Scherer: Students Deserve Protection from Predatory Loan Companies

SPRINGFIELD, Ill. – State Rep. Sue Scherer, D-Decatur, is calling for an override of Gov. Bruce Rauner’s veto of an initiative from the Attorney General’s office that would establish a Student Loan Bill of Rights and other safeguards to protect students from predatory lenders.

“The reforms in this bill would assist student loan borrowers and their families trying to navigate the confusion of the student loan marketplace,” Scherer said. “It disappoints me that the governor decided to side with lenders over our students.”

Scherer co-sponsored Senate Bill 1351, which in addition to establishing a Student Loan Bill of Rights, also creates a Student Loan Ombudsman within the Office of the Attorney General to assist students with any questions about the loan servicing process. The legislation also allows the Attorney General to enforce provisions that prohibit student loan servicers from engaging in unfair business practices. Finally, the legislation requires that all student loan vendors be licensed by the Department of Financial and Professional Regulation. Rauner’s veto of this legislation now jeopardizes these protections for students.

“These protections would improve the financial security of young people who are pursuing an education,” Scherer said. “I’m encouraging my colleagues on both sides of the aisle to come together to override the governor’s veto and block student loan services from taking advantage of our students.”

Scherer represents the 96th District, which includes portions of Christian, Macon and Sangamon counties.