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State Regulators Ask Education Dept to Rescind Interference with Collector Regulation

  • Written by Steel Rose

In a letter to Education Secretary Miguel Cardona, the Conference of State Bank Supervisors (CSBS), joined by the North American Collection Agency Regulatory Association (NACARA), applauded recent steps by the Education Department toward recognizing state authority. However, more action is needed. 

“We appreciate that the Education Department has indicated that it recognizes state authority. However, more definitive action is necessary to better protect federal student loan borrowers, to allow effective supervision of student loan lenders and to respect the authority of the state system,” said CSBS President and CEO John Ryan. 

In particular, state regulators asked Secretary Cardona to rescind a notice issued in 2018 that broadly preempts state regulation of federal student loans servicers, to formally recognize that state regulation of federal student loans is independent from federal law and to enable state financial regulators to access federal student loan servicer and debt collection records. To read more click here.

Click here: to read the letter to Education Secretary Miguel Cardona.