Home News California is running out of time to protect student loan borrowers – Cal Matters

California is running out of time to protect student loan borrowers – Cal Matters

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Almost 4 million Californians currently owe more than $147 billion in student loans. Many of these loans were made without the students having sufficient information about the debt load they were undertaking. Other loans are exacerbated by egregious practices such as pushing students from certain neighborhoods into more expensive repayment plans or loans with higher interest rates.

Now, given the current economic instability, many Californians are unable to make student loans, mortgages and rent payments. And the decrease in unemployment benefits and other pandemic related financial impacts are having a cumulative effect on student loan borrowers. More than 508,000 Californians are in default on their student loans, $14 billion worth. And every day more California students find their way into this trap.

This August, our state Legislature has a chance to fix the student debt crisis in California. We need to pass Assembly Bill 376, introduced by Assemblymember Mark Stone, a Democrat from Santa Cruz.

The legislation, if passed, would make California the first state in the nation to establish basic consumer protections for student loan borrowers. AB 376 creates the Student Borrower Bill of Rights.

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