By: Michael Stratford
Lawmakers Urge Devos to Rescind Guidance on Student Loan Collectors
A bipartisan group of House lawmakers is calling on Education Secretary Betsy DeVos to withdraw her recent guidance that says states don't have the power to regulate some student loan companies.
Two Democrats and two Republicans today urged DeVos to rescind the policy, arguing that it tramples on states' rights to police the companies and protect students from predatory practices.
The Trump administration's guidance "attempts to create broad new legal standards not intended by Congress under the Higher Education Act and undermines state efforts to protect tens of millions of Americans with student debt," the lawmakers wrote in a letter to DeVos.
The letter was signed by Reps. Suzanne Bonamici (D-Ore.), Rob Bishop (R-Utah), Jared Polis (D-Colo.), and Mia Love (R-Utah). The lawmakers cited statements opposing the DeVos guidance from state banking regulators, attorneys general and the National Governors Association.
"We agree with the leaders in our states who are closest to the alleged abuses by the student loan industry," the lawmakers wrote. "They have warned that the Department's recent action will drive these companies deeper into the shadows and potentially harm consumers who are struggling under the weight of our nation's $1.5 trillion student debt crisis."
The Trump administration has argued that states lack the authority to regulate companies that are collecting federal student loans on behalf of the Education Department.
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