Cordray scraps Trump-era policy hindering state investigations of student loan companies – Politico
Richard Cordray, the new federal student aid chief, announced the change on Friday and vowed to work more collaboratively with state attorneys general and other regulators.
The Biden administration is rescinding a Trump-era policy that blocked state and federal regulators from accessing records that they need to oversee and investigate some of the nation’s largest student loan companies.
Richard Cordray, the new federal student aid chief, announced the change on Friday and vowed to work more collaboratively with state attorneys general and other regulators to police the student loan servicers and debt collectors hired by the Education Department.
The policy reversed by Cordray was at the center of years-long disputes between former Education Secretary Betsy DeVos and state attorneys general. The Trump administration vigorously fought efforts by states to investigate student loan servicing companies and bring lawsuits accusing them of cheating or misleading borrowers.
The Education Department in 2017 ordered loan companies working for the agency to avoid responding directly to information requests from third parties, such as state attorneys general. It required those requests for information to instead be sent to the department, which frequently rejected them.