Gov. Janet Mills signed the bill Thursday morning at the State House.
She said it creates a registry for student loan lenders who do business in Maine, prohibits them from committing fraud and misleading student loan borrowers, and allows the state to investigate lenders who violate the law.
"Paying back student loan debt is difficult enough without a profit-hungry lender trying to make it harder and more expensive. Some lender provide conflicting information on repayment plans, others provide little information at all. The result can be a student borrower who misses a payment or is forced into a repayment plan that charges more than they can ever afford," Mills said.
According to a study by Experian, student loan debt in Maine rose 94 percent, from $3.1 billion dollars in 2008 to $6 billion in 2018.