New York Governor Andrew Cuomo has announced the creation of a new 'student protection unit' as an investigation is launched into the student 'debt relief' industry.
Cuomo's newly established Student Protection Unit took its first official action by issuing subpoenas to 13 student debt relief companies.The Unit is probing concerns that this industry is charging high, improper fees without adequate notice for enrolling students in debt relief programs that are available for free through the federal government.
The Massachusetts legislature has formed a subcommittee to gather data and hear from students and educators across the commonwealth on the real impact of student loan debt.
Democratic State Representative Paul Mark, of the Second Berkshire district, a member of the Joint Committee on Higher Education, is serving as co-chair of the five member subcommittee that is tasked with investigating the rapid rise of student loan debt among current students and recent graduates.
Last year students at colleges across the region, and across the country, became concerned that interest rates on Stafford loans were set to double. Congress blocked the increase - but it was not a permanent measure. Vermont Congressman Peter Welch is renewing his efforts to stop the rate hike.