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Press Releases

September 18, 2017
WASHINGTON, D.C. – According to the Consumer Financial Protection Bureau (CFPB), the National Collegiate Student Loan Trusts and their debt collector, Transworld Systems, Inc. together filed more than 2,000 illegal student loan debt collection lawsuits between 2001 and 2007. The actions were violations of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act. Specifically, the lawsuits filed lacked required documentation and included both false and misleading affidavits. Many of the lawsuits pursued debts the trusts could not prove were owed. Additionally at least another...
September 14, 2017
WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) and Americans for Financial Reform (AFR) released a bipartisan poll that finds voters across the country overwhelmingly support policies that allow student loan borrowers to refinance their loans (91% in favor), enroll into affordable payment options based on income (90% in favor), and have their debt forgiven after 10 years of payments if they work in qualifying public service jobs or non-profit organizations (70% in favor). The poll was conducted by Lake Research Partners and Chesapeake Beach Consulting, and it was part of a...
September 5, 2017
WASHINGTON, D.C. – U.S. Secretary of Education Betsy DeVos recently announced that the Department will stop working with the Consumer Financial Protection Bureau (CFPB) in oversight cases of student loan fraud. The partnership to share information between the two federal agencies had been in place since 2011 and has been responsible for providing students with relief after being defrauded by higher education institutions and bad student loan servicing practices. The decision to end this partnership will severely reduce oversight of the industry and hold it less accountable to the public....
August 17, 2017
Gainful Employment Rule Should Focus on Students, Not Institutions WASHINGTON, D.C. – Today, the U.S. Department of Education announced that it would loosen regulatory standards affecting for-profit colleges and other career education programs. Failing institutions will now have until February 2018 to submit alternate earnings appeals and until October 2017 to submit an intent to appeal. Further, in submitting appeals, these institutions also will no longer be required to meet threshold response rates for graduate survey participants or ensure that any state data used is representative of...
August 2, 2017
WASHINGTON, D.C. – U.S. Department of Education Secretary Betsy DeVos recently announced a decision to drop a plan that would have created a single student loan servicer for the nation. The reversal followed a related call by a group of bipartisan Senators to keep the Department’s current use of multiple loan servicers. Whitney Barkley-Denney, a senior policy counsel with the Center for Responsible Lending released the following statement: Secretary DeVos' decision to drop an ill-advised plan for a single loan servicer for the entire nation is a late recognition that acknowledges the...
July 6, 2017
WASHINGTON, D.C. – Today, Attorneys General from 18 states, plus the District of Columbia, filed a lawsuit against Secretary Betsy DeVos and the U.S. Department of Education over the department’s decision to halt the Borrower Defense to Repayment rule, which is meant to protect federal student loan borrowers from abusive for-profit colleges and provide relief for students defrauded by them. The suit is led by Massachusetts Attorney General Maura Healey. Center for Responsible Lending (CRL) Counsel Ashley Harrington released the following statement: These Attorneys General are setting an...
June 14, 2017
WASHINGTON, D.C. – Today, the U.S. Department of Education announced its decision to rollback important rules that protect students from the abusive practices of predatory for-profit institutions—the Borrower Defense to Repayment and Gainful Employment regulations. The announcement detailed not just delays in implementation and enforcement of the current rules but an entirely new rulemaking process. Center for Responsible Lending (CRL) Policy Counsel Whitney Barkley-Denney released the following statement: We are deeply disappointed in the Trump Administration’s continued effort to put...
May 31, 2017
WASHINGTON, D.C. - Today, U.S. Senator Elizabeth Warren (D-Mass.) announced the launch of DeVos Watch, a new online resource that will elevate emerging issues affecting actions and developments pursued by U.S. Department of Education Secretary Betsy DeVos. The online platform will be hosted on Senator Warren's website. Center for Responsible Lending (CRL) Counsel Ashley Harrington released the following statement: We applaud Senator Warren's leadership for holding Secretary DeVos and the Department of Education accountable to students and parents. This new resource will be valued not...
May 23, 2017
The Department of Education Budget Cuts Funds from Better Alternatives to Predatory For-Profits and Eliminates Aids to Debt Reduction WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) assessed that cuts of $10.6 billion from federal education initiatives announced in the Department of Education’s proposed budget include measures that will drive low-income college students to for-profit colleges that leave them with heavy debt and frequently, no degrees. The budget is also expected to exacerbate the explosive burden of student loan debt that now follows millions of...
May 22, 2017
New Rules Will Create a Monopoly for a Single Servicer and Eliminate Requirements for Several Important Services WASHINGTON, D.C. - Today, the Center for Responsible Lending (CRL) expressed concern that new requirements released by the U.S. Department of Education in its contract solicitation for a future loan servicer will narrow the nation’s student loan servicers from nine to a single servicer, essentially creating a monopoly over management of a $1.3 trillion loan portfolio. The requirements also eliminate several services that the former administration had expected of student loan...

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