The Massachusetts Educational Financing Authority, a student loan agency, announced Wednesday that it is ending its membership in a national group that has been lobbying the US Department of Education to ease regulations on loan servicers.
MEFA’s decision comes a day after nearly 50 state legislators sent a letter to the National Council of Higher Education Resources demanding to know why it was part of a lobbying group that was, “working to undermine consumer protections for student loan borrowers.”
The trade organization that represents the student loan industry. It has lobbied on behalf of servicers on such issues as limiting the ability of states to regulate student loan servicers, some of whom have been accused by state attorney generals, of violating consumer protections.
MEFA said only a small fraction of the $12,800 it paid in membership dues this past year went to federal lobbying and that it isn’t impacted by the changes to loan servicing. MEFA provides private loans for Massachusetts residents and those who attend college in the state.
State Sen. Eric Lesser, a Longmeadow Democrat, said he was grateful for MEFA’s decision to leave the trade group and encouraged student loan financing agencies in other states to do the same.
Deirdre Fernandes can be deidre.fernandes@globe.com. Follow her on Twitter @fernandesglobe.