DURHAM, N.C. – New York Governor Andrew Cuomo included measures within his state budget proposal released today that would address abuses by for-profit colleges (PDF) and student loan servicers. (PDF) Advocates in the state have long pushed for these protections in light of the significant harms and costs to students and their families caused by abusive practices.
Center for Responsible Lending Deputy Director of State Policy Lisa Stifler issued the following statement:
We applaud Governor Cuomo for proposing strong measures to rein in abuses by for-profit colleges, which often saddle New Yorkers with heavy debt and no degree or one of little value. (PDF) The harms are particularly burdensome for people of color and low-income students.
Student loan servicers would be placed under state oversight, and predatory practices, such as steering borrowers into higher-cost repayment plans than those for which they qualify, would be banned.
These proposals should help protect hardworking New Yorkers as they strive for financial security and long-term family stability through the pursuit of higher education. The measures can also be a model for other states who are interested in protecting their citizens during a national student debt crisis, as federal regulators are falling short.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Carol Hammerstein at carol.hammerstein@responsiblelending.org.