In a landmark move today, California Governor Gavin Newsom signed into law sweeping legislation to protect student loan borrowers.
Referred to as a student loan borrower “bill of rights,” the new law establishes enforceable, statewide industry standards for student loan servicers and protects student loan borrowers against unfair, deceptive, and predatory practices by servicers and lenders. The bill was previously approved by the California State Assembly; the State Senate followed suit in August.
“With Governor Newsom’s signature, [the] Student Borrower Bill of Rights is now law guaranteeing millions of people with student loan debt have the consumer rights and protections they deserve,” said Natalia Abrams, Director of Student Debt Crisis in a statement. “For years, thousands of California student loan borrowers told us about problems with student loan companies. These problems that have cheated people out of millions of dollars and caused real stress for families who had no recourse. Now, with the Student Borrower Bill of Rights, Californians have real, enforceable rights and can take action when they are harmed.”