Following roundtable on student loans, Rep. Davids announces two bills to lower costs, protect students
Following her round table on the impact student loan debt is having on the people of Kansas’ Third District, Rep. Sharice Davids is helping to introduce two bills to remove hidden fees on student loans and help students who were scammed into faulty loans get relief.
“During our roundtable on student loans, I heard from so many students and families in Kansas about the devastating effect student loan debt is having on them and their ability to plan for the future. As we continue to look for solutions to this pressing issue, I’m proud to introduce two pieces of legislation that will lower the cost of student loans and help protect students from bad actors,” said Davids.
The Relief for Defrauded Students Act helps students misled by predatory, often for-profit colleges seek relief for their federal loans. It would provide a quicker, fairer process for students to reclaim their loan payments from institutions like Wright Career College, a now-defunct college based in Overland Park that defrauded students.
“Students take out loans with the expectation that they will receive an education that sets them up for success – yet too many students are left with enormous debt from predatory institutions and no education to show for it. Congress must put in place safeguards to ensure defrauded students have the opportunity for relief,” said Davids.
The second piece of legislation, the Fee Free Student Loan Act, removes all administrative fees, which can range from one to four percent, on federal student loans. This hidden tax collectively adds billions of dollars to student debt every year.
“We should be encouraging – not penalizing – folks who want to pursue higher education. That starts by eliminating these unnecessary and costly fees, reducing the burden of student loans up front, so that all our students can succeed,” said Davids.