North Carolina Department of Justice
North Carolina Department of Justice
North Carolina Department of Justice
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Attorney General Josh Stein Urges the Federal Government to Work with States to Protect Students

Release date: 4/5/2019

(RALEIGH) Attorney General Josh Stein today made a second request to the U.S. Department of Education asking it to reinstate its long-standing practice of sharing student loan information with state law enforcement agencies, a practice that helps states protect student loan borrowers from predatory lending practices and secure relief for victims of fraud. In 2018, the Department abruptly reversed the practice and limited the information available to states.
 
“As Attorney General, it’s my responsibility to protect students from fraud so they can safely invest in their future,” said Attorney General Stein. “The information that the Department abruptly stopped sharing – without explanation – is vital in helping us curb a range of unfair or unlawful practices that victimize students trying to repay their student loans. That’s why I’m again asking the Department of Education to immediately reconsider this policy change.”
 
Today’s letter to U.S. Education Secretary Betsy DeVos renews the request made in a letter first sent by Attorney General Stein and 19 other attorneys general in July 2018. In their letter, the attorneys general note several reports, including one by the Department’s own Inspector General, that identify concerns with the Department’s oversight of student loan servicers, private companies that contract with the Department to service the student loans the Department owns.
 
“The State Attorneys General are in a unique position to ensure that the servicers are conducting their businesses in compliance with consumer protection law and have been active in enforcing state consumer protection laws against servicers,” the attorneys general write. “This inexplicable move by the Department impedes the efforts of law enforcement agencies to protect the students the Department exists to serve.”
 
Attorney General Stein is joined in sending today’s letter by the Attorneys General of Colorado, New Jersey, Washington, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Iowa, Maryland, Massachusetts,
Michigan, Minnesota, Nevada, New York, Oregon, Pennsylvania, Rhode Island, and Virginia.
 
A copy of the letter can be found here.
 
More on Attorney General Stein’s work to protect students:

 
Contact:
Laura Brewer (919) 716-6484
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