The Massachusetts Senate unanimously passed a bill on Wednesday regulating student loan servicers, which, if it becomes law, will likely set up a clash between Massachusetts and the federal government.
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The Massachusetts Educational Financing Authority, a student loan agency, announced Wednesday that it is ending its membership in a national group that has been lobbying the US Department of Education to ease regulations on loan servicers.
The U.S. Education Department wants states to defer to federal oversight of the companies that service the billions of dollars in student loans that it issues, but the states are not going down without a fight.
A new report has revealed the extent of student loan debt in Massachusetts, finding that 855,500 borrowers owe a total of $33.3 billion.
A confidential draft memo drawn up by the U.S. Department of Education lays out the case for why states, including California, should abandon their own laws for student-loan servicers and let the feds allow these for-profit companies to skate by with considerably less oversight.
The Department of Education is reportedly planning to argue that federal law supersedes state regulations overseeing student-loan companies.
A new study out from the nonprofit Massachusetts Budget and Policy Center shows that state cuts to public higher education since 2000 have led to massive growth in average debt for graduates.
The Trump administration is taking steps to shield student loan collection companies from state regulators, over the objections of consumer advocates and even some Republican attorneys general.
Siding with a student loan servicer, the federal government has accused Massachusetts Attorney General Maura Healey of overreaching with her lawsuit accusing the Pennsylvania Higher Educaiton Assistance Agency of unfair and deceptive practices.
Amanda Lawson-Ross planned her career around a government loan forgiveness program. But after making payments for four years, it turns out she doesn’t qualify.