Proposed Bill aims to stop ‘predatory’ student loan lending
BOWLING GREEN, Ky. – Western Kentucky University professor and State Rep. Patti Minter, D-Bowling Green, pre-filed Bill Request 96 last Thursday.
Minter said she proposed “The Student Loan Borrower’s Bill of Rights,” bill request to make loans more transparent for students.
“So many people have no idea what they’re signing up for,” said Minter. “They are just ticking off boxes because they know they need money for school, but this bill will make sure that just like mortgage borrowers know what they’re getting into, before people sign onto that dotted line, that they know what their obligation is, that their co-signers know what their obligation is and that the state government will make sure that they have full transparency.”
Minter said that this proposed bill will create oversight for the whole student loan process and stop “predatory” lending.
She says this bill request, if passed, would require people providing student loans to explain to the students what their monthly payments would be, what would happen if they miss a payment, if they have an adjustable rate of interest, and if so, for how long.
Democratic representative Attica Scott, of Louisville, signed as a sponsor for this bill request along with Minter. Minter said she hopes this bill gains bi-partisan support.