The Biden Administration Repeals a Trump-Era Student Loan Policy
The U.S. Department of Education (ED) scrapped another Trump-era policy on student loans, enabling state governments to resume oversight of loan servicers on behalf of borrowers within their borders.
In March 2018, the ED under former Education Secretary Betsy Devos posted a legal interpretation on the Federal Register — a publication kept by the federal government about proposed rules and public notices — that effectively blocked state governments and attorneys general from taking certain actions against student loan companies that engaged in allegedly illegal practices.
On Monday, the ED under current Education Secretary Miguel Cardona posted a new interpretation that provides state regulators with greater ability to oversee how student loan companies interact with borrowers and take action against abusive or deceptive practices that harm consumers.
