The House Commerce and Labor Committee today killed a bill that would have protected student borrowers from predatory lenders.
SB 1053, which was sponsored by Sen. Janet Howell, would have instituted a rigorous licensing process for entities that service student loans. The bill also would have imposed a civil penalty for servicers that misrepresent the terms of the loan to borrowers.
The legislation passed the Senate 36-4 before it crossed over for consideration in the House. Republicans on the House Commerce and Labor Committee killed the bill in a party-line vote.
“Virginia’s economy is hampered by the more than $30 billion that our residents carry in student loan debt,” said House Democratic Leader David J. Toscano. “Student loan payments eat into the purchasing power of young people, deterring them from buying homes or even patronizing local restaurants. Too many of these borrowers were the victims of predatory lenders who misled them into accepting unfavorable terms. Yet today House Republicans chose to side with predatory lenders rather than with Virginia’s students.”
“House Republicans this session have repeatedly voted against the interests of Virginia’s students, seniors and working families,” said Caucus Chair Charniele Herring. “Education is the key to building a New Virginia economy, but too often crushing student debt prevents our young people from having a fair shot at the American Dream. This bill would have protected young people from predatory lenders seeking to take advantage of their ambition and aspirations. This should not have been a partisan vote.”
House Republicans this session also killed legislation sponsored by Del. Marcus Simon and Del. Marcia “Cia” Price that would have helped borrowers refinance student loans.
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Chris Graham
