From Progress Virginia:
RICHMOND, Va. – By a vote of 40-0, the Virginia Senate passed Senator Janet Howell’s SB77, the Student Loan Borrowers’ Bill of Rights today.
The legislation shall include student loan servicers like Navient to your a number of economic entities controlled by the state’s Bureau of banking institutions. Particularly, the balance forbids loan servicers from misapplying loan re re re payments, misrepresenting or material that is omitting in regards to the terms or conditions of this loan, and supplying inaccurate information to credit reporting agencies.
Your house type of the bill, sponsored by Delegate Marcus Simon and Delegate Marcia Price, has recently cleared your house.
Navient happens to be sued by the by the customer Financial Protection Bureau, the American Federation of Teachers, and five states for failing continually to precisely apply payments to borrowers accounts that are’ reporting loans improperly to credit reporting agencies, deceiving borrowers about cosigner launch needs, and pressing borrowers that are struggling into forbearance in place of into income-driven payment plans.
“In Virginia, we now have something called the Bureau of banking institutions, which regulates providers that are financial banks, credit unions, mortgage brokers and also payday loan providers, ” said Senator Howell. “Virtually every single other sort of financial obligation is controlled in Virginia, except education loan financial obligation. This not enough legislation is egregious considering that we now have over 1 million borrowers in Virginia that are collectively carrying over $41 billion in education loan financial obligation. Education loan financial obligation can be unique in that it can’t be released in a bankruptcy. Now we can’t replace the federal bankruptcy rules, but we are able to control these education loan servicers to make sure we’re protecting our borrowers from shady techniques. ”
“As a real-estate attorney, I’ve directly seen just just how education loan financial obligation is preventing millennials from purchasing homes, ” said Delegate Simon. “The education loan crisis is harmful to the economy, detrimental to borrowers, and harmful to every person. We’ve been attempting to pass this bill for 5 years. It really is a day that is good Virginians that have sought to raised their everyday lives through training. ”
“As a Virginian with education loan financial obligation myself, i know can verify why this bill is very important, ” said Delegate cost. “We come in a student debt crisis. All borrowers, including very first generation university pupils and borrowers from communities of color, deserve accurate information on their loans. We wish Virginians to buy their training and may they require a loan to do this, we wish that it is in a good and clear procedure. ”
“Progress Virginia happens to be advocating because of this long-overdue legislation for years, ” said Anna Scholl, executive manager of Progress Virginia. “We all understand advanced schooling is key into the United states Dream, but that fantasy continues to be away from reach for an incredible number of Us citizens saddled by education loan financial obligation. The Student Loan Borrowers’ Bill of Rights may help Virginians make more decisions that are informed their loans in order to get free from debt faster. ”
“My first experience with Navient had been whenever I ended up being 18 years old, ” said Katlyn Weiser, that is preparing to graduate from George Mason University. “I happened to be completing my year that is freshman in whenever my neighbor advised if you ask me that we begin considering my future repayment plan. To begin with, I’d never heard about a loan servicer. Offered my status as a first-generation scholar, I became really by myself in navigating these confusing, and the things I would quickly learn how to be, predatory waters. The representative we talked to straight away suggested forbearance, another term by which we hadn’t heard about. It appears great the colorado guaranteed payday loans theory is that, especially to an 18 yr old. There is certainly a real means that we won’t need to spend those loans appropriate away from university? Yes, signal me up. Luckily for us I would come to learn that forbearance was not the best option for me. But unfortuitously, for many pupils in my own situation, they trust their servicer and discover by themselves trapped in this devastating situation. ”
“Borrowers should certainly seek out their loan servicers to comprehend the regards to their loans, but i really could not need navigated that procedure minus the help of my union, ” said Alexa Severo, a teacher that is second-grade Sugarland Elementary in Sterling whom holds levels from Christopher Newport University and George Mason University. “When servicers aren’t transparent, low-income and very first generation university pupils, whoever moms and dads might not have the information or experience to greatly help navigate the machine, disproportionately suffer. This legislation helps individuals anything like me obtain the information they must result in the most useful choices about their loans in order to escape financial obligation faster. ”
“For too much time, education loan servicers have already been mostly unregulated, and borrowers were having to pay the cost, ” said Jared Calfee, executive manager of Virginia21. “Students of all of the many years and backgrounds may have their future compromised by crippling financial obligation, as soon as their loans are mismanaged, the negative effect can be permanent. ”
“This legislation can help focus on the passions of educators over loan servicers, ” said Tina Williams, president of Fairfax County Federation of Teachers. “Educators in Virginia face barriers that are many going into the field and females and individuals of color are among the very very first to be targeted by loan servicers. This bill will balance the playing field to assist our general general public schools recruit and retain a diverse and equitable pool of educators. ”
“It is vital that Virginia correctly control student loan servicers who is able to make or break the economic future of over a million Virginians, ” said Jay Speer, executive director for the Virginia Poverty Law Center.
“As Betsy DeVos and also the Trump Administration prioritize the earnings of education loan organizations at each change, over one million Virginians struggling to settle their student education loans happen left to fend for by by themselves, ” said Seth Frotman, executive manager associated with the scholar Borrower Protection Center. “Virginia pupil loan borrowers deserve a Borrowers’ Bill of Rights. ”
A coalition of groups whom advocated for the bill in January circulated a study from the state of education loan financial obligation in Virginia. The report noted that one or more million Virginians owe over $41 billion in education loan debt.