New Bill To Protect Hudson Valley Student Loan Borrowers
A new proposal would protect Hudson Valley residents looking to get student loans from predatory practices. A press release from Governor Cuomo's office stated the proposal would be part of the 2020 budget and would require student loan companies doing business in New York to be licensed, among a number of other changes.
There are nearly 3 million people in New York with student loans. The new bill would prevent companies from lying to these people or intentionally doing anything against their best interest.
- ensures no student loan servicer can mislead a borrower or engage in any predatory act or practice
- prevents misapplication of payments
- ensures accurate reporting of credit information to credit bureaus
- bans upfront fees
- requires a fair contract and clear and conspicuous disclosures to borrowers
- provides penalties for failing to comply with the law
According to Sallie Mae, the government offers three types of loan programs, direct subsidized loans which are based on financial need. The direct unsubsidized loans are not financial need-based and the Direct PLUS loan which is credit based.