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PROVIDENCE, R.I. (AP) — Rhode Island U.S. Sen. Jack Reed says the nation needs to take significant steps to address the student debt crisis threatening the economy.
Reed has introduced the Protect Student Borrowers Act of 2015 to make colleges more accountable for student indebtedness. Institutions would be required to assume some of the financial risk of student loan default based on the percentage of their graduates and former students who default.
He says his bill will provide incentives and support for institutions to help students effectively manage their debt and reduce defaults.
Reed says student loan debt exceeds an estimated $1.2 trillion, and many borrowers continue to struggle to repay their loans.
Reed is also calling on the administration to institute a one-stop student loan complaint system at the Consumer Financial Protection Bureau.