The Student Loan Bill of Rights helps protect against predatory behavior and protects borrower's rights.
Jul 25, 2019 4:54 pm ET
View Original Story: https://patch.com/rhode-island/cranston/new-law-protect-student-loan-borrowers
Rhode Island students have more protections in place to protect against predatory lending. The Student Loan Bill of Rights was passed by the General Assembly and signed into law by Governor Gina Raimondo. Both Rhode Island General Treasurer Seth Magaziner and Attorney General Peter Neronha supported the legislation.
"By several measures, student loan debt has increased greatly in the last 10 years," said Warwick Representative Joseph McNamara, the chairman of the House Committee on Health, Education and Welfare. "It has surpassed the amount households owe on auto loans, home equity loans and credit cards. This legislation will help to address the crisis by establishing oversight of the student loan process and prohibiting predatory practices."
The law protects borrowers by cracking down on predatory lending tactics and requires lenders take steps to ensure best practices are followed. Those who violate the law can be penalized by the Attorney General or the Department of Business Regulation.
"The heavy burden of student debt is challenging enough for the majority of college graduates. Incompetent, inefficient or even deceitful loan servicers should not be allowed to exacerbate their struggles," said Newport Senator Dawn Euer, the bill's sponsor. "Student loan servicers must be held accountable to ensure that they are providing honest, reliable information and services to their borrowers."
The law also addresses issues of borrowers who have been incorrectly double-charged or marked as late on payments, which can often take months or years to correct.
"There is a growing student debt crisis in the country and in Rhode Island. There are borrowers who do everything right and still fall victim to predatory and deceptive practices by the corporations that service their loans," Treasurer Magaziner said. "The Rhode Island General Assembly passed our common-sense legislation that will hold servicers accountable and provide an important resource for Rhode Islanders who are paying off student loans."
Across Rhode Island, more than 133,000 people owe a total of $4.5 billion in student loan debt, 16,000 of which are senior citizens. More than $470 million of that debt is behind on payment.
"If and when borrowers have issues with their loans or loan servicers, this legislation provides them with a place to go to address those issues," AG Neronha said. "While our primary focus will be on helping Rhode Islanders get the information they need to solve their student loan problems, my office will be ready, on behalf of mistreated borrowers, to investigate and enforce violations of the student loan standards outlined in this bill."
View Original Story: https://patch.com/rhode-island/cranston/new-law-protect-student-loan-borrowers
Comments