"Just as the housing crisis trapped millions of borrowers in mortgages they could not afford, student loan debt could very well prevent millions of Americans from ever achieving financial security and fully participating in our economy," Madigan said. "My office's investigations into the for-profit schools industry, student loan servicing and a new industry of student loan debt scams show that we need stronger consumer protections for borrowers to provide legitimate debt relief and to crack down on unfair and deceptive practices."
Madigan's HELP testimony comes a week after she filed the first lawsuits in the country targeting a new industry of student loan debt relief scams. The lawsuits against the
Madigan is also leading a multistate investigation into the student loan servicer
In addition to addressing her role in higher education as a state Attorney General and outlining her enforcement efforts, Madigan made several recommendations for the HELP Committee to consider as it works to reauthorize the Higher Education Act to address the growing number of challenges students face in higher education, including:
o Stronger controls over the level of federal funding that for-profit schools receive to ensure those funds are only used to provide students with high quality, affordable higher educations that help them obtain jobs after graduation;
o A streamlined and accessible system within the
o Support for legislation to allow students to refinance their federal loans to take advantage of today's low interest rates, similar to what is already offered to homeowners.
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