Andrade Backs Legislation Protecting Student Loan Borrowers

SPRINGFIELD, Ill. – To protect students and student loan borrowers from predatory lending practices, state Rep. Jaime Andrade, D-Chicago, helped pass legislation that creates a Student Loan “Bill of Rights” in Illinois.

“As a recent college graduate myself, I understand the severe burden that student loans can place on students in Illinois,” Andrade said. “With the cost of college degrees increasing every year, predatory student loan companies have stepped in and begun taking advantage of students. Other industries are regulated to protect consumers and there’s no reason that student loan lenders shouldn’t be as well. This proposal will put in place similar protections to help ensure students are not saddled with unfair loans.”

Andrade sponsored and voted to pass 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.

“A college education should not condemn students to a lifetime of debt,” Andrade said. “Protecting students from predatory loans will help them not only pursue their academic dreams, but also give a boost to the economy as young people will have more discretionary income and be more likely to purchase a house or start a family.”