Vitelli’s Student Loan Bill of Rights receives unanimous Senate approval
A bill from Sen. Eloise Vitelli, D-Arrowsic, to protect Maine student loan borrowers from predatory lending practices received unanimous, bipartisan approval from the Maine Senate on Friday. LD 995, “An Act To Establish a Student Loan Bill of Rights To License and Regulate Student Loan Servicers,” now faces further votes in the Maine Senate and House.
“Student loan borrowers across Maine and the country who are actively trying to pay down their school debt are being blocked, mislead, manipulated or flat-out lied to by their loan servicers. This is unacceptable,” said Sen. Vitelli. “It’s clear to me that Maine needs to make sure these companies have proper oversight to help protect borrowers. LD 995 provides that oversight, and I’m glad it is moving forward with such strong support from my colleagues.”
Sen. Vitelli’s Student Loan Bill of Rights would establish a system for the state to oversee student loan servicers who do business in Maine. The bill creates a registration procedure for lenders, requires lenders to comply with federal law and identifies prohibited acts for lenders — including misleading student loan borrowers and fraud. It also allows state officials to investigate student loan servicers.
Maine already oversees other loan servicers, including mortgage lenders and payday lenders.