The Attorney-General’s office is stepping up efforts to combat student loan debt.
The Attorney-General’s office is stepping up efforts to combat student loan debt.
The state of Washington has recovered more than $2 million on behalf of student loan borrowers, the state’s attorney-general announced on Oct. 17. The move comes amid growing concerns about student loan debt in the state and across the country.
The latest restitution is an essential part of the Student Loan Initiative, which aids Washingtonians in securing and repaying student loans, said Attorney-General Bob Ferguson.
Student loan debt, a problem for Washingtonians
According to a study by the Brown Center on Education Policy at Brookings, about half of all first-year students in the US “seriously underestimate how much student debt they have,” and fewer than a third can provide a reasonable estimate. The majority of students in Washington graduate with an average debt of $24,000, a figure that continues to rise with each graduating class.
Legal action against predatory debt companies
The recovered funds come after the attorney general’s office took action against debt adjustment companies that used predatory practices, illegally charging exorbitant fees to borrowers. According to a report, the office has resolved cases against 35 financial entities, resulting in payments averaging almost $800 for 2,652 borrowers in Washington.
The Attorney-General’s office encourages anyone in Washington who believes they might have been overcharged on their student loans to file a complaint with its Consumer Protection Division.
As the student loan crisis deepens, this significant recovery by the attorney general’s office underscores the growing need for financial transparency and legal oversight in the student loan industry.
