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Ballard Spahr LLP

CFPB Student Loan Ombudsman: servicer errors plague student loan program

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The CFPB’s Student Loan Ombudsman has released his annual report, again emphasizing complaint volume without investigating all complaints, suggesting that states should acquiesce when the Department of Education promulgates...more

Orrick, Herrington & Sutcliffe LLP

CFPB analyzes borrower challenges in the first seven months of student loan repayments

On November 26, the CFPB published a report that provided an analysis of the first seven months following the resumption of federal student loan repayments after the Covid-19 forbearance ended on September 1, 2023. ...more

Orrick, Herrington & Sutcliffe LLP

Senate democrats take issue with student loan servicer’s terms of use

On November 3, Sens. Elizabeth Warren (D-MA), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), and Tammy Duckworth (D-IL) penned a letter to the CEO of a student loan servicer expressing concerns about the terms of use on...more

Orrick, Herrington & Sutcliffe LLP

DC bill establishes protections for student loan borrowers

On October 7, the Council of the District of Columbia enacted B25-0037 or the New Student Loan Borrower Bill of Rights Amendment Act of 2024 (the “Act”), which amends the Department of Insurance and Securities Regulation...more

Ballard Spahr LLP

Federal Judges Block Biden Student Loan Forgiveness Plan

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Two federal judges recently said that the Education Department lacked the power to reduce or cancel federal student loans under the SAVE program; an appeals court subsequently lifted the injunction in one case....more

Orrick, Herrington & Sutcliffe LLP

District Court approves $3.65 mil. settlement against student loan servicer

On June 24, the U.S. District Court for the Western District of Pennsylvania approved a class action settlement involving student loan borrowers brought against a student loan servicer....more

Orrick, Herrington & Sutcliffe LLP

Biden announces student debt cancellation for borrowers who attended “predatory” institutions

On May 1, the Biden Administration announced the approval of $6.1 billion in student debt cancellation for 317,000 borrowers who attended a system of art schools, which the Administration accused of engaging in deceptive...more

Troutman Pepper Locke

CFPB Reports on Student Borrowers’ Experiences During Return to Loan Repayment

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As federal student loan repayments resume after a three-year pause due to the COVID-19 pandemic, the Consumer Financial Protection Bureau (CFPB) published an Issue Spotlight on student borrowers’ experiences, using consumer...more

Troutman Pepper Locke

Massachusetts AG Settles With Major Student Loan Servicer for $1.8M Over Faulty Notices

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On January 11, Massachusetts Attorney General (AG) Andrea Joy Campbell announced a $1.8 million settlement with Nelnet, Inc. (Nelnet), one of the largest federal student loan servicers in the U.S., for allegedly sending...more

Orrick, Herrington & Sutcliffe LLP

Student loan servicer fined $1.8 million by Massachusetts Attorney General

On January 11, the Massachusetts Attorney General (AG) announced a $1.8 million settlement with a student loan servicer, to resolve allegations that the company did not properly communicate Income-Driven Repayment (IDR) plan...more

Cozen O'Connor

Vocational Training Program Prehired to Pay Back $4.2 Million, Cancel Outstanding Loans

Cozen O'Connor on

A bipartisan coalition of 11 AGs, in conjunction with the CFPB, reached a settlement with the bankruptcy trustee for Prehired, LLC and affiliated entities (collectively, “Prehired”) to resolve allegations that the company...more

Troutman Pepper Locke

California Publishes Notice of Second Modifications to Proposed Rulemaking Regulating Student Loan Servicing

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As reported here, on September 9, 2022, the California Department of Financial Protection and Innovation (CA DFPI) published a notice of rulemaking action, proposing amendments to the Student Loan Servicing Act....more

Ballard Spahr LLP

Oregon finalizes student loan servicer regulations with July 1 effective date

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On June 27, the Oregon Department of Consumer and Business Services’ (“Department”) Division of Financial Regulation (“Division”) finalized new regulations implementing Senate Bill 485, which requires companies to obtain a...more

Ballard Spahr LLP

Louisiana enacts new requirements for student loans

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On June 18, 2022, Louisiana’s Governor signed into law two new bills that impose new requirements for student loans.  Both bills are effective on August 1, 2022....more

Ballard Spahr LLP

New Jersey Names Student Loan Ombudsman

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Last week, the New Jersey Department of Banking and Insurance (DOBI) announced that it was designating Raghu Kakumanu as the state’s Student Loan Ombudsman. The DOBI opted to fill the role internally, as Kakumanu currently...more

Ballard Spahr LLP

California Student Borrower Bill of Rights Becomes Law

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California Governor Gavin Newsom has signed into law the Student Borrower Bill of Rights, AB 376, as part of a package of consumer protection legislation. He simultaneously signed AB 1864, which creates the Department of...more

Goodwin

NY Attorney General Settles with Debt Collection Company Over Allegedly Unlawful Student Loan Debt Collection Practices

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On September 14, 2020, New York Attorney General Letitia James announced that she secured protections for thousands of student borrowers who defaulted on student loans and who were allegedly subject to misleading and unlawful...more

Cooley LLP

Blog: Student and Borrower Relief Under the CARES Act

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In addition to providing institutions relief from certain federal student aid requirements, as discussed in our previous post, the CARES Act relaxes requirements for certain students and borrowers. This post highlights those...more

Ballard Spahr LLP

State AGs seek information from ED on discharge of federal loans to former ITT students

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A group of 22 state Attorneys General have sent a letter to the Department of Education seeking information “to determine whether the [ED] is providing relief to thousands of former ITT Tech students as required by federal...more

Alston & Bird

Massachusetts Poised to Regulate Student Loan Servicers

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A&B ABstract: Amid growing concerns of a student loan crisis, proposed Massachusetts H. 3977 is worth watching....more

Hudson Cook, LLP

Regulation of Student Loan Servicers - Recent Enactments and a Look Ahead at Pending Legislation

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The May 2019 issue of Insights provided high-level background information about the recent trend of state legislation targeting student loan servicers. In the June 2019 issue of Insights, we took a deeper dive into New York's...more

Alston & Bird

Will Maine Begin to Regulate Passive, Secondary Market Investors in Student Loan Debt?

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A&B Abstract:  Maine’s New Student Loan Bill of Rights requires the licensing of any person acting as “directly or indirectly” as a student loan servicer.  ...more

Ballard Spahr LLP

House Financial Services Committee passes more credit reporting bills

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Three more bills dealing with credit reporting were passed on Tuesday by the House Financial Services Committee.  Like the four bills passed by the Committee last week, none of the bills passed yesterday received any...more

Hinshaw & Culbertson LLP

Illinois Student Loan Bill of Rights Becomes Law

On November 8, 2017, the Illinois House of Representatives voted 98-16 to override Governor Bruce Rauner's veto of the Illinois Student Loan Bill of Rights. The IL student loan bill provides for the licensing of student loan...more

Hinshaw & Culbertson LLP

Student Loan Servicing Regulations: 50 State Guide on Laws and Legislation – First Edition

Preface - The following summary of current state law and pending legislation regarding student loan servicing as of June 1, 2017, is designed to serve as a tool to assist in understanding the breadth of state regulations...more

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