October 19, 2018 / 9:49 PM / a year ago

Student loan servicers say D.C. licensing law invalid

A local law in Washington D.C. imposing new rules on student loan servicers is invalid because it interferes with the way federal government contractors do their jobs, a national trade group for the servicers told a federal court on Thursday.

In a brief filed in District of Columbia federal court, the Student Loan Servicing Alliance (SLSA) said the law violates the U.S. Constitution’s Supremacy Clause, which bars states from interfering with powers vested in the federal government.

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