Student Loan Servicing Alliance v. Taylor

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUl\/IBIA ) STUDENT LOAN SERVICING ) ALLIANCE, ) ) Plaintiff, ) ) v. ) Civil Action No. 18-0640 (PLF) ) DISTRICT OF COLUMBIA, e_t ads ) ) Defendants. ) _ ) OPINION This case involves the important question of Whether the District of Columbia - and inferentially other states - may require student loan servicers Who manage federally-owned and federally-guaranteed student loans to obtain a license to operate in the District of Columbia in an effort to protect the consumers of those loans. Plaintiff Student Loan Servicing Alliance (“SLSA”) maintains that the District of Columbia may not regulate such servicers because Congress has preempted the field of regulating student loans servicers or has otherwise preempted the law at issue - D.C. Law 21-214 and the Final Rules. SLSA’s position is supported by the United States, which has filed a statement of interest in this case. Defendants -the Di~strict of Columbia; Stephen C. Taylor, Commissioner, Department of Insurance, Securities, and Banking; and Charles A. Burt, Student Loan and Foreclosure Ombudsman - have moved [Dkt. 'No. 21] to dismiss SLSA’s amended complaint or, in the alternative, for summary judgment SLSA filed a cross-motion [Dkt. No. 27] for summary judgment. Upon careful consideration of the parties’ papers, the relevant legal authorities, the oral arguments of counsel at a motions hearing on October 23, 2018, and the entire record in this case, the_ Court will deny defendants’ motion to dismiss; grant defendants’ motion for summary judgment in part; and grant in part and deny in part plaintiff’s motion for summary judgment.l l The Court has reviewed the following filings in resolving the pending motions: SLSA’s Amended Complaint (“Am. Compl.”) [Dkt No. 19]; Defendants’ Motion to Dismiss or, in the Alternative, for Summary Judgment (“Def. MTD”) [Dkt No. 21]; Defendants’ Statement of Material Facts As To Which There ls No Genuine Dispute (“Def. Facts”) [Dkt. No. 21-3]; SLSA’s Cross-Motion for Summary Judgment (“Pl. Cr-MSJ”) [Dkt No. 27-1]; SLSA’s Statement of Facts (“Pl. Facts”) [Dkt. No. 27-3]; Defendants’ Memorandum in Opposition to SLSA’s Cross-Motion for Summary Judgment and Reply in Support of l\/lotion to Dismiss (“Def. Opp.”) [Dkt. No. 30]; SLSA’s Reply in Support of Cross-l\/lotion for Summary Judgment (“Pl. Reply”) [Dkt. No. 33]; Defendants’ Supplemental Filing in Response to the Court’s October 10, 2018 Minute Order (“Def. IG Immunity”) [Dkt. No. 34]; SLSA’s Supplemental Brief on Application of the lntergovernmental lmmunity Doctrine (“Pl. IG lmmunity”) [Dkt. No. 35]; United States’ Statement of Interest (“U.S. SOI”) [Dkt. No. 20]; Amicus Brief by Lawyers’ Committee, et al. (“Am. Br. Lawyers’ Committee) [Dkt. No. 24]; Amicus-Brief by State of New York, et al. (“Am. Br. NYS”) (Dl