The Department of Education’s announcement in May that it would rescind extensive requirements for loan servicers previously issued by the Obama administration was a red flag to skeptics who already doubted Education Secretary Betsy DeVos’s commitment to protecting student borrowers.
Those requirements pressed servicers to be more active guides for borrowers seeking to pay off their student loan debt. And they said servicers would be judged based on outcomes for borrowers as well as the effectiveness of communications to borrowers, including special outreach to those at risk of default.
Despite assurances to the contrary from DeVos, many state lawmakers and regulators over the past year have responded by strengthening their own oversight regimes — in one case, by largely adopting the Obama requirements.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2017/11/27/servicers-and-states-seek-answer-devos-whether-feds-pre-empt-state-regulations
share