Published: August 2020

State-based “bills of rights” needed to protect student loan borrowers

Consumer Action joined a coalition of over 50 organizations in support of a Student Loan Borrower Bill of Rights in Massachusetts. (We also supported a similar effort that recently passed the California legislature.) Even before the current pandemic, student loan borrowers have had to deal with a predatory student loan servicing industry that knowingly misleads borrowers to increase its profits. With the increased financial instability brought by the pandemic, it’s more important than ever that borrowers are informed of their rights and are protected by strong consumer guidelines.

Student loan servicing is widely viewed as problematic. Multiple state attorneys general have brought lawsuits against major federal student loan servicers alleging widespread misconduct. Referred to as a student loan borrower “bill of rights,” the new law in MA would establish enforceable, statewide industry standards for student loan servicers and protects student loan borrowers against unfair, deceptive, and predatory practices by servicers and lenders. In tumultuous times, taking action to defend students defrauded or deceived by student loan companies is more critical than ever.

Lead Organization

Hildreth Institute

Other Organizations

Consumer Reports | Consumer Action | Generation Progress | MASSPIRG | NextGen | PHENOM | Partners for College Affordability & Public Trust | Student Borrower Protection Center | Student Debt Crisis | Veterans Education Success | Young Invincibles

More Information

To view the full list of coalition members and to read the letter in full, click here.

For more information, please visit the Hildreth Institute.

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