Gilly alert on loan ripoffs

SEN. KIRSTEN Gillibrand is pushing for new regulations on student loans after the Trump administration announced it would close an office dedicated to protecting borrowers.

Gillibrand (D-N.Y.) said the move could subject more graduates to predatory practices by lenders.

She said Sunday she would push two pieces of legislation. One would cut interest rates for student loan borrowers and the other would automatically enroll borrowers in income-based repayment programs for which they’re eligible, reducing their monthly payments in many cases.

Graduates in New York have higher average loan debt than those in the rest of the country.

“Thousands of New Yorkers are graduating from college this time of year, and many of them will already be buried in student debt from the moment they walk across the stage and get their diploma. But instead of helping them out, the Trump administration just passed new rules that make students even more vulnerable to predatory loan practices that could push them into financial despair,” Gillibrand said.

“We need real oversight of our student loan servicers, and we need to make sure that students can actually pay back their loans without defaulting.”