SPRINGFIELD, Ill. – Student loan servicers will now face clear rules and regulations under a new law backed by state Rep. Silvana Tabares, D-Chicago, who recently voted to override Governor Bruce Rauner’s veto of it.
“Student loan debt is a swelling economic disaster, and some studies have shown that student borrowers are being misled about their repayment options by predatory lenders,” Tabares said. “But now students in Illinois will have protections in place to ensure they aren’t taken advantage of and that they’re able to repay their loans in the most affordable way possible.”
The Tabares-backed Senate Bill 1351 establishes the Student Loan Bill of Rights, creating state level protections for student borrowers by:
- Establishing basic rules and requirements for lenders when processing repayment;
- Prohibiting lenders from engaging in unfair or deceptive business practices;
- Creating a student loan watchdog within the Office of the Attorney General; and
- Requiring all student loan lenders to be licensed by the Department of Financial and Professional Regulation.
“Young people are heading into the workforce with thousands of dollars in debt, and it’s affecting their ability to contribute to our economy like their parents did at their age,” Tabares said. “By vetoing this legislation, Governor Rauner showed Illinoisans who he truly is, an ally to Donald Trump and his administration who puts profits over people.”