Statewide Bill AB 2507 to Tackle Student Debt Crisis by Piloting an Interest-Free, Fee-Free Student Loan Program with Jewish Free Loan Association Close to Becoming Law

LOS ANGELES, Aug. 7, 2024 /PRNewswire/ -- In a move to address the escalating student debt crisis, California has introduced AB 2507, an innovative solution designed to alleviate the financial burdens of higher education. If successful, this landmark legislation will establish an interest-free, no fee student loan program for California, in collaboration with the Jewish Free Loan Association (JFLA), to provide relief to thousands of students. The program will be piloted in Southern California at UCLA, CSU Northridge, and Glendale Community College. AB 2507 was authored by Assemblymember Laura Friedman and sponsored by JFLA and the Jewish Public Affairs Committee of California (JPAC).

AB 2507 aims to make higher education more accessible and affordable for all Californians. By eliminating interest on student loans, the program will significantly reduce the financial strain on students and their families, allowing graduates to enter the workforce without the burden of insurmountable debt. This initiative reflects California's commitment to investing in the future of young people and ensuring that education remains a viable pathway to opportunity.

Introduced during this legislative session, AB 2507 has already passed the California Assembly Committee on Higher Education, Assembly Appropriations Committee, and the Assembly floor with a unanimous vote. In June, the bill was introduced to the California Senate Education Committee where it also passed unanimously and is now awaiting a hearing by the California Senate Appropriations Committee. If it passes this critical juncture, AB 2507 will move to the Senate floor for a vote before heading to the Governor's desk for a signature.

"Education is a right, not a privilege," said Rachel Grose, the Executive Director of JFLA. "We are beyond thrilled to partner with California on this innovative program, which aligns perfectly with our mission to provide interest-free loans that promote financial stability and self-sufficiency." JFLA has a longstanding 121-year history of offering interest-free loans to individuals and families in need.

AB 2507 is currently seeking support to move through the California Senate Appropriations Committee. You can sign this letter of support to help move this bill to the Senate floor.

For more information about AB 2507 and JFLA's interest-free student loan program, please contact Mimi Sroka by phone at (323) 761-8830, x 120 or by email at [email protected].

About the Jewish Free Loan Association
Jewish Free Loan Association (JFLA) is the only non-sectarian interest-free lending organization in Los Angeles, Ventura and Santa Barbara Counties. Our interest-free, no-fee loans are the ideal tool to impact the major economic issues facing our community, including predatory lending, housing stability, student debt, access to medical and dental care, domestic violence, business insecurity, and more. JFLA has served the community for 121 years, and currently has an outstanding portfolio balance of over $18+ million to thousands of clients throughout the region.

SOURCE Jewish Free Loan Association