Governor Newsom signs CFT-sponsored Student Borrower Bill of Rights

Dear John,

We are happy to report that last Friday Governor Newsom signed CFT co-sponsored AB 376, the Student Borrower Bill of Rights. This critical piece of legislation will bring much-needed reforms to the student loan market and regulate the private sector companies that service both federal and private student loans for California borrowers.

This bill will make California the first state in the nation to create a comprehensive set of rights for people holding student debt, by requiring student loan companies to treat borrowers fairly and giving borrowers the right to hold these companies accountable when they fail to meet basic servicing standards.

Currently, there are nearly 4 million Californians with a total of $147 billion in student loan debt. There are simply too many student loan servicing companies that mismanage student loans and conduct business in harmful and deceptive ways. The Student Borrower Bill of Rights will help hold these companies accountable.

Thanks to everyone who worked so hard on getting this legislation passed, including the hundreds of CFT members who wrote letters to the Legislature and the Governor, urging their support for this important bill. We are proud to have partnered with Consumer Reports, NextGen California, the Student Borrower Protection Center, Student Debt Crisis, and the Young Invincibles in sponsoring the legislation.

For more information about AB 376, and how student debt disproportionately impacts women and people of color, check out this article on the CFT website.

Are you interested in attending a CFT student debt clinic?

CFT student debt clinics cover the landscape of free and underused federal programs that help many student loan borrowers lower their monthly payments and, in some cases, even have their debt forgiven.

Already hundreds of CFT members have attended one of the CFT student debt clinics. If you are interested in an upcoming clinic, please email CFT Organizing Director Sandra Weese at [email protected].

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