CAIN BILL TO INCREASE COLLEGE AFFORDABILITY BECOMES LAW

AUGUSTA – Today, a bill sponsored by Senator Emily Cain (D-Orono) to allow the Finance Authority of Maine (FAME) to provide loan insurance on private student loans became law.

Senator Cain brought forward the bill on behalf of FAME, which will now partner with Maine credit unions and banks to offer another option to help students fund their education.

“This bill creates another tool in the toolbox for Maine students and their families,” said Senator Cain. “Instead of relying on big, out-of-state firms, Maine’s credit unions and banks will now be able offer the quality student loan insurance option that our students need.”

FAME has been involved in administering and financing higher education programs since 1990, and already offers loan insurance on commercial loans. The bill requires borrowers to undertake financial education so that they will understand the debt they are assuming. The product will be available for the 2013-2014 academic year.

The emergency bill was passed with overwhelming bipartisan support in the House and Senate earlier this month and became law at 12:01 a.m. this morning without the signature of the governor.

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