CA AB1160

Prohibits schools from withholding or conditioning diplomas on debt payment, and expands existing transcript protections to include diplomas as of the bill's effective date.

Prevents institutions of higher education from charging higher tuition/fees or withholding degrees based on institutional debt owed by current or former students, with limited exceptions for enrollment holds.

Grants students a one-time exemption from enrollment or registration holds for past-due institutional debt and requires institutions to establish written debt collection policies consistent with consumer protection standards.

Restricts institutions from engaging unlicensed third-party debt collectors, reporting to credit agencies, or pursuing civil action until 180 days after initial contact, and prohibits collections before reasonable collection efforts are made.

Requires public higher education institutions to report biennial data on institutional debt amounts, payment plans, and collection methods beginning July 1, 2026, and delays tax refund offsets for student institutional debt by 730 days from the date the debt was incurred.