Biden Administration Rolls Back DeVos Rule Limiting State Authority Over Student Loan Companies

The Education Department on Monday scrapped a Trump-era policy of shielding companies that manage its $1.5 trillion student loan portfolio from state regulation. Instead, the department is encouraging states to work with the federal agency to protect borrowers and hold loan servicers accountable. The agency issued guidance clarifying that while federal law does preempt state regulation in some instances, states can go after servicers for deceptive practices, payment errors and other consumer protection matters.