Since I walk to work, I rarely get a chance to read the Washington Examiner which I imagine I would if I took the Metro. But I got a chance to see yesterday’s paper, which reported that the D.C. Council took a major step in preventing “payday lenders” from exploiting the desperation of low-income workers. The Council passed a bill restricting payday lenders from charging absurdly high interest rates that often trap consumers in an endless cycle of debt.

So why is this worth mentioning on a blog for college students? Because the Council’s bill was influenced by a college student’s policy proposal. Ben Lazarus, who will be a sophomore at Yale next year, testified before the Council two weeks ago, presenting a proposal for predatory lending reform he co-wrote with five other members of the Roosevelt Institution.  

The Council voted 12-0-1 to cap interest rates at 24 percent. Lazarus pointed to the fact that no councilmember voted against the bill as evidence that “predatory lenders have no constituency.”

The Council bill didn’t adopt all of Lazarus’ recommendations (for a summary of them, click here). For example, Lazarus calls for caps on “all small loans” so that “lenders will be unable to continue modifying loan terms to avoid regulation.” The D.C. legislation, however, allows lenders to offer “two-week quick cash fixes” without any restrictions.

But it’s still a huge step in the right direction towards protecting America’s workers from exploitation. Lazarus will be presenting on predatory lending reform at tomorrow’s Roosevelt Institution Policy Expo, alongside a host of young people who are making a difference in politics by weighing in with practical solutions which policymakers are adopting around the country.