Biden administration rolls back DeVos rule limiting state authority over student loan companies

The Washington Post 

Danielle Douglas-Gabriel
August 9, 2021
The Education Department on Monday scrapped a Trump-era policy of shielding companies that manage its $1.5 trillion student loan portfolio from state regulation.

Instead, the department is encouraging states to work with the federal agency to protect borrowers and hold loan servicers accountable. The agency issued guidance clarifying that while federal law does preempt state regulation in some instances, states can go after servicers for deceptive practices, payment errors and other consumer protection matters.

Education Dept. opens door for student loan companies to ignore state authority
“Effective collaboration among the states and federal government is the best way to ensure that student loan borrowers get the best possible service,” Education Secretary Miguel Cardona said Monday. “We welcome public input on this interpretation and look forward to enhancing consumer protections for student loan borrowers by clarifying the relationship between federal and state law on this issue.”