Scott Applauds Biden Administration for Strengthening Accountability for Student Loan Servicers
WASHINGTON, DC – Today, Education and Labor Committee Chairman Robert C. “Bobby” Scott (VA-03) issued the following statement after the Department of Education released a new legal interpretation that enhances oversight and accountability for student loan servicers. In 2019, Chairman Scott sent a letter to then-Education Secretary Betsy DeVos regarding the Department’s efforts to shield student loan servicing companies from state law enforcement.
“The Biden-Harris Administration has taken a critical step to improve oversight of student loan servicers and ensure that all borrowers are protected from unfair and deceptive practices. The Trump-era policy of shielding student loan servicers from state-level oversight and accountability was a disservice to student borrowers and taxpayers who are often forced to foot the bill when borrowers are unable to pay their loans. It prevented state Attorneys General and consumer protection agencies from taking urgent action to pursue allegations of mismanagement and fraud, stripping borrowers of a key line of defense.
“Today’s legal interpretation from the Biden Administration will restore states’ ability to protect student loan borrowers and their families from misleading practices and ensure that all borrowers are able to access the information they need to manage their student loans. I applaud the Department for reversing the previous administration’s policy and providing student borrowers and their families the consumer protections they deserve.”