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Legislative Update: Bill Would Provide Protections to Student Loan Borrowers

THE AFRO — House bill 594, sponsored by the late House Speaker Michael Busch, would prohibit student loan servicers from engaging in any deceptive practice — like giving false information to students or misapplying or refusing to correct misapplication of payments. The legislation was introduced at the request of Attorney General Brian Frosh.

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By Daniel Oyefusi, Capital News Service

Wade Davis called Navient’s customer service in March, hoping to adjust the payment plan for his student loan. Davis, 36, a freelance musician seeking full-time employment, said he couldn’t commit to his plan.

After telling a representative from Navient — one of the major student loan servicing companies — of his current financial situation, the representative informed him he would have to sign up for a month-to-month payment plan that Davis said isn’t feasible with his current financial situation.

Reiterating his financial struggles, Davis said he was frustrated with the representative whom he described as “rude” and “snarky” and who threatened litigation.

“They know what they are doing,” Davis said of the loan servicing company. “They have a license to treat people any way.”

A bill passed in the Maryland General Assembly would provide protections for Davis and other student loan borrowers who have complained of predatory behavior from loan servicers.

The legislation comes months after a report by the Maryland Office of the Inspector General claimed servicers placed borrowers in adverse situations.

House bill 594, sponsored by the late House Speaker Michael Busch, would prohibit student loan servicers from engaging in any deceptive practice — like giving false information to students or misapplying or refusing to correct misapplication of payments. The legislation was introduced at the request of Attorney General Brian Frosh.

The legislation would also require that servicers respond to a written inquiry or complaint within 30 days and allow a Student Loan Ombudsman to refer complaints to the office of the Commissioner of Financial Regulation, the primary regulator of financial institutions in Maryland.

In 2017, the Consumer Financial Protection Bureau — a U.S. governmental agency tasked with oversight of banks, lenders and other financial companies — sued Navient for what then-bureau Director Richard Cordray called “failing borrowers at every stage of repayment.”

According to the Consumer Financial Protection Bureau, of the 878 complaints related to student loan servicing from Maryland borrowers, 402 are in regard to servicing problems by Navient.

While Davis, a Baltimore resident for the last 10 years, said he understands it is the job of servicing companies to receive payments from borrowers, he said he wasn’t appreciative of what he believes was “predatory” behavior. He did not file a complaint, and said he was eventually placed on a new plan after tweeting directly to Navient and speaking with them again.

Navient did not respond to multiple requests for comment on Davis’ claims.

The Office of the Inspector General, an independent watchdog that oversees the U.S. Department of Education, released an audit in February regarding the department’s oversight of its student loan servicers.

The audit suggests the department did not do enough to hold servicers accountable when they strayed from their contracts.

According to the audit, 61 percent of reports showed noncompliance with federal requirements, including “failure to comply with requirements relevant to forbearances, deferments, income-driven repayment, interest rates, due diligence, and consumer protection.”

The Department of Education hired eight loan servicers, private sector companies including Navient, to handle student loan repayment.

“I’ve never experienced a private loan (servicing) company that is out to see that you are performing well,” Davis said.

In response to the lawsuit filed by the Consumer Federal Protection Bureau, Federal Student Aid — which works in the Department of Education — requested an internal review of Navient’s practices.

When asked for response to the claims made by the Office of the Inspector General, Navient provided Capital News Service with a 2018 statement from the Department of Education that states the Federal Student Aid review “did not identify instances of systematic non-compliance, and did not result in findings, sanctions, or the establishment of a corrective action plan.”

According to written testimony submitted by the office of the Maryland Attorney General, the Consumer Financial Protection Bureau has received 1,768 complaints regarding student loan servicers from Maryland borrowers.

Many of these complaints include issues over lost paperwork, misapplied payments, servicers failing to correct misapplications and lack of information regarding best options for repayment, according to the testimony.

In student loan complaint documents provided to Capital News Service by the Office of the Maryland Attorney General, borrowers brought up issues including miscalculation of public student loan forgiveness payments, servicers “harassing” them for payments they didn’t owe and illegally garnishing wages.

According to the Institute for College Access & Success, an independent, nonprofit organization, 56 percent of Maryland students graduate with an average of $29,314 in debt.

According to the Consumer Financial Protection, student loan debt in the country has increased to $1.5 trillion.

Frosh called the legislation a “Student Borrower Bill of Rights” that outlines what servicers can and cannot do. According to written testimony from his office, similar guidelines have been set or are under consideration in at least 15 states.

Seth Frotman, executive director of the Student Borrower Protection Center, called the legislation a “critical bill” that would benefit students who have been subjected to a “range of predatory practices.”

Frotman, who previously served as the student loan ombudsman for the Consumer Financial Protection Bureau, said he worked with students and servicers to handle repayment. He said most complaints were regarding individuals who received bad information from servicers and was systemic of a larger issue across the country.

The passage of this legislation comes in the middle of a tug-of-war between state attorneys general and the Trump administration. On April 5, Frosh joined a group of almost two dozen attorneys general requesting that Department of Education Secretary Betsy DeVos reverse the decision to keep student loan information from state law enforcement agencies.

