Attorney General Lisa Madigan is pushing legislation aimed at protecting Illinois students who take out college loans.
The plan would establish a “student loan bill of rights” outlining information that companies have to provide to borrowers, including all repayment options. It also would require student-loan servicers to get a state license and create a student-loan ombudsman in the attorney general's office.
A Senate committee approved the legislation with Democratic support. Three Republicans opposed it, including GOP Sen. Chapin Rose of Mahomet, who says he's concerned about some exemptions in the plan.
Madigan, a Democrat, filed a lawsuit this year against Navient Corporation for not always putting borrowers in the cheapest or best payment plans.
“These borrowers are the ones who often move back home because they don’t have the financial resources or the credit to purchase a home, to rent an apartment, to purchase or finance a car, and start a family,” Madigan said.
The attorney general’s suit accuses Navient, the nation's largest student-loan company, of unfair and deceptive practices with lending and debt collection.
Navient disputes the allegations.
- The Associated Press and Illinois Public Radio's Tony Arnold contributed to this story.
