Aiming to help people drowning in student loan debt, a public hearing is slated for Monday morning in Albany.
State senate leaders say student loan companies may not be giving borrowers the best advice.
Not long ago, the New York State Assembly passed legislation requiring the Department of Financial Services to license student loan companies and keep a closer eye on how they handled repayment plans.
Monday’s public hearing for the proposed Student Loan Consumer Assistance Program stems from a recent report by the Inspector General of the U.S. Department of Education. The report states that not enough has been done to protect people who have borrowed money to pay for college.
Furthermore, the report states that Federal Student Aid does not effectively monitor loan companies and it has no defined standard for what establishes loan servicer non-compliance.
The report also says the FSA has “almost never penalized” loan companies for inappropriate practices such as giving borrowers bad advice on paying back their loans.
An additional proposal by the NYS Senate members participating in Monday’s hearing is to have a statewide consumer help-line for student loan borrowers to provide accurate, unbiased advice to protect their personal finances.
The hearing begins at 11 a.m. in Albany.