CHICAGO — Gov. Bruce Rauner has vetoed a plan pushed by Illinois Attorney General Lisa Madigan aimed at protecting students who take out college loans.
Madigan says the proposal was intended to fight abuse and failures in the industry, part of an investigation and lawsuit her office brought against a loan servicing company. The measure would, among other things, require servicers to provide students detailed information, including their repayment options.
Rauner rejected the plan Friday, saying the intent is “laudable,” but the bill “encroaches on the federal government’s responsibilities” and would make the complex student loan process more confusing.
Madigan, a Democrat, accused the Republican governor of failing to “stand up” for students.
Backers plan to seek an override, which requires three-fifths majority House and Senate votes.
The legislation is SB1351.