Legal Seminar, Denver, CO
Fintech Charter
True Lender Doctrine
Madden v. Midland
Student Loan Servicing
For Discussion Purposes Only
Student Loan Servicing: Background • Beginning in 2015, several states began passing laws requiring student loan servicers to obtain licenses to service education loans to borrowers residing in their states.
• In 2016, the Department of Education (ED) released a memo indicating that federal law does not preempt state regulation and licensing of student loan servicers.
• In 2017, ED rescinded this memo and received requests by trade associations to issue an interpretation declaring state servicing laws preempted.
• In March 2018, ED issued an Interpretive Notice asserting its view that state licensing and regulation of “federal student loan servicers” is preempted. – A “federal student loan servicer” is an entity servicing student loans under the William D. Ford Direct Loan Program and the Federal Family Education Loan (FFEL) Program.
For Discussion Purposes Only
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