“The House Financial Services Committee this week advanced a package of bills to establish critical new consumer protections for both federal and private student loan borrowers.
“These bills will enable colleges to counsel students before they take on often-unnecessary private loans – which offer fewer protections than federal loans – and require private lenders to discharge loans for both the student and co-signer if the student dies or becomes severely disabled.
“The bills also protect all borrowers from mandatory arbitration requirements and class action bans, end punitive wage garnishment for federal loan borrowers, and set improved standards for federal loan servicing. These new standards will ensure that contractors provide high-quality service to borrowers, including through properly applying payments, responding to inquiries in a timely manner, and clearly disclosing deadlines and late fees.
“We applaud Chairwoman Maxine Waters for her continued leadership to ensure increased protections for the millions of Americans who hold student loan debt.”
The Institute for College Access & Success is a trusted source of research, design, and advocacy for student-centered public policies that promote affordability, accountability, and equity in higher education. For more information see www.ticas.org or follow us on Twitter and Facebook.