AUGUSTA, Maine — Jody Harris, associate director of Maine Center for Economic Policy, released the following statement following the Legislature’s enactment Monday of LD 995, “An Act To Establish a Student Loan Bill of Rights To License and Regulate Student Loan Servicers,” sponsored by Sen. Eloise Vitelli, D-Arrowsic.
“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.
“In the absence of any real oversight at the federal level, student loan servicers turn to predatory practices that hurt borrowers, including the Mainers who today are carrying more than $6 billion in education debt. These companies frequently create obstacles that leave borrowers paying more than they should or push them into repayment plans they cannot afford. They provide conflicting information or no information at all, leaving borrowers in the dark about about what they owe, when payments are due, or when changes made to repayment terms.
“The Student Loan Bill of Rights will bring real accountability to the Wild West of student loan servicing and will help ensure that these Wall Street corporations are not taking advantage of Maine’s student debt borrowers.”
BACKGROUND: To learn more about the effect predatory student loan servicing practices have on Mainers and Maine’s economy, see Harris’ December 2018 policy brief. For more information about LD 995, click here.