Elizabeth Warren says states need more power to rein in student-loan companies: ‘They should face consequences’
Business Insider says last month, the Education Department reversed a Trump-era policy that prevented states from regulating student-loan companies. Massachusetts Sen. Elizabeth Warren lauded the reversal, but she wants states to be able to do even more to protect borrowers from student-loan abuses.
“The world has changed for student-loan-debt servicers,” Warren told Insider. “They can’t sign a contract, do a lousy job, cost borrowers tons of money, and still get their contracts renewed.”
Last week, Warren and Ohio Sen. Sherrod Brown led six of their Democratic colleagues in urging Cardona in a letter to go beyond the reversal of President Donald Trump’s policy and provide additional protections to borrowers, such as requiring loan companies to be licensed or have in place complaint processing protocols.
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