[Congressional Record Volume 163, Number 187 (Wednesday, November 15, 2017)]
[Senate]
[Page S7256]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ILLINOIS STUDENT LOAN BILL OF RIGHTS
Mr. DURBIN. Mr. President, last week my home State of Illinois took a
major step forward in protecting student loan borrowers.
On November 7, the Illinois House of Representatives voted 98 to 16
to override Governor Rauner's veto of the Illinois Student Loan Bill of
Rights, which was designed to protect student loan borrowers from the
well documented abuses of Federal student loan servicers. The Illinois
Senate previously voted 37 to 19 to override. With the house's action,
the bill became law.
I would like to thank all of those in the general assembly who voted
for this bill, including Senator Daniel Biss and Representative Will
Guzzardi, who sponsored the legislation. I would also like to thank the
legislation's author, Attorney General Lisa Madigan, for her leadership
and tireless efforts to investigate and hold Federal student loan
servicers accountable.
Federal student loan servicers are contracted by the U.S. Department
of Education to handle the billing and other services related to the
repayment of a Federal student loan. Too often, these contractors make
it more difficult for students to repay their loans by giving them
incorrect or incomplete information and guidance, refusing to provide
benefits to which students are entitled under Federal law, or
incorrectly processing payments. I have heard complaints about
servicers from countless of the 1.5 million Illinoisans holding a
cumulative total of $51 billion in Federal student loan debt.
Attorney General Madigan has heard those complaints too. In response,
she initiated an investigation which resulted in an ongoing lawsuit
against the Nation's largest student loan servicer, Navient. Navient
has become the poster child for poor customer service and abusive
practices that make it more difficult for struggling borrowers to repay
their Federal student loans.
The Illinois Student Loan Bill of Rights will help to protect
Illinois borrowers from these practices. Among other things, the law
requires servicers to inform borrowers about their eligibility for
income-driven repayment plans and other affordable repayment options.
It also prohibits servicers from misleading borrowers, requires them to
correctly process payments, and requires servicers to inform borrowers
about their eligibility for loan forgiveness due to a disability or
harmful actions by the school.
I have worked at the Federal level to provide similar protections for
all student loan borrowers. I authored the Federal Student Loan
Borrower Bill of Rights, which I will reintroduce in the coming months.
This bill was the basis for reforms to student loan servicing contracts
initiated by President Obama. Unfortunately, much of that work has been
rolled back by Secretary Betsy DeVos.
Thanks to Attorney General Madigan and the bipartisan actions of the
Illinois General Assembly, borrowers in our State will now have new
rights and protections that neither Governor Rauner nor Secretary DeVos
can take away.
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