Washington, DC – Today, the Council of the District of Columbia passed the New Student Loan Borrower Bill of Rights Amendment Act of 2024 on second reading at the September 17 Legislative Meeting. The bill provides explicit regulations to mitigate predatory practices by student loan servicers and require the creation of a new Student Loan Borrower Bill of Rights by January 2025 to establish baseline protections for student borrowers.

The District leads the nation in student loan debt, with 17.2% of borrowers carrying more than $54,945 in student loans on average. “Student loans pose a huge financial burden for District residents which can hinder their opportunities to purchase a home, obtain access to credit, or even start a business,” Councilmember Henderson stated. “Clear common-sense rules are needed to protect our student loan borrowers. So many residents testified in support of this bill. DC borrowers deserve protections from deceitful lenders who mismanage borrowers’ payments, ignore borrowers’ pleas for relief, and prey on our vulnerable residents.”

The New Student Loan Borrower Bill of Rights Amendment Act of 2024 makes the following reforms:

• Reestablishes the District’s authority to license and regulate federal student loan servicers;

• Adds supportive protections for student loan borrowers by requiring servicers to provide responses to inquiries from borrowers regarding their services and notices relating to the status of their loans, creating smoother processes for cosigner release, and eliminating debt for those with total or permanent disability;

• Prohibits unfair, deceptive, or abusive acts and practices by expanding consumer protections to include student loan servicers operating within the District; and

• Extends the right of relief offer under the existing DC consumer protection law to cover student loan borrowers.

“I initially introduced this bill in 2021, and I appreciate Councilmember Kenyan McDuffie and the Committee on Business and Economic Development for moving this legislation, and I look forward to working with the Department of Securities, Insurance, and Banking and the Office of the Attorney General to ensure its successful implementation,” concluded Councilmember Henderson.  

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