AUGUSTA- With billions of dollars on the line, Maine legislators are tackling the student loan crisis.
One senator is pushing back against companies servicing student loans with a bill to help those in debt.
“Whether federal or private, student loans borrowers of all ages report difficulty getting the information they need. Accurate, timely, honest information to enable them to responsibly pay their loans and satisfy their obligations,” said Sen. Eloise Vitelli.
Vitelli’s bill has support from Seth Frotman, executive director and founder of the Student Borrower Protection Center.
“So what Senator Vitelli’s bill does is empower the state of Maine to make ensure the student loan borrowers in the state are getting the rights and protections that they are entitled to to better manage their student debt,” he said.
According to Frotman, the bill ensures public servants are able to get connected to public service loan forgiveness programs.
Plus, he said, the bill would help debt-laden students get into affordable repayment plans.
Frotman said loan service companies like Navient and FedLoan Servicing add insult to injury with late fees and increased interest rates.
“What you see is not only ever-increasing debt loads, it’s that student loan borrowers are struggling because the companies that are supposed to help them manage this debt is falling asleep at the wheel,” Frotman said.
This bill now will works its way through the legislative process before it heads to the Maine Senate and House of Representatives for final consideration.