Sen. Warren seeks review of military student loan law
BOSTON (AP) — U.S. Sen. Elizabeth Warren is seeking a fresh examination of a student loan law aimed at providing consumer protections to active members of the military.
Warren joined fellow Democratic senators Patty Murray of Washington and Richard Blumenthal of Connecticut in asking the Department of Education’s inspector general to look at the department’s previous review of compliance with the law.
Education Department officials found student loan borrowers were incorrectly denied the mandated interest rate cap of 6 percent in “less than 1 percent of cases.” The department took no action against the loan servicers.
Warren said the review was faulty and based on “a tiny fraction of the relevant cases.”
An Education Department spokeswoman said officials welcome any review and have improved their processes so service members no longer have to bear the burden of proving their status to receive reduced interest rates.