PORTLAND, Maine (4/23/13)--The Maine Credit Union League-backed student loan bill is now law, according to the league.
The act, which authorizes insurance on student loans, and unanimously passed the Maine Senate and passed the Maine House 142-1, became law April 16. The law permits the Finance Authority of Maine to offer loan insurance on supplemental student loans and likely will allow more credit unions to provide student loans to consumers (Weekly Update April 19).
Earlier this month, the Credit Union National Association released the result of its first annual High School Student Borrowing Survey (News Now April 17). The survey has been picked up by some national media, including Bankrate.com and The Wall Street Journal.
The CUNA survey found that nearly half of high school seniors don't know how much they will need for college costs, CUNA said.
Eighty-three percent did not know the interest rates for student loans, and 77% didn't know the duration of their existing or anticipated college loans, CUNA said.
CUNA is lobbying the federal government to allow student loans of a longer duration than the current 15-year standard because most borrowers are taking out more loans for larger amounts.
In other Maine legislative action, the state Labor, Commerce, Research and Economic Development Committee voted LD 1195 "Ought Not to Pass." The bill would prohibit employers from obtaining consumer reports that contain information regarding creditworthiness, credit standing, credit capacity, debts, check-writing experience or insurability of an employee or prospective employee. The Maine League provided testimony in opposition to the bill.