Student Loan Borrower Bill of Rights

The Student Loan Borrower Bill of Rights (S 3404) establishes new consumer protections for student loan borrowers by requiring lenders to provide clear, plain-language disclosures about loan terms, repayment options, and servicemember benefits. It mandates the creation of repayment specialists to assist borrowers at risk of default, requires removal of default records from credit history upon repayment, and establishes a centralized point of access for borrowers to manage their loans. The bill directly affects both federal and private student loan borrowers and the lenders and servicers who handle these loans. Specific requirements include clear disclosures about loan terms, limits on late fees (capped at 4% of the payment amount), and prohibitions against certain practices that could harm borrowers. The bill also creates an interagency working group to develop improved servicing standards for student loans.