Consumer protection for student loan borrowers

Student loan borrowers who are overwhelmed at the thought of repaying their student loans have an advocate in their corner. Minnesota’s Student Loan Borrower Bill of Rights law and the new Student Loan Advocate at the Minnesota Department of Commerce provide consumer protections and debt relief.

The Student Loan Borrower Bill of Rights law passed by the Legislature with bipartisan support in 2021, gives Minnesotan borrowers consumer protections under the law, with “do’s and don’ts” that loan service providers must follow. The Student Loan Advocate program, created in 2023, offers education, advocacy and information for borrowers having challenges understanding their loan repayments with loan servicers.

In October 2023, student loan borrowers were required to resume repayments on their student loans, following three years of student loan repayments being suspended. While the federal government is the lender for most student loans, the loan repayments are managed by loan servicers. Dealing with student loan servicers can be challenging.