2019 Legislative Wins

For-Profit College Student Protections

This session, Maryland passed SB 400/HB 461, making us the first state in the nation to stop for-profit schools from pretending to convert to nonprofit status in order to skirt regulations put in place for these predatory high-debt, low-return schools.

This legislation, sponsored by Senator Pinsky (D-22) and Delegate Hettleman (D-11), ensures that schools operating with for-profit interests – even if they are classified as nonprofits – are still treated as for-profit schools by our state regulators. By reworking these definitions, Maryland is making sure that schools receiving the benefits of a nonprofit status do not have a financial stake in exploiting students and do not ruin the name of nonprofits around the state. We are thrilled to be the first in the nation to put these protections in place. This legislation will help the 30,000 students currently attending for-profit schools in our state, as well as countless prospective students.

We also passed HB 399/HB 464, which includes mandatory pre-enrollment disclosures for prospective students at for-profit colleges. This legislation is an important step to provide greater transparency for those considering a for-profit school.

Curbing Abuses by Student Loan Servicers

Attorney General Frosh led a bill (SB 670/HB 594) to create a list of prohibited practices for student loan servicers. While a servicer is supposed to help a borrower safely and affordably repay a loan balance, this industry has well-documented practices of harming student loan borrowers and adding billions of dollars to the already massive student debt crisis. We are proud to have supported this bill on behalf of our many members who carry student loan debt and have been failed by their servicer throughout the repayment process.

This bill will affect more than three-quarters of a million Maryland borrowers who now owe more than $32 billion in student loan debt. It will help create clear guardrails for the 112,000 Maryland students who today are at least two student loan payments behind.

Removing the “Widow’s Penalty” from Driving Up Home Insurance Costs

This year, Delegate Sydnor (D-44B) and Senator Hester (D-9) joined together to pass legislation that ensures that homeowner who has lost their spouse doesn’t see an increase to their home insurance costs.

Because single people pay more than married people for home insurance, many grieving widows and widowers experienced more expensive policies after their partner passes away. SB 607/HB 191 removes this “widow’s penalty” from home insurance in our state.