Legislator proposes rights bill for student loan borrowers

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Tom Latek, Kentucky today

FRANKFORT, Kentucky (KT) – A bill is proposed for the 2022 regular session of the General Assembly that will establish the Student Loan Borrower Rights Bill.

Rep. Patty Minter, D-Bowling Green, professor of history at Western Kentucky University, says her measure will combat the predatory lending practices of large student loan companies by banning fraudulent practices, increasing oversight and requiring more transparency.

“College students and their families deserve complete transparency so that they can make informed decisions on their loans,” Minter said. “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. “

Key provisions of the bill include:

– Establish a supervisory body to track student loan complaints, collect data, and provide the public with useful information about student loans.

– Prohibiting fraud, deception or abuse in student loan lending.

– Requiring borrowers to be fully informed about their repayment options.

– Protection of borrowers from the practice of forced credit reporting.

– Limiting the processing time of the payment.

–Allowing borrowers to sue student loan services that engage in prohibited behavior and provide extended remedies.

Its main co-author is Rep. Attica Scott from Louisville, who has repeatedly spoken out about the student loan debt 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 a Bill of Rights for Student Loan Borrowers during the 2021 legislative session, but the committee did not listen to it.

This 35-page measure is currently called Bill Request 96 and can be read here:

https://apps.legislature.ky.gov/record/22rs/prefiled/BR96.html



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