Gov. Raimondo Ceremonially Signs Student Loan Bill Of Rights

Rhode Island's student loan bill of rights is officially state law. On Tuesday, Governor Gina Raimondo ceremonially signed the legislation which protects borrowers and creates oversight for loan servicers.

"By several measures, student loan debt has increased greatly in the last 10 years," said Representative Jospeph McNamara, chairman of the House Committee on Health, Education and Welfare and the bill's sponsor. "It has surpassed the amount households owe on auto loans, home equity loans and credit cards. This legislation will help to address the crisis by establishing oversight of the student loan process and prohibiting predatory practices."

The bill has technically been law since Jul. 15, when it was signed by Gov. Raimondo after it was approved by the General Assembly in June. Tuesday's event was a ceremonial celebration of the legislation's passage.

"We’ve worked hard to reduce the cost of college for Rhode Islanders. We also need to ensure that those who graduate with debt are treated fairly by lenders," Raimondo said. "The Student Loan Bill of Rights safeguards students by creating clear, strict, and transparent regulations for loan agencies, and it ensures that loan agencies are held accountable for their actions."

Both General Treasurer Seth Magaziner and Attorney General Peter Neronha support the law, which creates standards for student loan servicing and create protections for borrowers. Under the law, the Attorney General and Department of Business Regulation have the power to penalize those who break the rules and get restitution for borrowers.

"There is a growing student debt crisis in the country and in Rhode Island. There are borrowers who do everything right and still fall victim to predatory and deceptive practices by the corporations that service their loans," Treasurer Magaziner said. "Today, the Rhode Island General Assembly passed our common-sense legislation that will hold servicers accountable and provide an important resource for Rhode Islanders who are paying off student loans."

"If and when borrowers have issues with their loans or loan servicers, this legislation provides them with a place to go to address those issues." Attorney General Neronha added. "While our primary focus will be on helping Rhode Islanders get the information they need to solve their student loan problems, my office will be ready, on behalf of mistreated borrowers, to investigate and enforce violations of the student loan standards outlined in this bill."

More than 133,000 people have a combined $4.5 billion in student loan debt in Rhode Island, including 16,000 seniors. More than $470 million of that debt is delinquent.

More than 133,000 Rhode Islanders, including 16,000 senior citizens, have a combined $4.5 billion in student loan debt. Over $470 million of Rhode Islanders’ student loan debt is delinquent.

Senator Dawn Euer, the Senate sponsor of the bill, has long been a champion of student's financial rights.

"The heavy burden of student debt is challenging enough for the majority of college graduates. Incompetent, inefficient or even deceitful loan servicers should not be allowed to exacerbate their struggles," the Newport Democrat said. "Student loan servicers must be held accountable to ensure that they are providing honest, reliable information and services to their borrowers.”