Source: United States Senator for Ohio Sherrod Brown
WASHINGTON, DC – U.S. Senator Sherrod Brown (D-OH) applauds the Department of Education’s (DOE) decision to respect the authority of states to regulate student loan servicing companies that operate within their borders. This announcement means states can increase oversight and accountability and better ensure that federal student loan borrowers, students, and taxpayers are protected.
“Today is a good day for the about 42 million Americans who have federal student loans,” said Brown. “Making sure each state can independently regulate and monitor student loan companies will make sure borrowers are protected from shady lenders who act inappropriately.”
The DOE’s announcement will mean states will be able to do things like enforce borrower bills of rights or other laws related to servicing federal student loans. It reverses a March 2018 legal interpretation that preempted state efforts to regulate federal student loan servicers.
The decision will go into effect next week.
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