State legislator from Bowling Green is giving a second chance to convince the General Assembly to pass a comprehensive student loan reform bill.
The measure previously submitted to the 2022 Legislative Session, Democratic Republic Patty Minter will ban fraudulent activities on the part of student loan providers and strengthen oversight of the student loan industry.
V the same account failed to get through during this year’s session.
Minter said her time as a professor of history at Western Kentucky University gave her insight into how predatory lenders target desperate students. She told Public Radio WKU to a former student she knows hasn’t gone to school for ten years, it’s a cautionary tale.
“They paid only $ 700 over 10 years as a loan. The rest is interest, ”a Minter spokesman said. “Because what this man did without knowing it was signing up for a predatory, adjustable-rate student loan that they pay nothing but interest for literally years.”
The bill will also create a state government watchdog position that will track student loan complaints, collect data, and provide the public with reliable information about student loans.
Minter notes that more than a dozen other states have passed similar bills to protect student loan borrowers and their families.
“Right now, it is perfectly legal to engage in fraudulent, deceptive, or illegal student loan lending practices in this state,” Democrat Bowling Green said.
The 2022 Kentucky General Assembly will take place in early January.