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Press Releases

November 10, 2017
Advisory for Monday, Nov. 13 to Wednesday, Nov. 15, 2017 Negotiated rule making process will include various education and consumer advocates from across the country. WASHINGTON, D.C. – On Monday, November 13, 2017, at approximately 9 a.m. ET the Center for Responsible Lending (CRL) along with various advocacy organizations including Consumers Union will participate in the U.S. Department of Education’s (DOE) negotiated rulemaking process on the Borrower Defense to Repayment Rule. This will be one of three meetings where CRL and other participants will gather with DOE officials to...
October 18, 2017
A lawsuit filed yesterday by 17 states and the District of Columbia accuses Education Secretary Betsy DeVos of illegally delaying enforcement of a rule designed to eliminate federal education funding from low-performing career college programs. The rule known as gainful employment was adopted by the previous administration in response to widespread concerns over the quality of instruction at these institutions. In recent years, a series of lawsuits brought by states and federal agencies challenged whether taxpayer-funded educational assistance was reaped a fair return. The rule known as...
October 16, 2017
WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released its annual Student Loan Ombudsman Report. Over the past year, the Bureau received nearly 23,000 complaints involving private student loans, federal student loan servicing and related debt collections. Additionally, the report recounts in detail how borrowers of all ages are experiencing difficulties accessing consumer protections authorized by existing laws and regulation. In response to the report, Whitney Barkley-Denney, a policy counsel and student loan specialist with the Center for Responsible Lending...
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...

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