Durbin Calls For Student Loan ‘Bill Of Rights’
Career College Central summary:
Calling student loan debt “a serious challenge,” U.S. Sen. Dick Durbin and two other senators said last week they are proposing a package of bills to protect the rights of student borrowers and address not only the amount of debt but also the default rate on education loans and rising college costs.
Durbin, a Springfield Democrat, noted that accumulated student loan debt has reached $1.2 trillion — surpassing credit card debt and second only to mortgages, in terms of household debt. He argued that debt not only hurts students, it hurts the economy.
Durbin was joined in a call-in news conference by two other Democratic senators, Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts. All three, plus Sen. Barbara Boxer, D-Calif., introduced a bill Dec. 11 which would establish a Student Loan Borrower Bills of Rights.
The measure, S 1803, would apply to both federal and private student loans. Its requirements include informing borrowers about key terms, conditions and repayment options and providing a grace period when loans are transferred.
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