A Student Loan Bill of Rights

In an effort to address the ongoing student loan crisis, Connecticut has become the first state to enact a student loan bill of rights. This law will serve as way to more closely monitor the lenders in this industry, as well as provide student borrowers with necessary education and resources.

The law creates a Student Loan Ombudsman who will resolve complaints, analyze data, and provide more education to borrowers. Education courses will be created for borrowers so they are better able to understand their rights and responsibilities associated with the debt.

It is abundantly clear that we need more education on student loans, but we also need to shut down unscrupulous lenders and education institutions. This law will provide a centralized way to do just that.

Borrowers must be better informed about their rights and options so they can make sound financial decisions as they embark on the path to higher education. This law is a good example of what can be done at the state level to better understand and address the problem of runaway student loan debt.

Hopefully other states will follow Connecticut’s lead. The student loan crisis will not solve itself and it’s critical that the government start taking action to find workable solutions to a problem that has the potential to affect the lives of tens of millions of Americans.

 

RG-3Rachel Gallegos

Lead Consumer Advocate, Steve Harvey Law