Education Policy, Business and Technology

Education Department Wants To Protect Student Loan Debt Collectors

NPR: Student loan debt collectors have been accused of deceiving and abusing student borrowers and have been sued by attorneys general in a handful of states. Now, they may be getting some relief.

The debt collectors, that is. Not their customers.

In an internal document obtained by NPR, the U.S. Department of Education, under Secretary Betsy DeVos, argues that the nation's loan servicers should be protected from state rules that may be far tougher than federal law.

"Congress created and expanded the Direct Loan Program with the goal of simplifying the delivery of student loans to borrowers, eliminating borrower confusion, avoiding unnecessary costs to taxpayers, and creating a more streamlined student loan program," the memo reads. "Recently, several States have enacted regulatory regimes or applied existing State consumer protection statutes that undermine these goals."

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