A bipartisan group of 30 attorneys general signed on to a letter Thursday opposing House legislation to reauthorize the Higher Education Act over a provision that would bar states from regulating student loan servicers.
The letter comes after multiple state officials last week criticized Education Secretary Betsy DeVos over a pre-emption notice that declared the federal government holds exclusive authority to oversee loan servicing companies.
A provision in the PROSPER Act, as House Republicans’ HEA update is known, would made explicit in federal law the same principle.
The attorneys general argued in their letter that state-led investigations have revealed abuses by both for-profit education companies and large servicers.
Read more at Inside Higher Ed: https://www.insidehighered.com/quicktakes/2018/03/16/ags-oppose-prosper-act-over-ban-state-oversight-loan-servicers
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