student loans

Biden Admin Revokes Trump Rule on Student Loan Oversight, Paves Way for Investigations

The Trump administration's policy was posted in the Federal Register in March 2018

Education Secretary Miguel Cardona speaks to press after a visit to P.S. 5 Port Morris, a Bronx elementary school, Tuesday, Aug. 17, 2021 in New York.
AP Photo/Brittainy Newman

The Biden administration has revoked a Trump-era rule that consumer advocates argued allowed the Education Department to subvert state law enforcement probes of student loan servicers — one of a series of recent overhauls that could pave the way for more robust investigations.

In a new letter obtained by NBC News, a group of Democratic senators are expressing support for Education Secretary Miguel Cardona for the latest reversal that tightens oversight of the student loan servicing industry, but they also believe the department must go further to ensure states have the full backing of the federal government to hold loan companies accountable.

The Trump administration's policy, posted in the Federal Register in March 2018, "interfered with state regulators exercising their authority to protect consumers in their states," the eight lawmakers, led by Sen. Elizabeth Warren, D-Mass., and Sen. Sherrod Brown, D-Ohio, wrote to Cardona.

For more on this story, go to NBC News.

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