State AGs Crack Down on Student Lenders

From the NYT: 

State attorneys general around the country are stepping up their scrutiny of college lending practices in the absence of federal enforcement action, following a pattern that experts say has prevailed in some other major consumer investigations in recent years...

The state-by-state regulatory action, so far limited largely to efforts by Democrats, comes at a time of little progress in the development of federal rules on lenders’ dealings with colleges. A bid by the Education Department to negotiate such rules collapsed on Friday in disagreement among representatives of colleges, banks and other groups.

Education Secretary Margaret Spellings, aides say, now plans to form a task force that will recommend federal rules, which would govern lender gifts to colleges and university officials, how colleges refer students to lenders and how to prevent lenders’ misuse of a national student data system.

But Ms. Spellings is in danger of being overtaken both by Congress, which is considering new legislation, and by the attorneys general.

Just one more example of how conservatives failed to meet the governing challenges of our time.  Although, maybe it was less of an abdication or responsibility and just a reminder that they were too busy playing politics with the justice department to deal with the people's business.