Last week, senators Senator Barbara Boxer (D-CA), Dick Durbin (D-IL), Elizabeth Warren (D-MA) and Jack Reed (D-RI) announced the Student Loan Borrower Bill of Rights.
The purpose of this bill is to help out struggling student loan borrowers and ensure that they are treated fairly and that they understand the full range of repayment options and resources that are available to them.
The Senators have taken notice of the growing mountain of student debt and wanted to step in and help borrowers out. This is because student loan borrowers are having increasing problems in making their monthly payments. This bill will offer borrowers access to protections and basic rights.
This new student rights bill for borrowers is made of up six basic rights. Those rights are as follows:
The right to have options such as alternative payment plans to avoid default.
• The right to be informed about key terms and conditions of the loan and any repayment options to ensure changing plans won’t cost more.
• The right to know your loan’s servicer and who to reach out to when there is a problem.
• The right to consistency when it comes to how monthly payments are applied. Lenders and servicers should also honor promotions and promises that are advertised or offered.
• The right to fairness, like grace periods when loans are transferred or debt cancellation when the borrower dies or becomes disabled.
• The right to accountability, including timely resolution of errors and certification of private loans.
Special attention is paid to borrowers who are servicemember and veteran borrowers. This special focus states that loan servicers are required to provide each borrower with a liaison specifically trained in the benefits available to military borrowers.