Servicers and the Expanding Student Loan Law Landscape

Law360
7 minute read | April.04.2023

Student debt has long been an area of national concern, predating the Biden administration's efforts to reduce it, and the matter's subsequent landing in the U.S. Supreme Court.

As a result of the ensuing scrutiny, student loan servicers are now subject to ever-increasing regulatory and licensing requirements as states respond to pressure from consumer groups with legislation. This has included many states proposing and enacting student loan servicing bills of rights.

More recently, the California Department of Financial Protection and Innovation modified proposed regulations under its student loan servicing statute, which would amend so-called education financing products to include private student loans that are not traditional loans, and expand borrower protections.