'Student Loan Bill of Rights' will protect Maine students from predatory lenders
Bringing “real accountability to the Wild West of student loan servicing,” Maine lawmakers passed a “Student Loan Bill of Rights,” which will give the state the authority to investigate and intervene when borrowers complain of abusive or deceptive practices by student loan lenders.
The bill, unanimously passed by the Maine Senate on Monday, moves now to Governor Janet Mills’ desk, where it is expected to be signed. It establishes a student loan ombudsman within the Bureau of Consumer Credit Protections which will be responsible for collecting complaints from students, assisting them in resolving their issues, and investigating lender violations and setting penalties under the Maine Unfair Trade Practices Act.
“This bill will prevent giant financial corporations from padding their bottom lines by preying on Mainers who just want to responsibly pay down their student debt,” Maine Center for Economic Policy (MECEP) associate director Jody Harris said in a statement.
Mainers owe $6 billion in student debt, according to MECEP, money they note is not going back into the local economy, being used to purchase homes, or set aside for retirement. An analysis by the organization last year found that without their debt, Maine borrowers could support an additional 6,000 jobs and as much as $750 million in consumer spending.
Read more: https://mainebeacon.com/student-loan-bill-of-rights-will-protect-maine-students-from-predatory-lenders/