Bill creates a new licensing process for student loan servicers in the Division of Banks and empowers state officials to investigate and fine loan servicers 

BOSTON — Senator Sal DiDomenico (D-Everett), Senator Patricia Jehlen (D-Somerville), and Senator Joe Boncore (D-Winthrop) recently joined their colleagues in the Massachusetts Senate in passing the “Student Loan Bill of Rights,” which gives greater protections to student loan borrowers in disputes with companies servicing their loans.                                                  

The bill, S.2380, An Act establishing a student loan bill of rights, requires student loan servicers to be licensed companies with the state Division of Banks, and empowers state officials to investigate the servicers and take action against those that violate the state’s banking and consumer protection laws.

 The bill also supports the ongoing work of Attorney General Maura Healey’s Student Loan Assistance Unit by establishing a Student Loan Ombudsman in the Attorney General’s Office, who will lead efforts respond to complaints from student loan borrowers and help them understand their rights.

 “It’s no secret that as the cost of higher education continues to rise, students are taking on more and more debt to cover the costs,” said Senator Sal DiDomenico. “Unfortunately, this problem is made worse by the fact that many of them are also being taken advantage of by predatory student loan companies who use deceptive practices to force students into costly repayment plans. This bill is an important next step in the Senate’s ongoing effort to fight exploding student debt by cracking down on the abuses in the student loan industry to better protect our students and families.”  

 "Each year, young people in our district and across this country put themselves into tens of thousands of dollars or more of debt to further their education. This legislation takes important steps to protect students during the borrowing process, offering greater information at the state level and ensuring that lenders maintain transparent and fair practices,” said Senator Pat Jehlen. 

 "Student debt is a seminal issue for our generation," said Senator Joe Boncore. "The rising cost of college has hindered the economic development of a generation. This bill is a first step toward safe guarding the future for students and graduates."  

“A college degree has never cost so much. As a result, students are taking on substantial debt, and they are being taken advantage of by servicers who use deceptive practices and wrongly steer them into costly repayment plans. While the Trump Administration, led by Education Secretary Betsy DeVos, continues to side with large for-profit student loan servicers and strip away protections for student loan borrowers, we in Massachusetts are standing up to protect our residents from predatory student loan companies,” said Senator Eric P. Lesser (D-Longmeadow), lead sponsor of the bill in the Senate.

 “As public officials, it is our duty to ensure fair and appropriate lending – especially in the student loan industry,” said Senate President Harriette L. Chandler. “This legislation ensures that Massachusetts residents receive robust consumer protections and that the student loan industry is given the proper level of oversight. I want to thank Senator Lesser for his leadership on this issue.”

“Taking on abuses in the student loan industry has long been a priority of my office. That’s why, in 2015, we created a Student Loan Assistance Unit to help borrowers with their student loans,” said Attorney General Maura Healey. “I thank Senate President Chandler, Senator Lesser and the Senate for providing new resources and tools to protect Massachusetts students and families.”

 Under the bill, student loan servicers would have to apply for licenses from the state, which the Commissioner of Banks could revoke if the servicer is engaged in abusive practices such as overcharging students or steering them into costlier repayment plans to make higher profits.

 Student loan servicers that break state licensing requirements or take advantage of students could be fined and forced to repay student borrowers under the bill.

 The bill now goes to the State House of Representatives, where it awaits further consideration.

###

Senator DiDomenico addresses over 700 social work professionals and students at the Emmanuel Church of Boston

Senator DiDomenico serves as a panelist at NASW’s legislative workshop on the Senator’s bill to lift the cap on kids.

BOSTON- Senator Sal DiDomenico recently served as the keynote legislative speaker at National Association of Social Workers (NASW) 2018 Legislative Education and Advocacy Day (LEAD) at the State House. LEAD is an annual event sponsored by the Massachusetts Chapter of NASW that brings together hundreds of social work students and professionals to the State House. The goal at LEAD is to engage social workers in learning about current legislative issues in Massachusetts affecting them and their clients and to allow them to participate in the legislative process and experience lobbying and advocacy firsthand.

