Van Duyne Introduces Legislation to Address Predatory Lending in Higher Education
This week I intoduced the Combating Predatory Lending in Higher Education Act, which would amend the Higher Education Act of 1965 to now include loans made out to graduate students and parents and amend the Cohort Default Rate (CDR) so that any default in these loans is now included in the calculation.
Since the Department of Education does not publish default rates for loans to graduate students, these students often take out unrealistic student loans – a practice otherwise known as predatory lending. This expansion of lending has increased financial burdens on graduate students in recent years.
Students should have the opportunity to pursue higher education without fear of predatory loans hindering their ability to learn. It is my hope this bill will give our aspiring students the ability to freely cultivate their young minds and reach their full potential.
This bill is designed to help students by allowing them to spot a predatory university that takes a Federal Direct PLUS loan, or a loan made on behalf of a dependent and would most likely default on the loan.