Legislator Introduces Bill of Rights to Student Loan Borrowers

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Frankfort, Kentucky (WTVQ) – As classes begin at Kentucky colleges and universities, Rep. Patty Minter announced Tuesday that she is tentatively submitting the Student Loan Borrowers Bill of Rights, Kentucky’s first comprehensive student loan reform bill. Legislative session 2022.

The bill, now called BR 96, aims to tackle predatory lending by large student loan providers by banning fraudulent practices, strengthening supervision and requiring greater transparency.

“College students and their families deserve complete transparency so they can make informed decisions about their loans,” said Minter, representing House District 20 in Bowling Green. “With this bill, student borrowers can know that their state government is backing them. No one should be deceived into paying more than they should, just in order to afford a higher education. “

Minter, professor of history at Western Kentucky University, is introducing the bill with Louisville State Representative Attica Scott, whose main co-founder is student loan debt, which she continues to repay.

More than a dozen US states have passed similar bills to protect borrowers and their families, including the neighboring states of Virginia and Illinois. Minter previously filed the bill during the 2021 legislative session.

Key components of the Bill of Rights for Student Loan Borrowers:

  • Create a watcher to track student loan complaints, collect data, and provide useful information about student loans to the public.

  • Prohibit fraudulent, deceptive or inappropriate methods of issuing student loans

  • Require borrowers to be fully informed of repayment options

  • Protect Borrowers From Compulsory Credit Reporting Practices

  • Limit payment processing time

  • Allow borrowers to sue student loan services that engage in prohibited behavior and provide extended remedies

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