SPRINGFIELD, Ill. – To tackle the student debt crisis, state Rep. Katie Stuart, D-Edwardsville, sponsored a bill that increases accountability for private loan companies and helps students make informed decisions about the loans they take to pay for college.
“Students are graduating with higher levels of student debt than in the past as private loan companies are taking advantage of students ultimately increasing their loan debt,” said Stuart. “My law helps students to take advantage of all available federal student loans before needing to take more expensive private loans.”
Stuart sponsored House Bill 2746, the Know Before You Owe Private Education Loan Act, which requires private lenders to confirm with a potential borrower’s school that the student’s tuition, housing, and other costs are not already covered by other sources of financial aid. The bill additionally requires that institutions inform students of all their federal loan eligibility before certified private loans. The governor signed Stuart’s measure into law on Aug. 26.
“This law will help students to make wiser financial decisions by taking their federal student loans, which can provide better benefits than private loans,” continued Stuart. “I am proud to have passed this bipartisan law and take a step toward combating our student loan crisis.”