Institutions of Postsecondary Education – Institutional Debt – Report

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0628*

SENATE BILL 628
F2 6lr3326
CF HB 877
By: Senator Kramer
Introduced and read first time: February 5, 2026
Assigned to: Education, Energy, and the Environment

A BILL ENTITLED

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
authorizing the Commission to assess a civil penalty against an institution for failure 5
to submit a report or knowingly including inaccurate information in a report; 6
establishing certain notice and hearing procedures that the Commission must follow 7
before assessing a civil penalty against an institution; and generally relating to 8
institutional debt reporting by institutions of postsecondary education. 9

BY adding to 10
Article – Education 11
Section 11–212 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2025 Supplement) 14

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16

Article – Education 17

11–212. 18

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20

(2) “ADMINISTRATIVE HOLD” MEANS ANY HOLD OR LIMITATION ON A 21
STUDENT’S ACCOUNT AT AN INST ITUTION OF POSTSECON DARY EDUCATION THAT 22
PREVENTS THE STUDENT FROM ENROLLING IN COURSES, OBTAINING OR RESIDING 23
IN CAMPUS HOUSING, USING FACILITIES, OR OTHERWISE LIMITING THE STUDENT’S 24
2 SENATE BILL 628

ACCESS TO THE INSTITUTION’S FACILITIES OR RESOURCES. 1

(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 2
AN INSTITUTION OF PO STSECONDARY EDUCATIO N INDICATES IT NO LO NGER 3
EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDLESS OF WHETHER T HE 4
INSTITUTION: 5

(I) REMOVES THE DEBT FROM ITS RECORDS; 6

(II) PURSUES THE STUDENT OWING THE DEBT; 7

(III) ACCEPTS PAYMENT FOR THE DEBT; OR 8

(IV) SELLS THE DEBT. 9

(4) “DEMOGRAPHIC CATEGORIES” MEANS THE FOLLOWING GROUPS 10
AND POPULATIONS: 11

(I) RACE; 12

(II) ETHNICITY; 13

(III) AGE; 14

(IV) GENDER; 15

(V) IN–STATE OR OUT–OF–STATE RESIDENCY; 16

(VI) ENROLLMENT STATUS; AND 17

(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFER RED OR 18
PURSUED. 19

(5) (I) “INSTITUTIONAL DEBT” MEANS AN EXTENSION O F CREDIT, 20
A DEBT, OR AN OBLIGATION OWED OR INCURRED BY A STUDENT, IN THE STUDENT’S 21
CAPACITY AS A STUDENT, TO AN INSTITUTION OF POSTSECONDARY EDUCATION. 22

(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT , DEBT, OR 23
OBLIGATION FOR: 24

1. TUITION CHARGES; 25

2. ROOM AND BOARD CHARGES; AND 26
SENATE BILL 628 3

3. FINES AND FEES. 1

(6) “NONJUDICIAL COLLECTIO N” MEANS COLLECTION OF 2
INSTITUTIONAL DEBT OWED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 3
COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT. 4

(7) “TUITION PAYMENT PLAN” MEANS AN AGREEMENT UNDER WHICH 5
AN INSTITUTION OF POSTSECONDARY EDUCATION ALLOWS A STUDENT T O ENROLL 6
FOR AN ACADEMIC TERM AND DEFER PAYMENT OF PARTIAL OR FULL COST S 7
ASSOCIATED WITH THAT TERM. 8

(8) “VOLUNTARY PAYMENT” MEANS A PAYMENT MADE BY A STUDENT 9
TO AN INSTITUTION OF POSTSECONDARY EDUCATION TO PAY AN INSTIT UTIONAL 10
DEBT, IN WHOLE OR IN PART, THAT WAS NOT MADE IN ACCORDANCE WITH A COURT 11
JUDGMENT OR A NONJUDICIAL COLLECTION. 12

(B) (1) ON OR BEFORE OCTOBER 1, 2027, AND EACH OCTOBER 1 13
THEREAFTER, AN INSTITUTION OF POSTSECONDARY EDUCATION SHALL SUBMIT TO 14
THE COMMISSION A REPORT O N INSTITUTIONAL DEBT IN ACCORDANCE WITH 15
SUBSECTION (C) OF THIS SECTION. 16

