R 130

2021 -- S 0281 Enacted 03/23/2021

S E N A T E   R E S O L U T I O N

RESPECTFULLY REQUESTING THAT THE OFFICE OF THE POSTSECONDARY COMMISSIONER FORM A WORK GROUP TO CONDUCT A THOROUGH REVIEW INTO HOW RHODE ISLAND CAN PROTECT STUDENT LOAN BORROWERS

Introduced By: Senators Gallo, and Lombardo

Date Introduced: February 18, 2021

WHEREAS, Outstanding education debt in the United States has tripled over the last

decade. As of 2020, student loan debt in the United States totals approximately $1.67 trillion; and

WHEREAS, The Federal Family Education Loan (FFEL) Program is a bank-based

federal loan program that is held by the Department of Education or guaranty agencies; and

WHEREAS, In Rhode Island, the average student loan debt is $31,781; and

WHEREAS, Nearly 7 million people with $138.57 billion in FFEL loans are held by

guaranty agencies and almost half of the outstanding defaulted student debt is from the FFEL

program; and

WHEREAS, Prior to the COVID-19 pandemic, the United States Department of

Education had removed protections for student loan borrowers, including barring debt collectors

from charging high fees, up to sixteen percent of the principal and accrued interest, on past-due

loans; and

WHEREAS, On March 20, 2020, the office of Federal Student Aid began providing

temporary relief due to the pandemic, however, how long those measures will continue is

unknown; and

WHEREAS, Rhode Island should proactively find state solutions for student loan

borrowers in Rhode Island because the rollback of protections that such borrowers are currently

afforded by the federal government will not continue indefinitely; now, therefore be it

RESOLVED, That this Senate of the State of Rhode Island hereby respectfully requests

that the Office of the Postsecondary Commissioner form a work group to conduct a thorough

review into how Rhode Island can protect student loan borrowers and to make recommendations

on or before January 14, 2022, to the President of the Rhode Island Senate and to the Speaker of

the Rhode Island House of Representatives regarding student loan protections. Such

recommendations should consider the best agency to provide those protections, and necessary

statutory and regulatory amendments. The work group should include the Treasurer’s Office, the

Office of the Attorney General, Rhode Island Student Loan Authority, private student loan

providers, members of the Rhode Island General Assembly, current and former students with

student loan debt, and other key stakeholders; and be it further

RESOLVED, That the Secretary of State be and hereby is authorized and directed to

transmit duly certified copies of this resolution to Peter Neronha, Attorney General; Seth

Magaziner, General Treasurer; Dr. Shannon Gilkey, RI Commissioner on Office of the

Postsecondary Education; Tim DelGiudice, Chair of the Council on Postsecondary Education;

and Charles P. Kelley, Executive Director of the Rhode Island Student Loan Authority.

========

LC001203

========