Text Size
Login

Student Loan Debt

  • biss 031517SPRINGFIELD – Senator Daniel Biss’ groundbreaking measure to protect Illinois college students from crushing education debt advanced out of a Senate committee on Wednesday.

    Senate Bill 1351 establishes the Student Loan Bill of Rights in Illinois to provide as much protection as possible for student borrowers, a population that frequently is targeted by bad actors in the student loan industry.

    “At a time when a quarter of student loan borrowers are behind in their payments, we need to make sure borrowers understand their rights and have access to resources that will prevent them from defaulting on their loans,” Biss said. “I am pleased to work with Attorney General Lisa Madigan on behalf of student borrowers, and I encourage each of my colleagues to support this measure.”

    The Student Loan Bill of Rights would help to ensure students and their families receive clear information about the money they borrow for higher education and how their student loans are serviced. Among the protections offered in the legislation:

    • Requires student loan services to provide specialized employees to assist borrowers with questions about loan payments, explain repayment options and evaluate a borrower’s financial situation to determine which payment plan is appropriate.
    • Requires loan servicers to give borrowers accurate information on billing statements and properly process borrowers’ payments, and bars servicers from charging unreasonable fees.
    • Requires loan servicers to tell borrowers when and how their federal loans may be discharged due to a borrower’s disability or a problem with the school the borrower attended.
    • Requires loan servicers to provide information so cosigners know the conditions of being released from their obligations.
    • Requires servicers to follow procedures when a loan is transferred to a new servicer to ensure continuity and ensure borrowers’ payments are properly handled.
    • Ensures borrowers have the right to request information and file account disputes with their servicer and appeal any servicer determination.
    • Creates a student loan ombudsman in the office of the attorney general to assist borrowers with student loans.
    • Establishes a student loan servicing license with the Illinois Department of Financial and Professional Regulation to qualify, oversee and discipline services for violating the Student Loan Bill of Rights.
  • lecture hallSPRINGFIELD – As the White House rolls back federal protections for student loan borrowers across the nation, the Illinois State Senate sent a clear message Wednesday that it won’t succumb to pressure from loan services and their lobbyists.

    Legislation sponsored by Senator Daniel Biss (D-Evanston) that would establish a student loan bill of rights in Illinois and help to protect students from predatory college lenders passed in the Senate Wednesday.

    “The fact that the student loan industry sent high-powered lobbyists to Springfield to fight against these practical, commonsense protections for middle- and low-income families tells me that we’re on the right track with this legislation,” Biss said.

    “Students are drowning in debt the second they complete their education. It can take decades to dig out from that kind of financial burden, and quite often students quickly fall behind on their payments or end up in default. This is no way to start a life, a career or a family.”

  • college lecture hallSPRINGFIELD – A measure that would protect college students from mounting student loan debt passed the Illinois Senate on Wednesday.

    Senate Bill 1351 establishes the Student Loan Bill of Rights in Illinois to provide as much protection as possible for student borrowers, a population that frequently is targeted by bad actors in the student loan industry.

    State Senator Cristina Castro (D- Elgin), who is a co-sponsor of the legislation, noted how important it is to make sure both transparency and fairness is brought to the student loan lending system.

    “Going to college shouldn’t be the financial burden it has become,” said Castro. “Too often, young people are graduating from universities with crippling debt and have no idea what resources are available to them, or understand their rights as a borrower. This legislation would bring clarity to the process and prevent more young people from defaulting on their loans.”

    The Student Loan Bill of Rights would help to ensure students and their families receive clear information about the money they borrow for higher education and how their student loans are serviced.

    The legislation received significant bipartisan support and now goes to the House for consideration.

  • The Majority Report - May 4, 2018 - Senate pushes for government accountability, protects students