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Washington's new law regulating student-loan servicers could face legal challenge from feds
The Seattle Times: The ink is barely dry on a new law that will regulate student-loan servicers in Washington, but the state could soon be drawn into a legal fight with the U.S. Department of Education, which claims states have no authority to regulate the industry.
In passing a student-loan bill of rights this year, Washington joined a wave of other states that are cracking down on the private companies that handle the paperwork after a student graduates and begins paying off his or her student loan.
The new Washington law requires student-loan servicers to be licensed by the state and creates a student-loan advocacy office.
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