New York state's financial services regulator has created a new position that will act as a watchdog on behalf of student loan borrowers in the state and serve as a liaison between the agency and consumers that have concerns about the industry.

The state Department of Financial Services announced Tuesday that Winston Berkman-Breen will serve as the agency's first-ever student advocate and director of consumer advocacy.

Berkman-Breen was most recently an attorney with the Consumer Protection Unit at the New York Legal Assistance Group, where he represented low-income borrowers in litigation against predatory lenders and debt collectors.

Linda Lacewell, superintendent of the agency, said they decided to create the position as another way for New York to become more active on the issue at a time when federal regulators are doing less.

"Winston's extensive background advocating for student borrowers will further strengthen the Department's leadership in protecting New York students and their families as the burden of student debt grows with zero help from Washington," Lacewell said. "New York is stepping up for students while Washington steps down."

The new position, according to DFS, will advocate on behalf of students, and review complaints from borrowers to deliver and execute recommendations to the agency. 

Berkman-Breen's appointment comes a few weeks after the Consumer Financial Protection Bureau announced a new student loans ombudsman, but limited the position's oversight to private loans. It used to monitor federal student loans as well.

He was also co-chairman of the Student Loan Working Group for New Yorkers for Responsible Lending, a coalition that promotes access to financial services in the state, and previously served as a fellow with the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School.

"I look forward to bringing my experience to DFS to speak with students and their families, help them through the often-confusing loan process, and empower them to make informed decisions about their education and financial futures," Berkman-Breen said.

DFS has ramped up efforts in recent months to expand and focus its oversight over the state's student loan industry. 

Aside from the new position, DFS also proposed a new regulation at the end of July that would require student loan servicers to more promptly respond to complaints from consumers, provide clearer information on financing options to those individuals, and apply payments only in ways that are in the best interest of borrowers.

That built on legislation approved by state lawmakers earlier this year that allows DFS to regulate and license student loan servicers that serve New York borrowers. The agency did not previously have that explicit power.

"DFS's recently proposed regulation will provide significant protections for New Yorkers and we are actively preparing to implement and enforce New York's recently enacted student loan servicer legislation," Lacewell said.

The agency also recently launched an investigation into the student "debt relief" industry in New York, which included eight subpoenas to companies that claim to offer that service. The investigation, according to DFS, will look into deceptive practices, such as misleading advertising and unscrupulous fees.

READ MORE: