Trade group sues District of Columbia to prevent student loan borrower confusion

Lawsuit challenges local law imposing regulations preempted by federal law

March 20, 2018, the Student Loan Servicing Alliance (SLSA) filed a civil action in the United States District Court for the District of Columbia challenging District of Columbia Law 21-214 and emergency rules to impose additional requirements and fees on federal student loan servicers beyond what is prescribed by federal law. The lawsuit was filed on the grounds that federal law preempts D.C. Law 21-214 and the emergency rules.