New State Laws Target Student Loan Servicers

A growing number of states are passing laws that regulate federal student loan servicers.

Update: On July 15, 2019, the governor of Rhode Island signed a Student Loan Bill of Rights into state law. The legislation sets standards for student loan servicing, as well as prohibits predatory servicing activities and provides best practices for servicers in order to protect consumers’ rights.

As the Trump administration rolls back federal regulations designed to protect people who have federal student loans, more and more states are enacting laws to protect borrowers and reduce abuses by student loan servicing companies. California, Colorado, Connecticut, Illinois, Maryland, New Jersey, New York, Washington, and the District of Columbia, for example, have all passed legislation regulating student loan companies that operate in these states. Other states, like Maine, Massachusetts, Minnesota, Nevada, Oregon, and Rhode Island are also considering adding laws covering student loan servicing activities.

To find out more about laws that regulate student loan servicers in your state (if any), and to learn more about your rights as a student loan borrower, talk to a debt settlement lawyer, consumer protection lawyer, or a student loan lawyer.

Effective date: May 23, 2019