“There is no legitimate reason for the Department of Education to halt student loan data sharing with state officials,” Frosh said in a press release. “The private companies contracted by the Department to service student loans are subject to state consumer protection laws, and the established practice of sharing certain student loan information helps states ensure these companies are complying with the law and borrowers are being treated fairly.”

This article originally appeared in The Afro

Capital News Service

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Black History

NAACP Announces $20m Voter Registration Drive at National Convention in Chicago

GARY CRUSADER — The NAACP announced a $20 million voter registration campaign at its 117th annual convention in Chicago. The campaign aims to register between six and 10 million voters who did not participate in the last two elections.

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NAACP Announces $20m Voter Registration Drive at National Convention in Chicago

With just over three months before the midterm elections, the NAACP at its 117th annual convention in Chicago announced an unprecedented $20 million voter registration campaign ahead of the midterm elections.

The announcement kicked off the NAACP’s national convention at McCormick Place where thousands of visitors and delegates participated in workshops and seminars that stressed the organization’s theme of “We the People” and purpose of educating Blacks about their constitutional rights.

Throughout the week-long convention, vendors sold merchandise, media organizations held onsite interviews in “The HUB,” and visitors signed a massive “We the People” mural.

Governor J.B. Pritzker and Mayor Brandon Johnson were among the dignitaries who reinforced the NAACP’s message during the convention’s opening plenary.

Black voting rights have been under attack in the last several months when Louisiana, Tennessee, Alabama and Florida gutted historic Black congressional districts after the U.S. Supreme Court ruled such districts were unconstitutional and were no longer needed in modern times despite protections under the Voting Rights Act of 1965.

The NAACP, the nation’s oldest civil rights organization, is concerned those decisions will roll back political and economic gains Blacks have made in the last six decades.

NAACP Board Chairman Leon Russell told the opening session that the NAACP would undertake a $20 million voter registration and mobilization drive “to motivate six million to 10 million voters” who did not cast ballots in the last two elections to do so.

As part of the campaign, the NAACP plans to recruit “tens of thousands of volunteers to join the crusade to turn out millions of us this November.”

The plan will target voters in 14 states and 33 congressional districts, with the full list expected to be disclosed later.

“We must move 60 percent or more of all eligible voters to the polls,” Russell said.

The NAACP has a history of leading voter registration drives in Black neighborhoods across America.

In his speech, Pritzker said, “In Washington and across the country, extremists holding high office are working to erase Black history rather than learn from it, to take away voting rights instead of strengthening them, to divide us rather than unite us,” he said.

He added, “These are not simply disagreements over policy. These are challenges to the very idea that democracy belongs to all of us. Challenges to the very idea that we are all created equal.”

Pritzker said the phrase “We the People” reflects America’s ongoing effort to expand equality, noting that the nation’s founding ideals initially excluded enslaved people, women and other groups.

Mayor Brandon Johnson said, “For 117 years this incredible organization has helped bend the arc of history towards justice. And not because progress was inevitable, but because ordinary people made the extraordinary decision to organize, advocate and refuse to accept injustice as the reigning form of governance. That work has never been easy, and today it remains as urgent as it has ever been.

“Across this country we are witnessing wicked efforts to undermine fundamental rights, weaken Democratic institutions, and to turn neighbors against one another.

“We see attempts to silence the truth and erase our history and convince people that somehow division is stronger than solidarity. But history has taught us something very different. Every time people have been told to accept injustice, they have risen together to reject it. “

During Trump’s second term in office, the NAACP has filed more than 70 lawsuits to stop his grasping and often unconstitutional moves to grab total power.

Pritzker said “Illinois has been at the forefront of the struggle for freedom and equality” ever since Jean Baptiste Point du Sable, a non-white, was the first permanent resident of what is now Chicago, Pritzker noted.

Pritzker also said Illinois also gave the nation the crusading African American journalist Ida B. Wells, and it elected more African American members of Congress than any other state. He said Illinois gave the nation the late civil rights leader Jesse Jackson and “a young community organizer” who eventually went from Chicago to the White House, Barack Obama.

“But such progress is not inevitable,” the governor warned. “It requires people willing to sacrifice. None of this is by accident. It is because Black America shows up, reminding us of the painful part of our history while giving us hope for the future.”

Based on reporting by Gary Crusader.



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Black History

Opinion: When Politicians Start Sanitizing One Chapter of History, They’re Coming After The Whole Book

OAKLAND POST — The White House recently released a report criticizing the Smithsonian for supposedly promoting “anti-White activism” and other ideological sins. Buried inside is something even more troubling. The report argues Americans shouldn’t think of the Chinese Exclusion Act of 1882 primarily as a racist law. Instead, we’re told it was about national security.

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AI-generated illustration created by Open AI.

I came to Winnipeg to perform my one-man show, 69, Emil Amok: Anchorman—The News Made Me Do It.

I didn’t expect to leave with another lesson about America.

It came over dim sum.

