BY Bob Katzen
The Education Committee held a hearing on legislation that would create a Student Loan Bill of Rights and require student loan servicers to be licensed by the state just like any other business. The measure allows state officials to investigate student loan servicers and act against those that violate the state’s banking and consumer protection laws. A key provision creates a Student Loan Ombudsman that will collect state student loan data and information and help students understand their rights and responsibilities in loan agreements.
“We have nearly 900,000 student debt borrowers in Massachusetts who, on average, owe $39,000 each,” said Sen. Eric Lesser (D-Longmeadow) the sponsor of the proposal. “This is crowding out other elements of our economy, and it is a poison on an entire generation’s ability to participate in this economy fully. Student debt is a problem that demands solutions, and this bill is one solution to helping borrowers get fair treatment in managing these loans,” concluded Lesser.