Push underway in Augusta to establish Student Loan Bill of Rights in Maine
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Push underway in Augusta to establish Student Loan Bill of Rights in Maine

October 11, 2019


ALLEGATIONS OF PREDATORY
PRACTICES. WMTW NEWS8’S JIM
KEITHLEY REPORTS.  
 
 
 

“ONE OF THE COUNTRY’S
LEADING STUDENT LOAN
WATCHDOG FROM WASHINGTON IS IN MAINE TRYING TO
PERSUADE LAWMAKERS THAT
REGULATIONS NEED TO BE IN
PLACE WHEN IT COMES TO
STUDENT LOANS.”
THE SAME KIND OF REGULATIONS IN PLACE WHEN
IT COMES TO MORTGAGES AND
CAR LOANS.
“BUT IT WAS MORE OF LYING
BY OMISSION.”
HILARY MANUEL OF OLD
ORCHARD BEACH FOUND
HERSELF DROWNING IN STUDENT LOAN DEBT.. OWING
96- THOUSAND DOLLARS AFTER
ATTENDING U- S-M AND
SUFFOLK UNIVERSITY IN
BOSTON FOR GRAD SCHOOL. HER
MONTHLY STUDENT LOAN PAYMENT 12- HUNDRED
DOLLARS – TWO-THIRDS OF HER
ENTIRE INCOME.
“THEY KNEW HOW MUCH MONEY
I WAS MAKING. THEY KNEW THAT
THAT DEBT-TO-INCOME RATIO
WASN’T FEASIBLE FOR
SOMEONE JUST OUT OF SCHOOL.”
SETH FROTMAN WHO LED THE
“CONSUMER FINANCE
PROTECTION BUREAU” IN
WASHINGTON SAYS STUDENT
LOAN SERVICING COMPANIES ARE BEING DECEITFUL…BY
NOT TELLING THE WHOLE TRUTH
TO BORROWERS WHO ARE IN
TROUBLE..NOT TELLING THEM
ABOUT A HOST OF RE- PAYMENT
OPTION PLANS THAT ARE AVAILABLE.
“UNFORTUNATELY WHAT
WE’VE SEEN IS THAT STUDENT
LOAN COMPANIES
RESPONSIBLE FOR HELPING
BORROWERS GET IN THAT PLAN, GET ENROLLED IN THAT PLAN,
AND ULTIMATELY BE
SUCCESSFUL, ARE ASLEEP AT
THE SWITCH. THEY’RE GIVING
BORROWERS BAD
INFORMATION, CONFLICTING INFORMATION OR NO
INFORMATION AT ALL.”

“I WENT AND LOOKED FOR
MYSELF FOR RE- PAYMENT
OPTIONS. THROUGH TRIAL AND ERROR, AND SUBMITTING
INCOMPLETE PAPERWORK, THE
WRONG PAPERWORK WITH
MINIMAL TO NO GUIDANCE – I
WAS FINALLY ABLE TO MUSCLE
MY WAY THROUGH AND TO A RE- PAYMENT PROGRAM.”

“AFTER TODAY’S PUBLIC
HEARING, THE BILL WILL BE
DISCUSSED AT A WORK SESSION
NEXT WEEK. THEN, IT REMAINS TO BE SEEN WHETHER IT WI

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