Following President Obama’s introduction of the “Student Aid Bill of Rights” the Senate followed suit by reintroducing the Student Loan Borrower’s Bill of Rights. The bill was first introduced last year, but failed to move forward. The bill is an effort to ensure that the 40 million Americans with student loan debt are protected and understand their rights as consumers.
“The Student Loan Borrower’s Bill of Rights” will ensure that all borrowers have basic rights and protections as they repay their student loans and offer more repayment options to them if they are unable to make their monthly payments in full,” according the Senator Dick Durbin. He was one of three senators to reintroduce the bill.
The legislation’s authors explained that the new bill would give six basic rights to both federal and private student loan borrowers:
1. The right to have options such as alternative payment plans to avoid default.
2. The right to be informed about terms and conditions of the loan and repayment options to ensure changing plans will not cost more.
3. The right to know your loan’s servicer and who to contact when there is a problem.
4. The rights to have consistent monthly payments. Lenders and servicers will also be required to honor promotions and promises that are advertised or offered to borrowers.
5. The right to fairness when it comes to issues such as grace periods, when loans are transferred, or debt cancellation when the borrower dies or becomes disabled.
6. The right to accountability including timely resolution of errors and certification of private loans.
The Bill of Rights will also ensure that service members and veteran borrowers will be provided with a liaison specifically trained in the benefits available to military borrowers.
Click here to learn more about the Student Loan Borrower’s Bill of Rights.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at http://www.miamibankruptcy.com.