Lawmaker introducing student loan reform proposal
FRANKFORT, Ky. (WTVQ) – Democratic State Rep. Patti Minter, of Bowling Green announced Monday she is introducing the Student Loan Borrower Bill of Rights, the first comprehensive student loan reform bill in Kentucky.
Minter’s bill, House Bill 239, would tackle predatory lending from big student loan servicers by banning deceptive practices, increasing oversight, and requiring more transparency.
“As a professor, I’ve seen how massive student loan debt is holding our people back, and the pandemic and economic fallout has made it even worse,” said Minter. “I’m introducing the Student Loan Borrower Bill of Rights because we need tough, transparent, and accountable oversight to make sure students and their families can make informed financial decisions. Student loan servicers shouldn’t be able to trick people into paying more than they should.”
Minter introduced the bill with primary cosponsor State Rep. Attica Scott of Louisville, who has been vocal about the student loan debt she continues to pay off.
More than a dozen states have enacted similar bills to protect borrowers and their families, including neighboring states Virginia and Illinois.
Key components of the Student Loan Borrower Bill of Rights:
Create a watchdog official to track student loan complaints, collect data, and provide helpful student loan information to the public
Ban fraudulent, deceptive, or abusive student loan lending practices
Require that borrowers be fully informed of their repayment options
Protect borrowers from coercive credit reporting practices
Limit the amount of time a payment can be processed
Allow borrowers to sue student loan services engaged in prohibited behavior and provide enhanced remedies