Updated: July 2018

Nelson v. Great Lakes Educational Loan Services

In response to the wave of new state student loan servicing laws and enforcement activity, the U.S. Department of Education has published an interpretation emphasizing that the Higher Education Act (HEA) preempts state regulation of federal student loan servicers. Contrary to the district court’s opinion, the U.S. Department of Education regulations on servicer behavior are far from robust, and historically, its enforcement of borrower protections has been woefully insufficient.

Therefore, Consumer Action joined 14 consumer, student and civil rights organizations in asking the Court to conclude that the Plaintiff's consumer protection claims under Illinois state law are not preempted by federal law and reverse the district court’s dismissal of the Plaintiff’s claims.

Click here to read the full brief.