(2) ON OR BEFORE DECEMBER 1, 2027, AND EACH DECEMBER 1 17
THEREAFTER, THE COMMISSION SHALL , IN ACCORDANCE WITH § 2–1257 OF THE 18
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 19
SUMMARIZING THE REPORTS SUBMITTED TO THE COMMISSION BY INSTITUTIONS OF 20
POSTSECONDARY EDUCATION UNDER THIS SECTION. 21

(C) THE REPORT REQUIRED U NDER SUBSECTION (B)(1) OF THIS SECTION 22
SHALL INCLUDE THE FO LLOWING INFORMATION AS REFLECTED ON THE LAST DAY 23
OF THE PREVIOUS FISCAL YEAR: 24

(1) TOTAL STUDENT ENROLLM ENT, DISAGGREGATED BY 25
DEMOGRAPHIC CATEGORIES; 26

(2) TOTAL DOLLAR AMOUNT O F INSTITUTIONAL DEBT , 27
DISAGGREGATED BY: 28

(I) DEMOGRAPHIC CATEGORIES; 29

(II) NUMBER OF ENROLLED AND FORMER STUDENTS WHO OWE 30
INSTITUTIONAL DEBT; 31

4 SENATE BILL 628

(III) LENGTH OF TIME INSTITUTIONAL DEBT HAS BEEN OWED; 1

(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL D EBT WAS 2
INCURRED; 3

(V) PERCENTAGE AND TOTAL NUMBER OF STUDENTS W ITH 4
INSTITUTIONAL DEBT WHO RECEIVED A FEDERAL PELL GRANT; AND 5

(VI) DEBT AMOUNT THAT ACCRUED DURING THAT FISCAL YEAR 6
AND DEBT AMOUNT THAT ACCRUED BEFORE THAT FISCAL YEAR; 7

(3) STATUS AND COLLECTION OF INSTITUTIONAL DEBT, INCLUDING: 8

(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 9
DEBT HELD IN GOOD STANDING AND PAST DUE; 10

(II) NUMBER AND TOTAL AMOU NT OF INSTITUTIONAL DEBTS 11
UNDER TUITION PAYMENT PLANS, INCLUDING THE PERCENTAGE THAT ARE IN GOOD 12
STANDING OR PAST DUE; 13

(III) NUMBER AND TOTAL AMOU NT OF INSTITUTIONAL DEBTS 14
UNDER STUDENT LOANS OWED TO THE INSTITUTION, INCLUDING THE PERCENTAGE 15
THAT ARE IN GOOD STANDING AND PAST DUE; 16

(IV) NUMBER OF ENROLLED STUDENTS AND FORMER STUDENTS 17
WHO MADE VOLUNTARY PAYMENTS TO THE INSTITUTION DURING THAT FISCAL YEAR 18
AND THE TOTAL AMOUNT PAID; 19

(V) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 20
DEBT CHARGED OFF DURING THAT FISCAL YEAR; 21

(VI) NUMBER OF STUDENT ACC OUNTS REPORTED TO A CREDIT 22
REPORTING AGENCY DURING THAT FISCAL YEAR; 23

(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 24
REFERRED TO A THIRD PARTY FOR DEBT COLLE CTION OR SALE DURING THAT 25
FISCAL YEAR, INCLUDING DEBT COLLE CTION AGENCIES, DEBT COLLECTORS, AND 26
DEBT BUYERS, AND THE TOTAL AMOUNT COLLECTED; 27

(VIII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 28
SUBJECT TO LITIGATION BY THE INSTITUTION DURING THAT FISCAL YEAR AND THE 29
TOTAL AMOUNT COLLECTED; AND 30

SENATE BILL 628 5

(IX) FOR PUBLIC INSTITUTIO NS ONLY , PERCENTAGE AND 1
NUMBER OF STUDENT ACCOUNTS REFERRED TO NONJUDICIAL COLLECTION DURING 2
THAT FISCAL YEAR AND THE TOTAL AMOUNT COLLECTED; 3

