Attorney General Madigan's office has seen an increasing number of complaints filed with her office about abuses in student loan debt servicing and scams targeting students struggling to pay off their loans. In response, Madigan is leading the nation in investigating and enforcing consumer protection violations in higher education. Her work includes leading a multistate investigation into
Madigan convened the meeting at SIUE to discuss her work and learn more to inform her efforts to help current and former students facing unprecedented levels of debt to avoid being taken advantage of by loan servicers or con artists preying on borrowers' desperation.
"Student loan debt has reached a scale that makes borrowers prime targets for scams and financial abuse," Madigan said. "It is critical that we work in partnership with leaders in higher education to ensure students are informed about the realities of student loan debt and what their options are so that they can protect their financial security."
Madigan is leading a multistate investigation into the student loan servicer
Madigan said that student debt problems are increasingly difficult for students who attend for-profit schools. Complaints about for-profit schools make up 50 percent of the higher education-related complaints coming into her office. Students complaining about for-profit schools report that their degrees, which cost thousands and thousands of dollars, often fail to earn them a job in their chosen field. These students also experience a disproportionately higher rate of default on their student loan debt. In the case of national for-profit
Madigan's visit to SIUE comes on the heels of her testimony before the
* 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 education that helps them obtain jobs after graduation;
* Uniform standards for student loan servicers to provide struggling borrowers options for repayment;
* A streamlined and accessible system within the
* 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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