DENVER (CBS4) – Colorado lawmakers are trying to help college graduates who are struggling with student debt.
The House gave initial approval on Thursday to a bill that would require the state to regulate and license companies that provide student loans.
College students offered testimony about companies that purposely mislead them about interest rates and payment plans.
“What’s happening is these people are being put in forbearance without their knowledge, they’re not being told about different payment plans that could help them pay off their debt sooner, and they’re not getting information in a timely matter that they need to be responsible,” said Rep. Faith Winter, a Democrat representing Adams County.
Under the bill, students would be able to file complaints with the attorney general. Depending on the results of a follow-up investigation, the lending company could lose their license.
Winter says the average student is graduating with $25,000 of debt.