Why Would the Government Stop States From Helping Student Borrowers?
Massachusetts, Maine, and others want to police companies that collect loan payments. The Department of Education says they can't.
Every year, the Department of Education issues billions of dollars in student loans. And every year, outside companies are contracted to collect on those loans. The loans themselves are the subject of fierce debate among the higher-education crowd—but how they are collected tends to draw the most ire.
Borrowers have that these outside companies—loan servicers, they’re called—have lost their paperwork, made it harder than it should be to to zero out their balances after becoming totally disabled, and incorrectly calculated their income when registering for
