New York Gov. Cuomo proposes tougher rules on for-profits, student loan servicers – Education Dive
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Dive Brief:
- In a budget proposal for the 2020 fiscal year, New York Gov. Andrew Cuomo has proposed laws to crack down on student loan servicers and for-profit colleges.
- The plan took aim at the U.S. Education Department’s efforts to deregulate for-profits and proposes more state oversight of the sector. Under the new law, New York’s for-profit colleges would have to spend at least 50% of their revenue on instruction, take no more than 80% of revenue from public sources and report executive salaries. It would also ban college executives from serving on accreditation boards responsible for their school’s oversight.
- Cuomo’s plan also would require student loan servicers to obtain a state license and meet certain standards in an effort to stem industry misconduct that his office says has been exacerbated by the Trump administration’s deregulatory agenda. The statute, according to the governor’s office, would “ensure that no student loan servicers can mislead a borrower or engage in any predatory act or practice.”
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