Westlaw News

Court invalidates part of D.C. student loan servicer law

Washington, D.C. cannot impose its own licensing requirements on servicers of federally owned student loans, a federal judge has ruled, handing a win to a national student loan servicers trade group that opposed the district’s regulations.

In a decision on Wednesday, U.S. District Judge Paul Friedman in Washington, D.C. said the regulations are preempted by the U.S. Higher Education Act, which gives the federal government the right to contract with servicers for federal student loans. By imposing additional licensing requirements, the district’s regulations would interfere with that right, Friedman said.

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