The proposed Bill of Rights would help protect and assist the nearly 130,000 student loan borrowers in Delaware. (Photo by designer491/Getty Images)
Laws that would establish a Bill of Rights for student loan borrowers and adjust the transfer of leave days for educators garnered support in a Senate Education Committee hearing Wednesday.
Senate Bill 132 , sponsored by Sen. Sarah McBride, D-Wilmington, would make Delaware the 19th state to have a Bill of Rights for student loan burrowers.
Of the 18 states who already have such, 12 have a student loan ombudsperson – which is essentially an advocate who can help with resources, disputes and assist legal matters – and 13 have a licensing program, with another two states having a registration program instead of a licensing program.
The Student Loan Borrower Bill of Rights would:
- Require student loan servicers to engage in certain practices related to communications with student loan borrowers and cosigners of student education loans and handling of transactions by student loan borrowers and cosigners of student education loans.
- Prohibit student loan servicers from engaging in certain practices including unfair or deceptive practices or abusive practices.
- Require student loan servicers to retain records related to student loan transactions for seven years and to yearly report non-identifying information about student education loans serviced in Delaware, including default and delinquency rates, to the student loan ombudsperson.
- Establish the Office of the Student Loan Ombudsperson which will receive, investigate, attempt to resolve complaints from student loan borrowers and more.