Massachusetts defies Trump administration with crackdown on student loan debt

At least one state is moving forward with its plan to crack down on student loan companies, despite pressure from the federal government and the firms themselves to back off.

The Massachusetts state senate passed a bill Wednesday that would create an ombudsman to monitor student loan companies and handle borrower complaints. The bill would also require student loan servicers operating in the state to obtain a license. Though the bill still needs to be passed by the state house and signed by the governor before becoming law, its clearing the Massachusetts Senate marks the first major step taken by a state toward regulating student loan servicers since Secretary of Education Betsy DeVos argued publicly that states have no right to do so.