Legislation would give commerce commissioner oversight authority.
Seeking to address a student debt crisis totaling nearly $2 trillion nationally, a bipartisan pair of Minnesota lawmakers want to enshrine protections for borrowers into state law.
Rep. Zack Stephenson, DFL-Coon Rapids, and Sen. Zach Duckworth, R-Lakeville, unveiled a “Student Borrowers Bill of Rights” on Monday that would require student loan servicers operating in Minnesota to be licensed through the Department of Commerce. The measure would give the commerce commissioner power to suspend or revoke the licenses of servicers that mislead borrowers or misrepresent payments.
“There’s a confusing labyrinth of repayment plans, forbearance options, refinancing opportunities,” Stephenson said. “If a borrower makes even the slightest misstep, they can watch their debt balloon out of control and see themselves suddenly become ineligible for forgiveness programs that they may have planned their entire education around.” Continue reading.