SCHAUMBURG, Ill. – A new measure designed to protect students from predatory lending practices, supported by state Rep. Michelle Mussman, D-Schaumburg, will soon become law thanks to bipartisan efforts in the legislature.
“Many students borrow large amounts of money just to be able to afford an education,” Mussman said. “As the cost of higher education continues to rise, the least we can do is provide additional protections that will defend them against predatory lending services that seek to take advantage of students just trying to build upon their education.”
Senate Bill 1351 lays the groundwork for a ‘Student Loan Bill of Rights,’ also establishing a Student Loan Ombudsman within the Office of the Attorney General to assist students with any questions about the loan servicing process. By giving the Attorney General authority to assist in the process, student loan providers are now mandated to file and receive licensure from the Department of Financial and Professional Regulation to mitigate unfair and unjust business practices.
“I’m proud to have supported this bill with my colleagues in the House in order to uplift students to achieve their professional goals,” Mussman said. “It should always be our priority to expand students’ access to educational opportunities, and that begins by holding lenders to a higher ethical standard.”