AUGUSTA, Maine — A bill to help protect students borrowing loans for their education costs received unanimous, bipartisan support from the Health Coverage and Financial Services Committee Tuesday.
Maine Sen. Eloise Vitelli (D-Arrowsic) says her bill, LD 995, would establish a system for Maine to oversee student loan servicers who do business in the state.
Sen. Vitelli's bill would create a registration system for lenders and would require them to comply with federal law. It would also name a number of prohibited actions by lenders, including misleading student loan borrowers and committing fraud.
Under the bill, state officials would be allowed to investigate student loan servicers.
Sen. Vitelli and other Democrats in Maine's Legislature say that the burden of student debt has resulted in fewer young people buying homes and saving for retirement.
The bill faces further action in front of the House and Senate.