From Inside Higher Ed: “ISA lenders and consumer advocates alike have been calling for clarification on the legal rules they must follow since the Education Department clarified in March that ISAs are considered private student loans. The announcement from the department subjected ISAs to the same set of consumer protection laws as private student loans. However, since ISAs, which are based on a student’s income, are different from traditional private student loans, ISA providers have been confused on how to interpret these laws. The ISA Student Protection Act would essentially create a separate regulatory system tailored to ISAs. … The bill is supported by companies that oversee ISA programs, but critics of ISA programs are skeptical that the bill will prevent bad actors from rising in the industry.”
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