Virginia Senate Passes Student Loan Borrowers’ Bill of Rights

Virginia Senate Passes Student Loan Borrowers’ Bill of Rights

From Progress Virginia:

RICHMOND, Va. – By a vote of 40-0, the Virginia Senate today passed Senator Janet Howell’s SB77, the scholar Loan Borrowers’ Bill of Rights.

The legislation shall include education loan servicers like Navient into the variety of financial entities managed by the state’s Bureau of banking institutions. Specifically, the balance prohibits loan servicers from misapplying loan re payments, misrepresenting or material that is omitting in regards to the terms or conditions for the loan, and providing inaccurate information to credit agencies.

Your house type of the balance, sponsored by Delegate Marcus Simon and Delegate Marcia cost, has recently cleared the home.

Navient happens to be sued because of the by the customer Financial Protection Bureau, the American Federation of Teachers, and five states for failing woefully to precisely apply re re payments to borrowers’ accounts, reporting loans wrongly to credit reporting agencies, deceiving borrowers about cosigner launch needs, and pressing borrowers who’re struggling into forbearance in the place of into income-driven payment plans.

“In Virginia, we now have something called the Bureau of banking institutions, which regulates financial providers like banking institutions, credit unions, mortgage brokers as well as payday loan providers, ” said Senator Howell. “Virtually every single other sort of financial obligation is managed in Virginia, except education loan debt. This not enough legislation is egregious considering the fact that we’ve over 1 million borrowers in Virginia that are collectively carrying over $41 billion in education loan financial obligation. Education loan financial obligation can be unique for the reason that it can’t be released in a bankruptcy. Now we can’t replace the federal bankruptcy rules, but we are able to manage these education loan servicers to make sure we’re protecting our borrowers from shady techniques. Continue reading