She may be basing here assumption of legality on some people who simple told her what she wanted to hear, when all the government experts were saying it is so obviously illegal for more than 2 years now. Her campaign released a memo by Harvard Law School’s Project on Predatory Student Lending, {PDF} which attempted to weakly justify its legality with hand-waving on overtly literal interpretations.

She might be naive enough to think this was a legitimate and objective legal assessment. Unfortunately, it was written by the school's advocacy project leaders, who are all long time activists for this same cause. They all litigate related cases and frequently form organizations, scholarships, projects, and advocate to politicians on protecting student borrowers and related issues. Don't get me wrong, they are great people who have done a lot of good. Yet, they have very narrow tunnel vision, are entangled into partisan politics due to desire for interest in their causes, one even nominated by Biden for a general council position. That particular memo was probably far from their best, otherwise they are stretching hard.