Editor: Despite the harm this industry has caused, over $38 billion owed by students to the private student loan market has never been investigated. Unlike the other debt that Coloradans are struggling to pay during the pandemic, such as mortgages and credit card payments, this money is going to an industry that is not required to report crucial data to government agencies. We’re missing the information we need to ensure that these companies don’t prey upon millions of people. That’s why I’m urging everyone to support the Private Lenders Of Student Loans Acts And Practices Bill (SB21-057).
This lack of transparency allows predatory practices to go unnoticed by the systems designed to keep lenders accountable. The longer it takes borrowers to pay off their loans, the more lenders profit from interest rates that accumulate over time. This incentivizes companies to not tell people about all of their repayment options and other predatory practices like putting students in default because their cosigner declares bankruptcy. We know this is happening because victims are speaking out, but companies can deny wrongdoing as long as they are allowed to operate in the dark.
This bill will end all of these practices and more, so call your state legislators and demand they vote yes on SB21-057.
— Paulina Castle, via letters@sentinelcolorado.com