The situation: Student loan debt in the United States stands at an all-time high of approximately $1.5 trillion spread across more than 44 million borrowers. According to some observers, Massachusetts ranks 12th among states with the highest student debt burden, with average debt exceeding $30,000 per borrower. Against this backdrop, Massachusetts and other states have aspired to a larger regulatory and enforcement role with respect to student loan servicers, the industry participants with the closest relationship to borrowers.
The trouble: Two current developments in Massachusetts have significant implications for student loan servicers: (i) state lawmakers are considering enacting a “student loan bill of rights” that would establish state-level regulations specifically aimed at servicers; and (ii) Massachusetts Attorney General Maura Healey has increased enforcement activities against servicers.
Lookin Ahead: Student loan servicers should begin preparing for the possibility of new state-level regulations and should adopt appropriate contingency plans. Servicers should also expect continued scrutiny from Attorney General Healey even if new regulations never materialize.
New Education loan Expenses away from Liberties (“SL Bill from Liberties”) try brought about Massachusetts legislature in 2017 given that Senate Bill No. 129. A revised brand of the balance enacted unanimously about Massachusetts Senate within the 2018 but did not show up to have a vote from the Massachusetts Household off Agents. New sponsors of your own SL Costs from Legal rights refiled a house adaptation (due to the fact amended, H. 3977) and you may Senate version (S. 160) to the 2019 tutorial. The newest Combined Panel to the User Coverage and you will Elite Licensure kept good hearing toward Senate version inside , while the Shared Panel on Financial Services stored a hearing to your our house variation inside .