Student Loan Lawsuit: Servicer Sues Connecticut Over Tough Consumer Protection Laws

In the past several months, news has cycled from one student loan lawsuit to another. State attorneys general have filed suits against servicers, and there are even individual and class action lawsuits from consumers.

This past week, the Pennsylvania Higher Education Assistance Agency (PHEAA) filed a lawsuit against the Connecticut Banking Department. As part of this student loan lawsuit, PHEAA wants the court to declare that federal rules regulating student loan servicers supersede the more stringent regulations Connecticut is trying to enforce.