The states of Kansas, North Dakota, Michigan and Illinois are mulling consolidation of student loans, according to the Wall Street Journal.
The states have each filed separate petitions for a waiver from the federal government that would allow them to take a bigger cut of the student loan servicing fee.
The WSJ report said the federal loan servicing act gives states authority to consolidate loans in their states, but it has never been used.
Kansas and North Dakota filed their petitions last week, while Michigan, Illinois and Kansas filed their applications in January.
Sam Brownback (R) said last month that he would push for the waiver if it would save him money.
The federal government would only allow the states to consolidate if they are willing to reduce servicing fees.
The state of North Dakota has said it is not pursuing the waiver, but a spokesperson for Brownback’s office said the governor would discuss the matter with the Department of Education.
“The federal government has given us flexibility to do this.
We’re taking a look at it,” he told the Kansas City Star.