Illinois state senators are debating whether to impose more regulations on student loan servicers.
The legislation would require the companies to get a state license to operate in Illinois.
Attorney General Lisa Madigan says the proposal would also require her office to create a student loan watchdog over the industry.
Madigan's office sued Navient - one of the largest student loan servicers - for not always putting borrowers in the cheapest or best payment plans.
"These borrowers are the ones who often move back home because they don't have the financial resources or the credit to purchase a home, to rent an apartment, to purchase or finance a car, and start a family."
The proposed measure has passed a state Senate committee - but still needs approval from the full House and Senate.
