OLYMPIA, Wash. – Washington state lawmakers are considering a bill to hold student loan providers accountable for their services.
Passed in the House last week, the Senate is considering the Student Loan Bill of Rights.
House Bill 1440 gives students protections as consumers of loan services, and also establishes a student loan ombuds to advocate for students and resolve loan issues.
Rep. Monica Stonier, who sponsored the bill in the House, says an ombuds will be able to help students navigate the questionable practices of some loan providers.
"The ombud can provide that kind of information about what still needs to be fixed in the law in order to ensure that loan servicers are compliant, and providing an acceptable level of customer service and transparency to loan borrowers," she explains.
The legislation comes at the request of Attorney General Bob Ferguson. It is currently in the Senate Higher Education Committee.
Similar bills have passed in California, Connecticut and Washington, D.C.
Stonier says the attorney general requested legislation after receiving hundreds of complaints from student borrowers and eventually filing a lawsuit against Navient, the largest student loan servicer in the country.
Borrowers have complained about a lack of information for payment options, and accruing late fees even when they didn't miss the payment.
Stonier points out that failing to pay loans can have serious consequences for students, hampering their ability later in life to buy a car or home.
"They're nervous about the level of debt that they're going to have when they graduate,” she states. “And to be able to pay it with a basic level of service and acceptable best practice from their loan servicers is something that they recognize could have a continuing negative impact on their credit if that isn't resolved."
The attorney general also requested Senate Bill 5022, which requires colleges to provide information to students about their loan balances and monthly payments within 30 days of receiving the loan. It passed the Senate unanimously and is now in the House Higher Education Committee.
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It's estimated that one in three Kentuckians struggles to pay medical bills, and the issue continues to be a driving factor in personal bankruptcy cases. Local organizations are working to address the issue by partnering with debt-buying agencies to relieve residents' medical debt.
Reverend Kent Gilbert, pastor of Union Church in Berea, said during the pandemic, several churches teamed up with a debt consolidator to eliminate millions of dollars of medical bills. He said without boosting consumer protections, such as those enacted recently to stop surprise medical billing, the problem will worsen.
"What this really tells us is that we need to stop this debt from happening in the first place, and I think that should be our ultimate goal," Gilbert continued.
Research shows Black Americans, people living in the South and those living in states that have chosen not to expand Medicaid are more prone to carrying significant medical debt.
Kentucky Voices for Health is also tackling the issue by partnering with RIP Medical Debt, a charity that uses donations to forgive delinquent debt. For more information visit KYVoicesForHealth ."
Kelly Taulbee, director of communications and development with Kentucky Voices for Health, said while systemic changes are needed to address skyrocketing health-care costs, many Kentuckians need immediate help paying bills. She explained that through her organization's partnership with RIP Medical Debt, $1 donated helps eliminate more than $100 in medical debt. She said eligible cases are identified using consumer data from health-care providers to locate accounts that meet the criteria for debt relief.
"Donations made completely abolish that medical debt, no strings attached, no tax consequences. These portfolios are bought at a fraction of the original costs, and then once the debt is relieved, recipients are notified that their debt is gone," Taulbee said.
A 2018 consumer survey found 72% of Kentucky adults have struggled with health-care affordability. In eastern Kentucky, nearly 80% of people reported having problems and 1/3 said they'd been contacted by a debt-collection agency.
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Small Business Saturday has come and gone and the North Carolina Sustainable Business Council urged people to keep "shopping local" this season.
The council said supporting homegrown businesses creates jobs and makes communities healthier. One of those businesses is the Little River Pecan Farm, with 100 pecan trees on a 10-acre section of sixth-generation land.
Crissy Neville, the farm's owner, emphasized the need to support local growers. She said shopping at local farms and agro-tourism sites preserves family businesses, but can also benefit the environment.
"Shipping is not involved, trucking is not involved," Neville pointed out. "Essentially, you know, you're buying locally, and that's the best thing that you possibly could do for lowering your carbon footprint."
Neville cited the added benefit of knowing where your food comes from. Studies estimate processed food in the U.S. travels more than 1,300 miles, and produce may travel more than 1,500 miles before reaching the table if it is not grown locally.
Rebekah Miel, owner of Miel Creative Studio in Durham, works with purpose-driven organizations to help them amplify their work. She pointed out local businesses often help their communities in ways beyond offering their products or services.
"Small businesses donate 250% more to local nonprofits and community causes," Miel explained. "That is also exemplified in our business. Our 'Design to Give' model means we give at least 5% back to local nonprofits, 1% of which is to local environmental nonprofits."
Anne Shaw, state director for the Small Business Center Network, said there is nothing "small" about the power of small companies. Their overall contribution to the workforce is enormous.
"The 1 million small businesses that exist in North Carolina, they employ 1.8 million employees," Shaw emphasized. "Which represents about 44% of North Carolina employees."
Shaw added research also shows on average, a local retailer will recirculate about 48% of their revenue back into the local economy, compared to about 14% of revenue from a national chain.
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A new report from the Consumer Financial Protection Bureau found the repayment process for federal student loans has been filled with errors.
Repayments began in October following a three-year pandemic-related pause. Since then, complaints of inaccurate bills, late notices and poor customer service have only increased.
Rep. Ayanna Pressley, D-Mass., said borrowers are struggling to reach loan service providers on the phone while more than 20,000 people received grossly incorrect bills.
"Now imagine opening your mail and seeing a bill for 100,000 dollars. This is ridiculous," Pressley asserted.
Pressley pointed out borrowers' financial situations are as precarious now as they were when the pandemic began and argued they deserve student debt relief. Critics countered American taxpayers should not be saddled with college loan debt they did not incur.
Officials with the Consumer Financial Protection Bureau said they are working to protect student loan borrowers from incompetent or predatory student loan servicers, including the more than 800,000 people who missed their first payment since the pause was lifted because their bills were mailed out too late.
Rohit Chopra, director of the bureau, said borrowers should be cautious, especially when talking to third-parties contracted by loan servicers for bill payments.
"If you're having trouble, please file a complaint," Chopra urged. "We're often able to get those individuals across the country fixes and sometimes clear answers on what really needs to happen."
The Supreme Court struck down President Biden's student loan forgiveness plan earlier this year, affecting more than 800,000 student borrowers in Massachusetts who would have been eligible to have some if not all their debt erased.
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