New York political leaders have announced that the FY 2020 Enacted Budget includes legislation that will provide sweeping new protections for student loan borrowers. The protections require companies servicing student loans held by New Yorkers to obtain a state license and meet standards consistent with the laws and regulations governing other significant lending products, such as mortgages.
This legislation will ensure that no student loan servicer can mislead a borrower or
engage in any predatory act or practice, misapply payments, provide credit reporting agencies with inaccurate information or engage in other practices that may harm the borrower.
– Michael Baldwin