Education Department rescinds Trump-era policy restricting state oversight of student loan servicing companies and debt collectors
CNN
The Department of Education under the Biden administration is rescinding a Trump-era policy that restricted states' access to records and information in policing student loan servicing companies.
Richard Cordray, the head of the Federal Student Aid office, announced new guidance Friday that he argued would "make it easier" for state attorneys general and regulators to get information from the FSA and the companies the Education Department hires to manage the federal student loan program. The new guidance is a reversal of the government's approach to regulating student loan companies, after the Education Department under then-Secretary Betsy DeVos argued that the federal government should be monitoring the system since the loans are federal assets and fought to curtail states' involvement in oversight.
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