Ranking Member Scott Statement on ED Prioritizing Profits Over People
WASHINGTON – Ranking Member Bobby Scott (VA-03) issued the following statement after the Department of Education (ED) published a ‘notice of interpretation’ of state’s rights to protect federal student loan borrowers.
“In recent years, there have been numerous credible claims of servicing failures stemming from potentially unethical practices and purposeful misinformation provided to student loan borrowers. States under both Democratic and Republican leadership have rightly increased their investigation of such claims; implemented additional consumer protections for borrowers in their states; and where appropriate, taken legal action. States are well within their rights to enact and enforce consumer protection laws.
“Congress has not given the Secretary the authority to preempt state consumer protection law for student borrowers. House Republicans recognized this fact, as they are now attempting to grant this explicit authority to the Secretary in H.R. 4508 – their partisan bill to reauthorize the Higher Education Act. This bill has not, and should not, become law. I urge the Secretary to reverse this egregious overreach of Federal authority to rescind states’ ability to protect student borrowers and hold unscrupulous servicers accountable.”
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