The Trump administration has told States to stop regulating companies that service Federal student loans; that’s the Federal government’s job. The States have demurred.
The whole thing could—and should—be made moot by the Federal government getting out of the student loan business altogether. The Feds have no business here; it’s a private enterprise arena, and the States should be free to regulate, or not, to their hearts’ contents on intrastate student lending. The Feds’ only role here should be to regulate Commerce…among the several States and not to compete in that commerce.