PROVIDENCE – Nearly a year after the Student Loan Bill of Rights was passed in Rhode Island, the R.I. Office of the General Treasurer and the R.I. Office of the Attorney General jointly launched a new website to assist student-loan borrowers understand their rights and offer access to various resources to ensure those rights.
The website, which was launched Thursday and is called studentloanrightsri.com, states that many student borrowers in recent years have reported “difficult and concerning” experiences with loan-servicing companies hired to help borrowers pay off loans. Currently, approximately more than 130,000 Rhode Islanders owe more than $4.5 billion in student-loan debt, the website states.
Some issues the state has heard about are that student-loan servicers drawing wrong amounts from borrowers’ bank accounts; servicers not notifying borrowers about all the repayment options that are available to borrowers or about the impact that loan modifications may have on their eligibility for loan forgiveness programs; and servicers sending “inaccurate information” about borrowers to credit agencies, the website states.
R.I. General Treasurer Seth Magaziner said in statement that many Rhode Islanders investing in their education are affected by “negligent or deceptive practices by student-loan providers.” He also said borrowers understanding the Student Loan Bill of Rights – passed in September which gives the state tools to investigate complaints and hold servicers accountable – is important for them to know.
The new website offers borrowers what rights they do have, methods to get connected with consumer-protection experts on how to determine if borrowers had their rights violated and what options they have and to help file complaints against servicers.
“It’s to raise awareness because a lot of borrowers don’t even know that they’re being [pushed] over by their servicer. They don’t know what the issues are. And, if they are, they don’t know where to turn,” said Kristy dosReis, spokesperson for R.I. Attorney General Peter F. Neronha. “We’ve now dedicated staff and resources to really attacking this issue and really being out there for student-loan borrowers as a place they can turn. Even if it doesn’t rise to the level of a law-enforcement action, we can answer questions and help them navigate the process with their servicer.”
Student-loan borrowers rights being protected is being further emphasized during the COVID-19 pandemic, where borrowers have recently fallen into financial difficulty as a result of the health crisis that is plaguing both Rhode Island and the world. The Coronavirus Aid Relief and Economic Security Act, or CARES Act, offers protections to borrowers holding federal student loans.
Those protections include all payments on federally held loans and collection activities on such loans are currently suspended until Sept. 30. Also, no interest will accrue on those loans during the suspension period.
DosReis said the CARES Act does not provide relief for loans obtained through private providers, and those borrowers are advised to contact the providers about any protections they may offer. She did say that “a lot” of private borrowers are offering similar loan protections on their own for borrowers. The website will help guide borrowers if they have issues with either federal loans or loans from private providers, dosReis said.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
