Mar 22, 2018 e-newsletter

Kendrick Stands Up for Missouri’s Right to Protect Student Loan Borrowers From Predatory Loan Servicing

This week, I signed on to a letter with 20 other state legislators from around the country urging Education Secretary, Betsy DeVos, to rescind her March 12 memo and subsequent ruling that pre-empts state laws enacted to protect student borrowers from predatory lending practices.

Student debt is a critical issue facing all Americans…

States, like Missouri, are in a unique position to be able to protect their citizens from predatory loan servicing practices. There are many strong loan servicers in the industry, but recent changes to federal student loans under the DeVos and Trump Administration leave the door open for more predatory servicers to prey on borrowers. Lacking diligent federal oversight, it is critical to allow states to provide oversight of this industry and further protect borrowers.


Dear Secretary DeVos:

 

As state legislators dedicated to protecting student borrowers, we are writing to ask that you withdraw the March 12 memo pre-empting state laws meant to protect student loan borrowers.  We request that you instead support a state’s ability to regulate and license student loan servicers operating within its jurisdiction.

 

On Monday, March 12, the U.S. Department of Education released an interpretive memo entitled “Federal Pre-emption and State Regulation of the Department of Education’s Federal Student Loan Program and Federal Student Loan Servicers.” The memo purports to pre-empt not only state licensing regimes for student loan servicers, but that even the traditional police powers of state’s Attorneys General are pre-empted when that enforcement is related to federal student loans…

 

Read Rep. Kendrick’s full letter to Sec. DeVos…


Read the ruling issued by
Department of Education
Secretary Betsy DeVos

to which 21 state legislators responded


Those signing the letter in opposition to the DOE ruling included:

Mark Stone, California State Assembly
Eloise Vitelli, Maine State Senate
Lorena Gonzalez Fletcher, California State Assembly
Eric Lesser, Massachusetts State Senate
Daniel Kagan, Colorado State Senate
Erin Murphy, Minnesota House of Representatives
David Grosso, District of Columbia Council
Ilhan Omar, Minnesota House of Representatives
Daniel Biss, Illinois State Senate
Kip Kendrick, Missouri House of Representives
Sandra Cunningham, New Jersey State Senate
Monica Jurado Stonier, Washington House of Representatives
Patricia Roybal Caballero, New Mexico House of Representatives
Kevin Ranker, Washington State Senate
Kenneth P. Zebrowski, New York State Assembly
Christine Rolfes, Washington State Senate
Aaron Regunberg, Rhode Island House of Representatives
Lisa Wellman, Washington State Senate
Marko Liias, Washington State Senate
Janet Howell, Virginia State Senate
Guy Palumbo, Washington State Senate