(NNPA)—In the aftermath of a recent report that found the lack of student loan servicing standards and information on monies owed, two U.S. Senators will work as a team to create a Student Loan Borrower Bill of Rights.
Sponsored by Illinois Sen. Richard Durban and co-sponsored by Sen. Elizabeth Warren of Massachusetts, the measure is intended to ensure that all student loan borrowers fully understand the range of repayment options and resources available to them. For service members and veterans, the measure would require loan servicers to provide each borrower with a liaison specifically trained in the benefits available to military borrowers. Thirdly, the bill calls for fair treatment of borrowers by the financial institutions servicing their loans.
“With student loan debt far outpacing the rise in starting salaries, many of these borrowers find they are unable to make their monthly payments,” said Durbin. “When lenders refuse to work with them on a repayment plan, they begin a downward spiral that is difficult to turn around. That debt keeps them from being able to purchase homes, cars or other goods which fuel our economy…Every borrower should have basic protections when it comes to their student loans.”