State Legislators Call for Funding for Student Loan Consumer Assistance Program
|Senator Sanders joined his legislative colleagues in calling for $1 million in the budget to launch a student loan consumer assistance program.|
ALBANY, NY - Today a group of New York State lawmakers, led by the respective chairs of the Senate and Assembly Banks Committees, and the chair of the Senate Consumer Protection Committee, cited findings from of a recent U.S. Department of Education Inspector General report in calling for the creation of an independent, statewide student loan consumer assistance program, including a toll-free “Help Line,” to assist borrowers in New York fight back against deceptive student loan industry practices.
Under the Trump Administration, protections for student borrowers have been steadily eroded. Last year, the student loan ombudsman at the federal Consumer Financial Protection Bureau resigned to protest sweeping changes at the Bureau that he said protected “the interests of the biggest financial companies in America” to the detriment of borrowers.
As the federal government has retreated from its oversight and enforcement responsibilities, states have had to step in with legal action against loan servicers who mislead borrowers, illegally drive up repayment costs and make serious errors in the processing of student loans. Only a few months ago, a lawsuit filed by the New York Attorney General resulted in a $9 million settlement against Conduent Education Services for misleading borrowers in New York State.