(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 4
INCLUDING: 5

(I) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 6
WITH AN ADMINISTRATIVE HOLD DUE TO INSTITUTIONAL DEBT; AND 7

(II) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 8
WHO HAVE COMPLETED ALL REQUIRED COURSES BUT ON WHOM A DEGREE HAS NOT 9
BEEN CONFERRED DUE TO INSTITUTIONAL DEBT; 10

(5) A LIST OF PERSONS USED BY THE INSTITUTION F OR 11
INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATING LOANS, 12
ESTABLISHING AND FAC ILITATING INSTALLMENT PLANS OR DEBT PAYM ENT, AND 13
INITIATING LAWSUITS; 14

(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 15
TO ESTABLISH AN INST ITUTIONAL DEBT , INCLUDING A PROMISSO RY NOTE , AN 16
ENROLLMENT AGREEMENT, A TUITION PAYMENT PLAN, OR A CONTRACT; 17

(7) A SUMMARY OF AND CITAT ION TO THE INSTITUTI ON’S POLICIES 18
RELATING TO AN ENROLLED STUDENT’S FINANCIAL OBLIGATIONS, INCLUDING: 19

(I) TUITION PAYMENT PLANS; 20

(II) STUDENT LOANS OWED TO THE INSTITUTION; 21

(III) ADMINISTRATIVE HOLDS; 22

(IV) DEBT COLLECTION; AND 23

(V) REPORTS TO CREDIT REPORTING AGENCIES; AND 24

(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 25
RELEVANT TO EVALUATING INSTITUTIONAL DEBTS. 26

(D) NOTHING IN THIS SECTI ON MAY B E CONSTRUED TO REQUI RE AN 27
INSTITUTION OF POSTSECONDARY EDUCATION TO REPORT PERSONAL IDENTIFYING 28
INFORMATION OF AN ENROLLED STUDENT OR A FORMER STUDENT. 29

6 SENATE BILL 628

(E) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, THE 1
COMMISSION MAY ASSESS A CIVIL PENALT Y AGAINST AN INSTITU TION OF 2
POSTSECONDARY EDUCAT ION IF THE INSTITUTI ON FAILS TO SUBMIT A REPORT 3
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES 4
INACCURATE INFORMATION IN A REPORT AS DETERMINED BY THE COMMISSION. 5

(2) (I) BEFORE ASSESSING A PENALTY , THE COMMISSION SHALL 6
SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF T HE 7
CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN OPPORTUNITY 8
TO REQUEST A HEARING WITHIN 20 DAYS AFTER RECEIPT OF THE NOTICE. 9

(II) A NOTICE OF CHARGES UNDER SUBPARAGRAPH (I) OF THIS 10
PARAGRAPH SHALL: 11

1. DESCRIBE THE DEFICIENCIES IN THE REPORT; AND 12

2. DIRECT THE INSTITUTIO N TO CORRECT THE 13
DEFICIENCIES WITHIN 30 DAYS AFTER RECEIPT OF THE NOTICE. 14

(3) IF THE INSTITUTION OF POSTSECONDARY EDUCATION REQUESTS 15
A HEARING WITHIN THE 20–DAY PERIOD: 16

(I) THE COMMISSION SHALL PROMPTLY HOLD A HEARING NOT 17
LATER THAN 60 DAYS AFTER RECEIPT OF THE REQUEST FOR A HEARING; AND 18

(II) THE INSTITUTION SHALL HAVE THE OPPORTUNITY TO BE 19
HEARD PUBLICLY BEFORE THE COMMISSION IN THE INSTITUTION’S OWN DEFENSE, 20
IN PERSON, AND BY COUNSEL. 21

(4) IF THE COMMISSION DETERMINES THAT AN INSTITUTION OF 22
POSTSECONDARY EDUCAT ION FAILS TO SUBMIT A REPORT REQUIRED UN DER 23
SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES INACCUR ATE 24
INFORMATION IN A REPORT, THE COMMISSION MAY IMPOSE A CIVIL PENALTY NOT 25
EXCEEDING $10,000 FOR EACH VIOLATION. 26

(F) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 27
SECTION. 28

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29
1, 2026. 30