Mar 14, 2013 at 6:59 am
WASHINGTON (AP) Senator Al Franken is co-sponsoring the Smarter Borrowing Act to protect and empower student loan borrowers with effective loan counseling.
Last year, student loan debt topped $1 trillion, surpassing credit card debt for the first time.
Franken says by improving the timing and quality of loan counseling, the bill will ensure that students are better prepared to avoid taking on burdensome debt and will help them manage repayment once they’re out of school.
Franken says the legislation strengthens and reforms the current mandatory entrance and exit loan counseling requirements for federal student loans and notifies students annually of their cumulative debt, including their remaining eligibility for loans and grants.
The bill also offers additional consumer protections and requires high-risk institutions to provide in additional counseling.