Sen. Kirsten Gillibrand On Student Loans

Ethan Harp/WCBS 880

Gillibrand: College Students Are At Risk From Predatory Student Loans

May 21, 2018 - 2:16 pm
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NEW YORK (WCBS 880) -- College graduates could be at a greater risk of defaulting on their student loans after a move by the Trump administration, according to U.S. Sen. Kirsten Gillibrand (D-New York).

As WCBS 880’s Ethan Harp reported, Gillibrand on Sunday offered a less-than-celebratory prediction for the class of 2018.

“Many of them will be buried in student debt from the moment they walk across that stage and get their diploma,” Gillibrand said.

She warned they are facing a greater risk of getting ripped off by predatory student loans, because the Consumer Financial Protection Bureau is folding its office devoted to investigating at abuse at another part of the agency.

“That could force students to pay higher monthly payments and face high interest rates right when they’re entering the workforce, right when they can least afford it,” she said.

Gillibrand worries that those from low-income families are especially at risk, such as Almamy Conde of the Bronx.

“Even though I’m a first-generation college graduate, I’m scared of my future,” Conde said. “I’m scared of my student loan debt.”

A representative of the CFPB told The Hill that there is “no functional or even practical change” in its work.

Gillibrand is pushing a bill that would automatically enroll students who cannot pay their monthly loans into repayment programs, based on what they earn, to avoid default.