Student Loan Industry Clashes With 25 States Over Probes
- Lenders seek guidance saying federal law preempts state probes
- For-profit schools have paid steep settlements to U.S. states
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The U.S. student loan industry is trying to dodge state investigations into allegedly abusive practices by claiming they’re preempted by federal law, a bipartisan group of attorneys general claimed.
At least two national industry groups asked the Department of Education this year to issue formal guidance barring probes by states, arguing they duplicate federal efforts and needlessly expand regulations, according to copies of the letters obtained by Bloomberg News.