WASHINGTON, D.C. – Today, The U.S. Department of Education announced its support of state laws and regulations addressing student loan servicing issues. This action reverses and corrects the anti-borrower position of the previous Administration, which attempted to block state governments from protecting their borrowers against predatory behavior by student loan servicers.
Center for Responsible Lending Senior Policy Counsel Whitney Barkley-Denney made the following statement:
We are pleased the Department of Education and Federal Student Aid office have acknowledged the importance of states in protecting borrowers from the harmful practices of student loan servicers, which have long been allowed to mishandle student accounts, adding unnecessarily to their debt burdens.
Even as the former Department of Education’s leaders refused to hold student loan servicers accountable, over a dozen states around the country have stepped up to reform practices that harm their citizens. With this announcement, state and federal policymakers can confidently work hand-in-hand to resolve the abuses that plague borrowers across the country, for the sake of families with student debt and for the overall economy.
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