Los Angeles Times March 6 "California braces for battle with Trump administration over student loans" Author: David Lazarus The event of the student loan laws being addressed by a memo from the Education Department was directed towards California. This memo was addressing how federal loan services should be the ones in charge of student loans, according to the Education Department. California however, has certain laws that restrict them from ripping off their clients. This memo was from the Education Department and was obviously directed towards the laws the the state of California specifically has against what the memo was referring to. This event occurred recently and California refuses to do anything about it as they disagree with the memo and want to stick with their current way of dealing with loans. The memo that was sent out sated that California and other states should back off their student loan laws and allow the student loan collectors to be more involved in the process. However, the laws that California has is to prevent student loan collectors from taking more money from the person. Larger student loan collecting companies like Navient are being sued because they take more money than they should. The laws that California has against this only ask that they disclose information about taking extra money to the client instead of secretly taking more than they should, nothing more. They are not prevent them from doing their jobs, only protecting the client from losing money. Currently, California is considering every legal option they have in order to respond. In my opinion, I think that California is making the correct decision in protecting their laws and their people by not allowing big companies to take more money than they should. The purpose for these laws are to protect the clients from being charged more than should be allowed and to protect them from being taken advantage of by bigger companies. As said in the Los Angeles Times article on "California braces for battle with Trump administration over student loans" by David Lazarus, "If protecting consumers from financial abuse was a distinctly federal interest, the Trump administration wouldn't be systematically crippling the federal Consumer Financial Protection Bureau, leaving it up to the states to look after people's financial well-being." I will be commenting on Chloe Reeves and Nia Asbill's blogs. Source: Los Angeles Times Author: David Lazarus March 6, 3:00 AM
2 Comments
Nia Asbill
3/8/2018 10:06:19 am
This seems like a complicated and expensive issue that California is facing. Do you believe that this issue will just escalate, or will it be resolved? Would these laws affect people outside of those with debt and large companies?
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Sorel
4/10/2018 01:00:55 pm
This is obviously a huge problem California is facing and that can cost us lots of money. how do you think the best way to resolve thins problem with out it getting any worse than it is?
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