Department of Education Acting to Remove State Borrower Protections

[Washington]-According to recent news reports, the Department of Education is preparing to issue memos that will claim that any state-level protections for federal student loan borrowers are preempted by federal law. This would have the effect of nullifying several states’ consumer protections designed to ensure that borrowers in their state are treated fairly by student loan servicers and debt collectors. Illinois just passed the Student Loan Servicing Rights Act last year, and this particular law would be one of the laws struck down should the Department’s position be validated by a court of law.