Legislator presents reform proposal for student loans

FRANKFORT, Kentucky (WTVQ) – Democratic State Representative Patti Minter of Bowling Green announced Monday that she is introducing the Student Loan Bill of Rights, Kentucky’s first comprehensive student loan reform bill.

Minter’s bill, House Bill 239, would combat predatory lending by large student loan providers by banning fraudulent practices, strengthening oversight and demanding more transparency.

“As a professor, I’ve seen massive student loan debt holding our people back, and the pandemic and economic fallout made it worse,” Minter said. “I’m introducing the Student Loan Bill of Rights because we need strong, transparent, and accountable oversight to ensure that students and their families can make informed financial decisions. Student loan providers shouldn’t be able to get people to pay more than they should. “

Minter introduced the bill along with primary co-sponsor, Louisville State Rep. Attica Scott, who spoke loudly about the student loan debt that she continues to pay off.

More than a dozen states have similar laws in place to protect borrowers and their families, including neighboring Virginia and Illinois.

Main Components of the Borrower’s Fundamental Rights for Student Loans:

  • Create a watchdog to track student loan complaints, collect data, and provide helpful student loan information to the public

  • Prohibiting fraudulent, fraudulent, or abusive lending practices for students

  • Require that borrowers be fully informed of their repayment options

  • Protect borrowers from enforced credit reporting practices

  • Limit the time a payment can be processed

  • Enable borrowers to sue student loan services for engaging in prohibited behavior and provide advanced legal remedies

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