Crespo: Gov. Rauner’s Veto Helps Companies Get Rich off the Backs of Students

SPRINGFIELD, Ill. –State Rep. Fred Crespo, D-Hoffman Estates, responded to Gov. Bruce Rauner vetoing legislation that would’ve protected student borrowers from loan servicers who mislead borrowers about the options available to avoid default and lower their monthly payments.

“More than 43 million Americans owe a total of $1.3 trillion in student debt, and several studies show that borrowers often don’t know about programs designed to lower their monthly payments,” Crespo said. “That is why earlier this year, I supported a vital piece of legislation that would’ve ensured less young people default on their loans and ruin their credit.”

Crespo backed Senate Bill 1351, which would have created state level protections for students 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 be licensed by the Department of Financial and Professional Regulation.

However, the legislation was vetoed by Gov. Bruce Rauner.

“Today’s college graduates are heading into the workforce with thousands of dollars in debt, and it’s affecting their ability to buy a home and contribute to our economy like their parents did at their age,” Crespo said. “Student loan debt is a swelling economic disaster, so it’s infuriating that Gov. Bruce Rauner decided to stand alongside President Trump and Secretary of Education Betsy DeVos by making it easier for lenders to exploit and make money off students struggling to repay their loans.”

Crespo represents the 44th District, which includes all or portions of Bartlett, Elgin, Hanover Park, Hoffman Estates, Schaumburg and Streamwood.