Protecting the Rights of Student Loan Borrowers
Protecting student loan borrowers may not seem like a polarizing issue, but it has caused conflict between federal and state governments in recent months. In response to the lack of federal protections for student loan borrowers, many states have put their own systems in place. However, there has been pushback from the federal government, since many government officials believe that states do not have the right to regulate student loan providers.
The latest to pass a bill protecting borrowers? Massachusetts. If it becomes law, the bill will accomplish three major goals:
1. Require student loan providers to be licensed like any other business
2. Give state officials more power to take action against student loan providers that violate the state’s consumer protection laws
3. Create a Student Loan Ombudsman to collect student loan information and help students understand their loans
While changes to the student loan system are coming, they are not coming quickly enough. Regardless of whether it comes through the federal government or state governments, it is clear that the United States needs a more effective solution to protect student loan borrowers.
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