Vitelli’s Student Loan Bill of Rights unanimously enacted by Senate
A bill from Sen. Eloise Vitelli, D-Arrowsic, to protect Maine student loan borrowers from predatory lending practices was unanimously enacted by the Maine Senate on Monday. LD 995, “An Act To Establish a Student Loan Bill of Rights To License and Regulate Student Loan Servicers,” has now been sent to Gov. Janet Mills, who has 10 days to sign it into law, veto it, or allow it to become law without her signature.
“It is unacceptable that right now, student loan borrowers in Maine who are trying to pay down their student loan debt are being blocked, mislead, manipulated, or being lied to by their loan servicers,” said Sen. Vitelli. “We need to make sure that student loan borrowers in Maine have protection from unscrupulous loan services, and LD 995 provides the oversight needed to ensure that protection.”
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.