• About Us
    • Join CAPPS Email List
    • What is Private Postsecondary Education
    • About ICEPAC
  • News
    • Legislation / Advocacy
  • Events
    • Allied Member Vendor Showcase ~ Presenter Contact Information
    • CAPPS Legislative Policy Conference April 22-23, 2021
    • 2021 CAPPS Sponsorship Opportunities
    • 37th Annual Conference
    • Educational Advisors ~ Event Calendar
  • Resources
    • Classifieds
    • Professional Online Training Center
    • State and Federal Resources
    • Accreditors
    • Boards
    • Associations
  • CAPPS Member Portal & Archives
    • CAPPS Membership Directory
    • Conference Archives
    • Member Only Webinar
    • Webinar Archives
    • Workshop Archives
    • CAPPS Member Portal
      • CAPPS Legislative Watch
      • BPPE Sunset Report
    • Featured Members
    • Select Allied or School Benefits – Why be a CAPPS Member?
      • School Membership Application & Renewal Form
      • Allied Membership Application & Renewal Form
  • Awards
    • CAPPS Memorial Scholarships
    • Excellence in Community Service Awards
    • CAPPS Hall of Fame STAR Awards
    • Norma Ford Financial Aid Professional of the Year
    • School of the Year
    • Allied Member of the Year
California Association of Private Postsecondary Schools                        
916-447-5500
Email
        Login
CAPPS
  • About Us
    • Join CAPPS Email List
    • What is Private Postsecondary Education
    • About ICEPAC
  • News
    • Legislation / Advocacy
  • Events
    • Allied Member Vendor Showcase ~ Presenter Contact Information
    • CAPPS Legislative Policy Conference April 22-23, 2021
    • 2021 CAPPS Sponsorship Opportunities
    • 37th Annual Conference
    • Educational Advisors ~ Event Calendar
  • Resources
    • Classifieds
    • Professional Online Training Center
    • State and Federal Resources
    • Accreditors
    • Boards
    • Associations
  • CAPPS Member Portal & Archives
    • CAPPS Membership Directory
    • Conference Archives
    • Member Only Webinar
    • Webinar Archives
    • Workshop Archives
    • CAPPS Member Portal
      • CAPPS Legislative Watch
      • BPPE Sunset Report
    • Featured Members
    • Select Allied or School Benefits – Why be a CAPPS Member?
      • School Membership Application & Renewal Form
      • Allied Membership Application & Renewal Form
  • Awards
    • CAPPS Memorial Scholarships
    • Excellence in Community Service Awards
    • CAPPS Hall of Fame STAR Awards
    • Norma Ford Financial Aid Professional of the Year
    • School of the Year
    • Allied Member of the Year

News

  • Home
  • News
  • Student Loan Servicers’ Fight over Federal Preemption of State Regulation of May End Up in the Supreme Court

Student Loan Servicers’ Fight over Federal Preemption of State Regulation of May End Up in the Supreme Court

  • Posted by CAPPS
  • Date

JDSupra

In courts across the country, servicers are facing off against states and borrowers over the extent to which federal laws preempt state regulation of federal student loan servicers. Numerous states have stepped up their enforcement activity against student loan servicers and begun enacting new laws aimed at regulating student loan servicing, partially in response to what the states view as a slowdown in federal oversight. Some servicers of federal student loans, pushing back against the state regulations, have argued that the state laws impermissibly conflict with the federal student lending laws.

The dispute largely centers on the Higher Education Act (HEA), which servicers argue preempts all state regulation of federal student loan servicers. Because the HEA and its implementing regulations govern the procedures and standards that servicers must follow when servicing federal student loans, servicers have argued that the HEA preempts all state laws that potentially conflict with the HEA, such as state disclosure and licensing laws. States and borrowers disagree that the HEA completely preempts the state regulation, instead contending that the HEA was never intended to completely preempt state laws and leaves room for states to regulate many aspects of student loan servicing.

The Department of Education, which regulates the federal student loan industry, also weighed in on the debate. The department published an interpretation that sides with the servicers, concluding that state regulation of federal loan servicers is preempted by the HEA. Courts are to give deference to the department’s interpretation, but it is not binding on their decisions. Accordingly, some courts, finding the department’s interpretation persuasive, have held that preemption applies, while other courts have rejected preemption despite the department’s conclusion.

Below are a few of the cases currently progressing through the court system that raise this preemption issue… (continue reading)

  • Share:
author avatar
CAPPS

Previous post

Which Colleges Failed the Latest Financial Responsibility Test?

Next post

Feds Recommend Colleges Clarify Financial Aid Offers

You may also like

Forbes
For-Profit Higher Ed’s Renaissance: The Case Of Coursera
21 April, 2021
Inside Higher Ed
McCann to Office of the Under Secretary
20 April, 2021
POLITICO
How Biden’s infrastructure plan may fracture the nation’s colleges
20 April, 2021

Search

Memorial Scholarship Information
Donate to ICEPAC
Become an Allied Member
Become a School Member
CAPPS Events

ABOUT US

  • What is Private Postsecondary Education
  • CAPPS Memorial Scholarships
  • Upcoming Conferences

MAILING ADDRESS:
California Association of
Private Postsecondary Schools
2520 Venture Oaks, Suite 170
Sacramento, CA  95833
info@cappsonline.org
www.cappsonline.org    

CappsOnlineMorpho Web Design.

2020 All Rights Reserved CappsOnline.org