b'California Passes Student Loan Borrower cancellation, the probability of cancellation remains Bill of Rights low without cooperation and legislative action by In September, California Governor Gavin NewsomCongress. However, the industry should expect more signed into law the California Student Loan Borrowermodest action from the Biden administration through Bill of Rights. Though in recent years other statesexecutive order, including measures such as additional have passed laws designed to regulate student loanand lengthier forbearance programs and automatically servicers, the California law is the first state law toenrolling all federal student loan borrowers in comprehensively regulate the student loan industry,Income-Based Repayment programs. including private student loan servicers, depositoryOn the federal level, industry participants should institutions, and servicers of federal student loans. Itpay careful attention to the CFPBs regulatory and is likely that certain components of the law will thusenforcement agenda. The change in direction at the be challenged on preemption grounds. Perhaps theCFPB is likely to be felt acutely by the student loan biggest impact of the law, however, is that it creates aservicing industry, particularly given Director-nominee private right of action, including in certain cases trebleRohit Chopras prior experience as the CFPB student damages, punitive damages, and legal fees, for failureloan ombudsperson. The industry should expect that, to comply with either the substantive provisions of theif Mr. Chopra is confirmed, the CFPB will take broader, Borrower Bill of Rights or any federal law that applies tomore aggressive enforcement action against the entire student loan servicers. student loan ecosystem: lenders, servicers, service-Virginia Enacts Student Loan Servicer Licensure Law providers, investors, and colleges and universities. In April, Virginia enacted a law requiring student loanStates are likely to continue to take an active role in servicers to be licensed by the State Corporationpolicing the student lending industry, even with more Commission. In addition to licensure, the law createsaggressive federal enforcement on the horizon. Student a private right of action, requires that licensed entitiesloan servicers who operate in California are likely to refrain from a laundry list of prohibited activities, andexperience increased scrutiny from the DFPI as a result mandates a lengthy list of affirmative acts requiredof this years passage of the Student Loan Borrower Bill of student loan servicers, which govern borrowerof Rights. Though California is not the first state to pass communications, the posting of payments, creditsuch a law, the California law is likely to spur legislative reporting, and other activities.action in other states. The student lending industry should also prepare for an increase in private litigation Looking Ahead to 2021 as a growing number of student lending laws, including the California one, provide a private right of action Federal and state governments are likely to continueto student loan borrowers for violations of the laws to prioritize seeking redress and additional protectionssubstantive requirements. for student loan borrowers, particularly until the COVID-19 crisis has abated. President Biden hasWhat to Watchexpressed his commitment to student debt forgiveness and more forgiving repayment programs, includingPassage of a growing number of state-level student urging $10,000 in federal student loan forgivenessloan borrower Bill of Rights laws. per borrower and $10,000 in additional student debt relief for undergraduate and graduate students whoAdditional federal student loan relief options, perform national or community service. Though thereincluding lengthier forbearance periods and may be public pressure to implement even moreincome-based repayment. progressive measures, such as complete student debt 46'