Previous legislation was in place to help students with federal student loans, but with the FAIR Student Credit Act in place, that leeway is now extended to private loans that come from credit unions or banks.

"Access to higher education is absolutely critical for everybody to advance their career but unfortunately it is an expensive endeavor and most students aren't able to afford it without the use of loans," said Peters, who also went on to say that back in when he was in college, it was possible if you had some help from your parents, a scholarship and a job, you could get through school without a loan.

However, Peters said even if one is to do all three of those things today, many times, a loan is still needed.

Currently, Peters said there are 850,000 students in the country who are defaulting on their student loans, which adds up to about $8 billion in debt. When a student's loan goes into default, it gives them a bad credit score and makes it difficult to buy a car or rent an apartment.

"What my legislation does, is to ensure those students who may have defaulted get a second chance," Peters said.

About a dozen past and present MSU students also joined Peters Monday morning in the MSU Union to show their support and appreciation for the bill, including alumna Stephanie Ly, who took out private loans when she was a student at the University.

"I am worried that someday, something might happen -- unexpected job lay off or illness -- and that would prevent me from keeping up with my student loans," Ly said. "I should have the same opportunity as other federal loan borrowers to rehabilitate my loan, make affordable payments and remove a default from my credit report."