MAINT STREET: 2015 Student Loan Outlook: Regulators May Regulate, But the Lenders Will Still Lend
Career College Central Summary:
As it drew to a close, student loan observers were saying 2014 would go down as the year of regulation. The White House, the Senate HELP Committee, the Consumer Financial Protection Bureau (CFPB) and activist state attorneys general went after loan servicers and for-profit colleges that abused borrowers, the pawns that this game couldn’t be played without.
Will this trend continue in 2015?
With Republicans in control, Congress is unlikely to pass a flood of laws that favor borrowers. Senator Lamar Alexander (R-Tenn.), chair of the Senate HELP committee, which is at the center of legislation that affects students, is generally a proponent of reduced regulation. His plan to simplify the Free Application for Student Aid (FAFSA) might pass as a position that favors students, but it will likely be one of the few.
“It’s not a secret that that Congress is unlikely to focus on a proactive, borrower-friendly agenda,” said Deanne Loonin, a Boston-based attorney at the National Consumer Law Center (NCLC). “The Republican leadership so far has talked mainly about relief for the higher education sector.”
That relief may come in the form of reduced regulation.
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