLOWS A STUDENT TO ENROLL 13
FOR AN ACADEMIC TERM AND DEFER PAYMENT OF PARTIAL OR FULL COST S 14
ASSOCIATED WITH THAT TERM. 15

(8) “VOLUNTARY PAYMENT” MEANS A PAYMENT MADE BY A STUDENT 16
TO AN INSTITUTION OF POSTSECONDARY EDUCATION TO PAY AN INSTIT UTIONAL 17
DEBT, IN WHOLE OR IN PART, THAT WAS NOT MADE IN ACCORDANCE WITH A COURT 18
JUDGMENT OR A NONJUDICIAL COLLECTION. 19

(B) (1) ON OR BEFORE OCTOBER AUGUST 1, 2027, AND EACH OCTOBER 20
1 EVERY 2 YEARS THEREAFTER, AN INSTITUTION OF PO STSECONDARY EDUCATION 21
SHALL SUBM IT TO THE COMMISSION A REPORT O N INSTITUTIONAL DEBT IN 22
ACCORDANCE WITH SUBS ECTION (C) (B) OF THIS SECTION AND THE STANDARDS 23
ESTABLISHED BY THE DATA DICTIONARY UNDER SUBSECTION (D) OF THIS SECTION. 24

(2) ON OR BEFORE DECEMBER 1, 2027, AND EACH DECEMBER 1 25
EVERY 2 YEARS THEREAFTER, THE COMMISSION SHALL, IN ACCORDANCE WITH § 26
2–1257 OF THE STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO THE GENERAL 27
ASSEMBLY SUMMARIZING THE REPORTS SUBMITTE D TO THE COMMISSION BY 28
INSTITUTIONS OF POSTSECONDARY EDUCATION UNDER THIS SECTION. 29

(C) (B) THE REPORT REQUIRED U NDER SUBSECTION (B)(1) (A)(1) OF 30
THIS SECTION SHALL I NCLUDE THE FOLLOWING INFORMATION AS REFLECTED ON 31
THE LAST DAY OF THE PREVIOUS FISCAL YEAR: 32

4 HOUSE BILL 877

(1) TOTAL STUDENT ENROLLM ENT, DISAGGREGATED BY 1
DEMOGRAPHIC CATEGORIES; 2

(2) TOTAL DOLLAR AMOUNT O F INSTITUTIONAL DEBT , 3
DISAGGREGATED BY: 4

(I) DEMOGRAPHIC CATEGORIES; 5

(II) NUMBER OF ENROLLED AND FORMER STUDENTS WHO OWE 6
INSTITUTIONAL DEBT; 7

(III) LENGTH OF TIME INSTITUTIONAL DEBT HAS BEEN OWED; 8

(IV) TYPE OF CHARGES FOR WHICH IN STITUTIONAL DEBT WAS 9
INCURRED; 10

(V) PERCENTAGE AND TOTAL NUMBER OF STUDENTS W ITH 11
INSTITUTIONAL DEBT WHO RECEIVED A FEDERAL PELL GRANT; AND 12

(VI) DEBT AMOUNT THAT ACCRUED DURING THAT FISCAL YEAR 13
AND DEBT AMOUNT THAT ACCRUED BEFORE THAT FISCAL YEAR; 14

(3) STATUS AND COLLECTION OF INSTITUTIONAL DEBT, INCLUDING: 15

(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 16
DEBT HELD IN GOOD STANDING AND PAST DUE; 17

(II) NUMBER AND TOTAL AMOU NT OF INSTITUTIONAL DEBTS 18
UNDER TUITION PAYMENT PLANS, INCLUDING THE PERCENTAGE THAT ARE IN GOOD 19
STANDING OR PAST DUE; 20

(III) NUMBER AND TOTAL AMOU NT OF INSTITUTIONAL DEBTS 21
UNDER STUDENT LOANS OWED TO THE INSTITUTION, INCLUDING THE PERCENTAGE 22
THAT ARE IN GOOD STANDING AND PAST DUE; 23

(IV) NUMBER OF ENROLLED STUDENTS AND FORMER STUDENTS 24
WHO MADE VOLUNTARY PAYMENTS TO THE INSTITUTION DURING THAT FISCAL YEAR 25
AND THE TOTAL AMOUNT PAID; 26

(V) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 27
DEBT CHARGED OFF DURING THAT FISCAL YEAR; 28

HOUSE BILL 877 5

(VI) NUMBER OF STUDENT ACCOUNTS REPORTED TO A CREDIT 1
REPORTING AGENCY DURING THAT FISCAL YEAR; 2

(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 3
REFERRED TO A THIRD PARTY FOR DEBT COLLE CTION OR SALE DURING THAT 4
FISCAL YEAR, INCLUDING DEBT COLLE CTION AGENCIES, DEBT COLLECTORS, AND 5
DEBT BUYERS, AND THE TOTAL AMOUNT COLLECTED; 6

(VIII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 7
SUBJECT TO LITIGATION BY THE INSTITUTION DURING THAT FISCAL YEAR AND THE 8
TOTAL AMOUNT COLLECTED; AND 9

