September 16, 2019 / 8:53 PM / a month ago

DOE can be sued by student loan servicer in Connecticut preemption case - judge

A federal judge has ruled the U.S. Education Department can be bound to his eventual ruling on whether federal law prevents student loan servicer Pennsylvania Higher Education Assistance Agency from turning over its records to Connecticut’s banking regulator.

U.S. District Judge Michael Shea in Hartford on Friday ruled the department could be sued as a required party to PHEAA’s case against the Connecticut Department of Banking to avoid the loan servicer being subject to inconsistent obligations.

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