A bill has been filed in the Massachusetts State Legislature that would create a “Student Loan Bill of Rights.” This legislation has the potential to provide student loan borrowers here in Massachusetts with powerful new protections from student loan servicers. The bill is sponsored by Senator Eric Lesser and Rep. Natalie Higgins.
Here are some of the bill’s highlights:
- Student loan servicers would be required to register with the state and pay a licensing fee.
- Student loan servicers that are subject to oversight would be prohibited from engaging in unfair, deceptive, or abusive practices common in the student loan industry, such as misapplying payments or supplying misinformation.
- Student loan borrowers would be provided with the right to file a lawsuit against student loan servicers who violate the bill of rights.
- The state would also establish an Ombudsman position to monitor student loan servicing and help student loan borrowers obtain out-of-court resolutions to their servicing issues.
This bill has the potential to give student loan borrowers important new tools to make student loan repayment fairer and more transparent. And with federal oversight of student loan servicing in question following the recent presidential election, state-level protections are going to become that much more important.
If you live in Massachusetts, call your State Senator and State Representative and ask them to support the Student Loan Bill of Rights (you’ll need to reference the Senate Docket Number, S.D. 1229). If you don’t know who your representatives are, click here to find out.