Cuomo proposes new regulations for student loan servicers, for-profit colleges – Syracuse.com
New York Gov. Andrew Cuomo in his annual address and budget proposal outlined new requirements for student loan servicers and for-profit colleges.
Cuomo detailed his priorities for the coming year, noting in the 2020 budget book that New York state would step in to protect student loan borrowers in New York state in the “absence of federal leadership.” Cuomo made several digs at the Trump administration, noting in the “Higher Education” portion of his proposal that Trump’s education department has or is planning to roll back several regulations.
The Cuomo administration is proposing new state oversight to monitor for-profit colleges and companies that service student loans.
According to the budget book, 28 million borrowers live in New York and are serviced by 30 student loan companies. The state does not currently regulate or license those companies. Cuomo’s proposal would create licensing standards and rules for these companies. The companies would be banned from engaging in predatory lending acts, misleading borrowers and other harmful practices.