After the show, Shirley—a Chinese Canadian—and her friend Chris, a Sri Lankan-Mauritian Canadian—insisted on taking me to a restaurant in Winnipeg’s Chinatown.

A Filipino American. A Chinese Canadian. A Sri Lankan-Mauritian Canadian.

The United Nations, if it served dumplings.

Then Shirley told me about her father.

He arrived from China at 14 years old, speaking no English. The school put him in second grade just to learn the language. Once he caught up, they skipped him to ninth grade.

Two years later, he was working.

He opened a restaurant.

It burned down.

He opened another.

Eventually he bought a café in rural Manitoba serving chop suey, burgers, steaks and fries.

The Good Way Café became the place everybody gathered. Rock and roll played from the jukebox until midnight.

Her father, Arthur Mar, built a business, employed people and became part of his community.

Sound familiar?

It should.

It’s the same immigrant story Americans love to celebrate.

Until politics gets involved.

Because before Arthur Mar could build anything, Canada made him pay a $500 Chinese head tax—a fortune in the 1920s.

When that didn’t keep enough Chinese out, Canada passed its own Chinese Exclusion Act.

Different country.

Same racism.

Canada has spent decades admitting what it did.

The Trump administration wants America to do the opposite.

The White House recently released a report criticizing the Smithsonian for supposedly promoting “anti-White activism” and other ideological sins.

Buried inside is something even more troubling.

The report argues Americans shouldn’t think of the Chinese Exclusion Act of 1882 primarily as a racist law.

Instead, we’re told it was about national security.

Funny how those two words have always been available whenever politicians want to discriminate against somebody.

Black Americans have heard that song before.

Slave patrols became public safety.

Jim Crow became states’ rights.

Mass incarceration became law and order.

Same melody.

Different verse.

History has a way of putting racism in a respectable suit.

When politicians begin sanitizing one chapter of history, they’re coming after the whole book.

Communities of color don’t have identical histories.

But we recognize familiar tactics.

About the Author

Emil Guillermo is an award-winning journalist, commentator and comic monologist. He performs “69, Emil Amok: Anchorman—The News Made Me Do It” at the Winnipeg Fringe Festival, July 16–26.

Get Tix: https://www.winnipegfringe.com/performer-detail.aspx?kw=Emil+Amok+Productions

Follow him at YouTube.com/@emilamok1.

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Community

Rep. Garamendi, House Democrats Demand Trump Administration Abandon Illegal Plans to Dismantle Civil Rights, Special Ed Offices

OAKLAND POST — “The law is clear: Congress created OCR and OSERS and Congress alone can eliminate them. The use of Interagency Agreements to accomplish your ‘final mission’ – to eliminate the Department in all but name – is counter to the will of Congress and rests on questionable legal ground. Even Congressional Republicans have expressed reservations and attempted to keep money appropriated to the Department within the Department, rather than being outsourced through IAAs…,” the members of Con

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Rep. John Garamendi. Courtesy photo.

Congressman John Garamendi (CA-08) joined 85 House Democrats this week calling on the Department of Education to immediately abandon its plan to transfer the Office of Special Education and Rehabilitative Services (OSERS) to the Department of Health and Human Services (HHS) and the Office for Civil Rights (OCR) to the Department of Justice (DOJ).

In their letter, the members argued that the Trump Administration’s plan to dismantle OCR and OSERS through Interagency Agreements (IAAs) is unlawful because Congress established both offices and only Congress has the authority to eliminate them or alter their responsibilities.

“The law is clear: Congress created OCR and OSERS and Congress alone can eliminate them. The use of Interagency Agreements to accomplish your ‘final mission’ – to eliminate the Department in all but name – is counter to the will of Congress and rests on questionable legal ground. Even Congressional Republicans have expressed reservations and attempted to keep money appropriated to the Department within the Department, rather than being outsourced through IAAs…,” the members of Congress wrote.

 The members also warned that transferring OCR and OSERS functions would weaken services for students, families, and individuals with disabilities because DOJ and HHS are ill-equipped to carry out the offices’ core functions. 

“The movement of OCR and OSERS also disrespects the very people who rely on those services. Specifically, these moves effectively segregate special education from the rest of the education system, moving it to an agency that has indicated it intends to treat disabilities as a health issue to be remedied, against the wishes of groups that advocate on behalf of disabled children and their families. Such action is particularly concerning given the inaccurate and harmful comments from the HHS Secretary regarding children diagnosed with autism. 

“Comments such as these will leave those relying on special education services fearful about whether their rights will be upheld and their needs met. Regarding OCR, given the sensitive nature of many of the cases it handles, victims may be hesitant to seek support knowing the investigation will be run by the nation’s primary law enforcement agency. Such delays may cause cases of discrimination to fester and worsen while sending the wrong message to vulnerable communities,” concluded the members.

In February, the Government Accountability Office (GAO) reported that the Department of Education paid OCR investigators up to $38 million not to work.

In April, the Senate HELP Committee released a report that in 2025, OCR reached zero resolution agreements involving sexual harassment, sexual violence, seclusion or restraint, racial harassment, or discriminatory school discipline — despite more than 2,700 pending cases.

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