Virginia Senate Passes Student Loan Borrowers’ Bill of Rights

Virginia Senate Passes Student Loan Borrowers’ Bill of Rights

From Progress Virginia:

RICHMOND, Va. – by way of 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 set of monetary entities controlled by the state’s Bureau of finance institutions. Especially, the balance forbids loan servicers from misapplying loan re payments, misrepresenting or omitting product information in regards to the terms or conditions for the loan, and providing inaccurate information to credit reporting agencies.

The home form of the bill, sponsored by Delegate Marcus Simon and Delegate Marcia cost, has recently cleared your house.

Navient happens to be sued because of the by the customer Financial Protection Bureau, the United states Federation of Teachers www.paydayloanstennessee.com, and five states for failing continually to precisely use re re payments to borrowers’ accounts, reporting loans improperly to credit reporting agencies, deceiving borrowers about cosigner launch demands, and pressing borrowers who will be struggling into forbearance as opposed to into income-driven payment plans.

“In Virginia, we now have something called the Bureau of banking institutions, which regulates economic providers like banking institutions, credit unions, lenders as well as payday loan providers, ” said Senator Howell. “Virtually almost every other types of financial obligation is controlled in Virginia, except education loan financial obligation. This not enough legislation is egregious considering that we’ve over 1 million borrowers in Virginia who’re 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. Continue reading Virginia Senate Passes Student Loan Borrowers’ Bill of Rights