(IX) FOR PUBLIC INSTITUTIO NS ONLY , PERCENTAGE AND 10
NUMBER OF STUDENT ACCOUNTS REFERRED TO NONJUDICIAL COLLECTION DURING 11
THAT FISCAL YEAR AND THE TOTAL AMOUNT COLLECTED; 12

(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 13
INCLUDING: 14

(I) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 15
WITH AN ADMINISTRATIVE HOLD DUE TO INSTITUTIONAL DEBT; AND 16

(II) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 17
WHO HAVE COMPLETED ALL REQUIRED COURSES BUT ON WHOM A DEGREE HAS NOT 18
BEEN CONFERRED DUE TO INSTITUTIONAL DEBT; 19

(5) A LIST OF PERSONS USED BY THE INSTITUTI ON FOR 20
INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATIN G LOANS , 21
ESTABLISHING AND FAC ILITATING INSTALLMENT PLANS OR DEBT PAYM ENT, AND 22
INITIATING LAWSUITS; 23

(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 24
TO ESTABLISH AN INST ITUTIONAL DEBT, INCLUDING A PROMISSO RY NOTE , AN 25
ENROLLMENT AGREEMENT, A TUITION PAYMENT PLAN, OR A CONTRACT; 26

(7) A SUMMARY OF AND CITAT ION TO THE INSTITUTI ON’S POLICIES 27
RELATING TO AN ENROLLED STUDENT’S FINANCIAL OBLIGATIONS, INCLUDING: 28

(I) TUITION PAYMENT PLANS; 29

(II) STUDENT LOANS OWED TO THE INSTITUTION; 30

(III) ADMINISTRATIVE HOLDS; 31
6 HOUSE BILL 877

(IV) DEBT COLLECTION; AND 1

(V) REPORTS TO CREDIT REPORTING AGENCIES; AND 2

(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 3
RELEVANT TO EVALUATING INSTITUTIONAL DEBTS. 4

(D) (C) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE AN 5
INSTITUTION OF POSTSECONDARY EDUCATION TO REPORT PERSONAL IDENTIFYING 6
INFORMATION OF AN ENROLLED STUDENT OR A FORMER STUDENT. 7

(E) (D) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS 8
SUBSECTION, THE COMMISSION MAY ASSESS A CIVIL PENALTY AGAI NST AN 9
INSTITUTION OF POSTS ECONDARY EDUCATION I F THE INSTITUTION FA ILS TO 10
SUBMIT A REPORT REQU IRED UNDER SUBSECTIO N (B) OF THIS SECTION OR 11
KNOWINGLY INCLUDES I NACCURATE INFORMATION IN A REPORT AS DETERMINED 12
BY THE COMMISSION. 13

(2) (I) BEFORE ASSESSING A PE NALTY, THE COMMISSION SHALL 14
SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF T HE 15
CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN OPPORTUNITY 16
TO REQUEST A HEARING WITHIN 20 DAYS AFTER RECEIPT OF THE NOTICE. 17

(II) A NOTICE OF CHARGES UNDER SUBPARAGRAPH (I) OF THIS 18
PARAGRAPH SHALL: 19

1. DESCRIBE THE DEFICIENCIES IN THE REPORT; AND 20

2. DIRECT THE INSTITUTIO N TO CORRECT THE 21
DEFICIENCIES WITHIN 30 DAYS AFTER RECEIPT OF THE NOTICE. 22

(3) IF THE INSTITUTION OF POSTSECONDARY EDUCATION REQUESTS 23
A HEARING WITHIN THE 20–DAY PERIOD: 24

(I) THE COMMISSION SHALL PROMPTLY HOLD A HEARING NOT 25
LATER THAN 60 DAYS AFTER RECEIPT OF THE REQUEST FOR A HEARING; AND 26

(II) THE INSTITUTION SHALL HA VE THE OPPORTUNITY T O BE 27
HEARD PUBLICLY BEFORE THE COMMISSION IN THE INSTITUTION’S OWN DEFENSE, 28
IN PERSON, AND BY COUNSEL. 29

HOUSE BILL 877 7

(4) IF THE COMMISSION DETERMINES THAT AN INSTITUTION OF 1
POSTSECONDARY EDUCAT ION FAILS TO SUBMIT A REPORT REQU IRED UNDER 2
SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 3
INFORMATION IN A REPORT, THE COMMISSION MAY IMPOSE A CIVIL PENALTY NOT 4
EXCEEDING $10,000 FOR EACH VIOLATION THE COMMISSION SHALL DEVELOP AND 5
PUBLISH A DATA DICTI ONARY THAT DEFINES T HE TERMS , DATA ELEMENTS , 6
CLASSIFICATIONS, AND REPORTING CATEGORIES REQUIRED UNDER THIS SECTION. 7

(F) (E) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT 8
THIS SECTION. 9

SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2027, the 10
Maryland Higher Education Commission shall develop and publish the data dictionary 11
required under § 11–212(d) of the Education Article, as enacted by Section 1 of this Act. 12

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
July 1, 2026. 14

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.