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The Fight in the States


July 2, 2019 | Student-loan servicer can’t use federal law to avoid lawsuit over alleged bad advice

The Chicago-based Seventh Circuit Court of Appeals unanimously decided last week that a loan servicer couldn’t allegedly go out of its way to misrepresent repayment options, and then use federal laws to shield itself from state rules barring deceptive business practices.

June 16, 2019 | Students Need Protection From Student Loan Lenders

“California should act to protect millions of its residents by being the first state in the country to adopt a law requiring student loan companies to treat borrowers fairly and giving borrowers the right to hold these companies accountable when they fail to meet basic servicing standards.”

September 6, 2018 | After Scaling Back Student Loan Regulations, Administration Tries to Stop State Efforts

“As state law enforcement officials and legislators across the political spectrum stand up for student loan borrowers who have been ripped off at every turn, Donald Trump and Betsy DeVos have instead chosen to protect companies engaged in rampant illegal practices…”

April 13, 2018Why Would the Government Stop States From Helping Student Borrowers?

“The states are inviting a fight—and given how much the current system can hurt students, it’s one worth having.”


March 3, 2018 | States to DeVos: We’ll Keep Cracking Down on Student-Loan Companies

“The DeVos Department of Education is trying to do everything it can to shield the profits and bad behaviors of student loan companies, but the Department does not have the authority to prevent Illinois and other states from enforcing and enacting state laws to protect student loan borrowers…”

October 2, 2017 | States Take on Student Debt Abuses as the Trump Administration Defaults

“People don’t realize how much of a ‘wild, wild west’ it is in the student loan market,… there are basic protections in other lending industries that student borrowers just don’t have.”

March 12, 2018 | Education Dept. Wants to Block States’ Student-Loan Rules. States Are Fighting Back.

“‘The California Department of Justice has been fighting tirelessly to protect our students against unscrupulous loan servicers, and we won’t stop,’ said Xavier Becerra, the attorney general of California, in a written statement. ‘We are prepared to defend the protections we secured for college students by making loan servicers accountable for their conduct every step of the way.'”

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