 LEAD began at the Emmanuel Church of Boston, where Senator DiDomenico addressed over 700 social work professionals, graduate students, and staff before their “March for Social Work Values” to the State House. At the kick-off event at the Emmanuel Church, DiDomenico spoke about the important role that advocacy plays on Beacon Hill in shaping policy and influencing social, racial, and economic justice issues.  

 “It was a pleasure speaking to the hundreds of social workers and students at LEAD, and sharing with them my thoughts and tips on how they can become powerful activists for their profession, clients, and the causes they believe in,” said Senator DiDomenico. “Social workers change lives every day, and I want to thank them for their work and passion for helping others. Great job as always by the Massachusetts Chapter of NASW and thank you to their Executive Director Rebekah Gewirtz and her team for having me take part in yet another successful LEAD event!”  

Following the march to the State House, the social workers visited with dozens of legislators and participated in legislative workshops. Senator DiDomenico served as a panelist at one of these workshops on his bill, An Act to lift the cap on kids. The cap on kids denies benefits to children conceived while- or soon after- their family received assistance. As a result of this cap, Massachusetts denies benefits to 9,500 children, causing their whole families to suffer. 

DiDomenico was joined on the panel by the House sponsor of the bill, Representative Marjorie Decker, as well as Deborah Harris of Massachusetts Law Reform Institute and Naomi Meyer of Greater Boston Legal Services. Together, they discussed the critical role that lobbying and advocacy has played in their efforts to repeal the family cap and why this piece of legislation is so important to social workers and their clients.

An Act to lift the cap on kids has received a favorable report from the Joint Committee on Children, Families, and Persons with Disabilities and is currently pending before the Senate Committee on Ways & Means.

###

EVERETT- Senator Sal DiDomenico once again brought members of the Joint Committees on Ways & Means to Everett for a public hearing on the Governor’s budget proposal for the Fiscal Year 2018. The hearing was held on Tuesday, March 19 at 10 a.m. at Everett High School, and was one of eight hearings taking place across the state to aid legislators in the development of the state budget.

Each year the Joint Committee on Ways and Means holds a series of hearings to give government officials the opportunity to testify before the legislators who draft their budget recommendations.  As Assistant Majority Leader of the Massachusetts Senate and a member of the Senate Committee on Ways & Means, Senator DiDomenico was responsible for deciding where to hold one of these public hearings, and this is the fifth time that he has brought this important discussion to Everett High School.

“It was a pleasure to once again bring the members of the Joint Committee on Ways & Means to Everett for our public hearing,” said Senator DiDomenico. “I am also proud to have my colleague, Everett’s Representative Joe McGonagle as a co-chair for this hearing. Each year, I receive wonderful reviews from members of the Legislature regarding how impressive the Everett students and faculty are, and I was thrilled to once again show them why Everett’s Schools are Everett’s Pride.  The student ambassadors, musicians, and culinary arts team always shine and make this event a memorable experience for everyone in attendance.  I would like to thank Superintendent Fred Foresteire, the Everett School Department and Principal Erick Naumann for graciously welcoming the committee to Everett High School again, and for all their help in making this hearing a success yet again.”

Representative McGonagle added “In addition to showcasing Everett High School’s outstanding students and programs, we were able to hear some very specific information on proposals for the FY19 State budget.  I am strongly advocating for Everett as a location for a State career center which among other things would help to retrain workers for jobs in today’s new economy – health care, biopharmaceuticals, and other emerging industries”. 

Each Ways & Means hearing is focused on a particular subject such as education and local aid, environment and energy, and health and human services. The hearing in Everett covered economic development, housing, and labor and workforce development. Secretariats and representatives from the Executive Office of Housing and Economic Development, the Office of Consumer Affairs and Business Regulation, Labor and Workforce Development, Libraries, Massachusetts Cultural Council, Cannabis Control Commission, and the Commission on the Status of Women offered testimony.

Senator Sal DiDomenico served as Vice Chair of the Senate Committee on Ways and Means for over three years, and was recently elevated by Senate President Harriette Chandler to serve as Assistant Majority Leader. With his promotion, he has also maintained his membership of the powerful budget writing committee.

###