State officials launch push for student loan bill of rights
By: Jennifer McDermott, Associated Press
PROVIDENCE, R.I. (AP) _ Rhode Island’s treasurer and attorney general want a “student loan bill of rights” to protect borrowers from deceptive lending practices.
Treasurer Seth Magaziner and Attorney General Peter Neronha announced a bill Thursday that would set standards for student loan servicing to prohibit predatory behavior and require services to allow regulators to examine their business practices.
The state could penalize services that violate standards.
The Democratic leaders join a growing movement among states seeking to protect those who take out such loans.
Connecticut’s student loan bill of rights has been picked up by other statehouses.
Magaziner says borrowers too often don’t receive accurate information that can result in higher interest rates, leave them in debt longer and make them more likely to default.
© WLNE/ABC 6 2019