OKLAHOMA CITY - A state lawmaker will attempt to address rising student debt during the 2020 legislative session.
After co-hosting an interim study on the student loan debt burden facing Oklahomans, Rep. Melissa Provenzano (D-Tulsa) has announced plans to introduce a “Borrower’s Bill of Rights” during the 2020 season. As drafted, the bill would bar student loan lenders from engaging in deceptive practices with respect to terms, fees, payments or the borrowers’ obligations. That would include not informing would-be borrowers about federal income repayment options before offering forbearance as an option and misapplying loan payments. Additionally, loan providers would be prohibited from providing inaccurate information to credit bureaus, including omitting payment histories.
According to the U.S. Department of Education, there is $1.48 trillion nationally in unpaid student loan debt nationwide, including a $14.5 billion balance in Oklahoma alone. With state appropriations decreasing from 47.7% to 27.9% of higher education operating expenses over the last decade, the average student loan debt load carried by Oklahomans has climbed to $31,678. “This bill isn’t necessarily about loan forgiveness,” Rep. Provenzano said. “This is about honoring the contract you signed, but incorporating fair and honorable practices.” Similar legislation is already on the books in Connecticut, Colorado, Illinois, Maine, Maryland, Nevada, New Jersey, New York, Rhode Island, and Washington. Bills regulating student loan lending processes have also been introduced, but not adopted, in seven more states, including Missouri and New Mexico.
A former teacher and school administrator in both the Tulsa and Bixby districts, Ms. Provenzano’s district is in southern Tulsa County with Tulsa Community College’s Southeast Campus straddling its border. Her co-sponsor on the interim study, Rep. John Waldron (D-Tulsa), has a district that ends literally across the street from the University of Tulsa.
State Sen. John Michael Montgomery (R-Lawton) also requested an interim study on student loan debt and its impact on Oklahoma’s economy. However, to date, the Senate’s Finance Committee has not scheduled a hearing for his study. “The response has been overwhelming,” Ms. Provenzano said. “People from all corners of the state have been contacting my office, wanting to share their stories after the interim study. “These are doctors, lawyers, nurses and other professional people who’d be buying a house or car. They are delaying that because of student loan debt.”