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. 

“Student loans are critical for Minnesotans to have access to and afford college, and they deserve a process for repayment that gives them consumer protections,” Commerce Commissioner Grace Arnold said, “We want Minnesota student loan borrowers to know that, as you’re working hard to repay your student loans, you have rights when it comes to dealing with student loan servicers.” 

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.  

Rep. Zack Stephenson and Sen. Tou Xiong were the two leading legislators who sponsored the bills and advocated for the Student Loan Borrower Bill of Rights and Student Loan Advocate for passage by the Minnesota Legislature.    

Rep. Stephenson, House Commerce Committee chair, said, “For too long, large private loan servicing companies have taken advantage of students. With the passage of these bills, we’ve taken action to protect students. Going forward, students will no longer be subject to inaccurate, deceptive and mispresented information. Minnesota students deserve protection from the abuses of the student loan industry, and this legislation delivers it.” 

Sen. Tou Xiong said, "I want Minnesota students to know they have rights and deserve transparency in lending as a student loan borrower. The Student Loan Borrower Bill of Rights and the Student Loan Advocate ensures students have necessary protections as consumers. We have seen instances of private lending companies defrauding students, which is all the more reason student loan education is necessary. Minnesota is the 15th state in the nation to pass a borrower’s bill of rights for students and is ranked number 5 in average student debt with the average Minnesota borrower owing $37,000. We are making way for Minnesota to be one of the most responsible states for student loan lending and education." 

Metro State University President Ginny Arthur said, “Metro State University takes multiple steps to educate and advise students on the loan borrowing process. However, upon graduation, those borrowers are on their own and are solely responsible for communications with loan servicers and, due to complexities of federal student loans, it's challenging for borrowers to grasp requirements and repayment options.

“The pause on repayments during the pandemic has compounded borrowers' confusion," Arthur added. "Given the multitude of changes to student loan programs over the years, Commerce's Student Loan Advocate and the Borrower Bill of Rights are important to assist students in the navigating processes with servicers, to explain their rights as borrowers, to license and exam servicers, and to assist with complaints." 

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.  

As a guide for student loan borrowers, Commerce has created a “stress less” student loan borrower digital toolkit:  

• Checklist for Student Loan Borrowers  
• Services and contact info for Commerce’s new Student Loan Advocate  
• Explanation of consumer protections in Minnesota’s Student Loan Borrower Bill of Rights  

Student Loan Borrower Bill of Rights and Student Loan Advocate Services Media Event: 
View the press event on Commerce YouTube channel

March 28, 2024
Speakers: Minnesota Commerce Commissioner Grace Arnold, Rep. Zack Stephenson, Sen. Tou Xiong, Metro State President Ginny Arthur and Emma Gabbert, Metro State student representative

Connect with the Minnesota Commerce Department
Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.

MEDIA CONTACT:
Mo Schriner, Director of Communications  
Minnesota Department of Commerce 
mo.schriner@state.mn.us

Kristen Glazer, Assistant Director of Communications
Minnesota Department of Commerce 
kristen.glazer@state.mn.us