Christian Student Loans

Biden administration reverses Trump-era policies that hampered investigations of student loan companies


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The Biden administration announced on Friday that it was reversing Trump-era policy and would expand the ability of state and federal regulators to investigate large student loan companies.

Richard CordrayRichard Adams Cordray Dennis Kucinich Joins Race to Become Mayor of Cleveland Biden Administration Reverses Trump-Era Policy That Hindered Investigations Of Student Loan Companies On The Money: IRS To Begin Monthly Credit Payments tax for children July 15 | A quarter of Americans suffered financial blows in 2020: Fed MORE, the federal head of student aid in the Biden administration, announced the new policy, saying he plans to work with state attorneys general and other officials to monitor and obtain information from loan companies to students and debt collectors hired by the Department of Education.

This decision essentially reverses a policy implemented under the former Secretary of Education Betsy DeVosBetsy DeVosErik Prince involved in promoting experimental COVID-19 vaccine: Report that the Biden administration is reversing Trump-era policies that hampered investigations into student loan companies that DeVos ordered to testify in as part of a lawsuit for the cancellation of the PLUS student loan who pressured loan companies affiliated with the department to avoid responding to requests for information from outside parties, including state attorneys general.

“Instead of finding reasons to deny these requests, we should be spending our time working in partnership with state agencies to effectively oversee our loan officers and debt collectors. Effective today, we’re deleting the Bradfield memo and replacing it with a new memo with a different approach. Now, when we receive these requests, our staff will be ready to work with our state partners to promptly review them and approve them whenever possible, ”Cordray said.

A memo released by Cordray describes the new policy and calls for a “streamlined, fast-track process” for officials to request information in investigations into student loan companies.

“States and regulators need information when they believe a loan service company might be breaking a law or regulation,” Cordray said. “To be sure, they need to look at companies’ policies and procedures, their manuals, customer complaints and anything that shows how the company is operating.”

Cordray’s announcement comes as student loan services face a slew of lawsuits over allegations they violated state consumer protection laws.

More recently, Colorado Attorney General Phil Weiser (D) sued the Pennsylvania Higher Education Assistance Agency in an attempt to provide records to regulators seeking to investigate the company’s management of federal student loans since the beginning of the coronavirus pandemic.

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