Governor Gavin Newsom signed a bill Friday that provides student loan borrowers with a "Bill of Rights," making California the first state in the nation to offer such protections.
Newsom signed Assembly Bill 376 into law, which establishes statewide standards for student loan companies and protects borrowers against unfair, deceptive and predatory practices by servicers and lenders.
State Assemblymember Mark Stone of Monterey, Santa Cruz and Santa Clara Counties wrote the bill. He said it provides transparency.
“It’s making sure that student loan borrowers have access to information, get treated consistently and when their loans are sold, that they’re told and that they carry with them, regardless of who the servicer is, the same level of rights,” Stone told KCBS Radio.
Stone said almost 4 million California borrowers hold a total of $147 billion in student loan debt.
“The student loan debt, as you know, is billions of dollars, and it’s not productive that it ties people down for years when they could be much stronger participants in our economies in all of our communities,” he added.
The legislation also establishes stronger protections for military personnel and their families.