Obama proposes bill to address federal student loan system complaints

In an effort to address complaints about the federal student loan system, President Obama will introduce the "Student Aid Bill of Rights."

The new bill proposes ideas to create a new "complaint system so grievances filed by students and borrowers are referred to regulators and law enforcement agencies" as well as "mandatory disclosures by the Education Department when borrowers' accounts are shuffled between loan companies." In addition to the Bill, the White House will release a fact sheet in which it explains that the proposals "will help borrowers responsibly manage their debt, improve federal student loan servicing and protect taxpayers' investments in the student aid program."

The federal loan system has long been met with complaints about the lack of protection of students from companies that manage their monthly loan payments and schools that deceive students into taking out federal loans.   

"The president is rightly prioritizing much-needed consumer protections for borrowers, and we urge the actions he's calling for are taken as quickly as possible," Institute for College Access & Success President Lauren Asher said. 

Read more at Huffpost College.

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