Rep. Takano: Education Department Betrays Students…Again

Washington, D.C. – Rep. Mark Takano (D-Calif.) released the following statement in response to the Department of Education’s “notice of interpretation” that exempts federal student loan servicers from state regulation.

“The Trump administration’s attempt to block states from holding unethical student loan companies accountable is a disgraceful escalation of its attack on students and the integrity of the higher education system. At a time when 42 million Americans owe roughly $1.4 trillion in federal student loans, it is remarkable that the Trump administration is more interested in shielding debt collectors from accountability than helping students who are drowning in debt.

“This decision puts student loan borrowers in a precarious situation. They are at the mercy of a student loan industry that has a habit of deceiving consumers, and their only protection is an administration that has taken every available opportunity to undermine consumer protections and support for-profit companies at the expense of students.

“The Education Department’s authority to exempt student debt collectors from state regulation will undoubtedly be challenged in courts across the country. But regardless of the outcome, this decision exemplifies a fact that is beyond dispute: President Trump and Secretary DeVos would rather defend corporate profits than vulnerable students.”

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