Assemblyman Ken Zebrowski (D-New City) joined legislators from 14 different states across the country in urging the U.S. Department of Education (DOE) to withdraw their recent Notice of Interpretation regarding student loan borrowers. The memo, which was released on March 12th 2018, pre-empts state laws meant to protect student loan borrowers. It limits individual states ability to regulate and license student loan services within their own jurisdiction.
State legislators from California, Colorado, Illinois, Maine, Massachusetts, Minnesota, Missouri, New Jersey, New Mexico, New York, Rhode Island, Washington, Virginia, and Washington D.C. joined in requesting that the memo be withdrawn in a letter to DOE.
As state legislators, it is our job to ensure that our residents are protected. We are best positioned to respond to the needs of our constituents; they are our neighbors, people we see every day, said Assemblyman Zebrowski.
I have authored legislation that would require student loan servicers operating in NYS to be licensed and registered with the State. This proposal has now been included in the Assemblys one-house budget that recently passed, and the Senate must follow suit to make this a reality. For the federal government to hinder states efforts to protect their own residents is irresponsible and counterproductive. New York State has the right to use everything in our power to protect student borrowers and not be limited to what the federal government deems sufficient, concluded Zebrowski.
Please click here to view the letter.