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Foxx on Student Loan Servicing Preemption

Today, Republican Leader of the Education and Labor Committee Virginia Foxx (R-NC) denounced the Department of Education's decision to allow states to interfere in the administration of the federal student loan program:

“Secretary Cardona’s decision to shirk responsibility will have disastrous consequences for student loan borrowers. Federal student loan servicers work for the federal government and their assigned borrowers. Forcing them to serve dozens of state governments that contradict federal rules will create borrower confusion and worsen the borrowers’ repayment experience. The Department’s bureaucratic incompetence, combined with inherent design flaws in the Higher Education Act, are the reasons why borrowers get left behind. I urge Secretary Cardona to stop outsourcing his responsibilities to unfit Democrat activists. Congress must reform the HEA to address the root causes of the student loan repayment crisis. Secretary Cardona’s action today will be remembered as a spectacular failure.”

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