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Press Releases

January 19, 2017
Suit against Navient underscores need to keep the CFPB undisturbed with Richard Cordray as director. The Consumer Financial Protection Bureau (CFPB) announced it is suing Navient, formerly part of Sallie Mae and the nation’s largest servicer of both federal and private student loans, over allegations that it routinely cheated borrowers out of their right to lower loan repayments based on their income. Navient also failed to properly apply payments, steered borrowers toward costlier repayment plans, and buried information that could have both lowered payments and let borrowers release...
January 19, 2017
Today, the Center for Responsible Lending (CRL) released research showing troubling outcomes at Colorado’s four-year for-profit colleges. For-profit colleges leave students with lower graduation rates, higher debt loads, and higher defaults on that debt. These difficulties fall especially heavily on students of color, who are disproportionately enrolled in for-profit colleges in Colorado. CRL analyzed date from the U.S. Department of Education and found the following: The graduation rate at Colorado’s four-year for-profit schools averaged only 26% -- only one out of four students...
January 5, 2017
Research released earlier today by the Consumer Financial Protection Bureau (CFPB) finds that a growing number of consumers aged 60 or older are struggling financially to repay student loans. The majority of these loans were either co-signed or borrowed on behalf of younger family members. From 2005 to 2015, the number of senior citizens affected quadrupled from 700,000 to 2.8 million. The average debt owed by older borrowers also doubled during this time period from $12,000 to $23,500.  Since 2015, nearly 40 percent of older federal student loan borrowers aged 65 or older were in...
December 20, 2016
Two recent federal actions underscore the challenges many college graduates have getting licensed in their career fields because of inadequate higher education regulations. The Career Ready Student Veterans Act, passed on December 13, prevents the Veterans Administration from approving programs for GI Bill dollars if graduates are ineligible for licensure in licensed programs. And on Friday, the U.S. Department of Education released final rules on postsecondary distance education programs. The final rules require that colleges be authorized to operate in the states where their students...
December 15, 2016
DeVry University, one of the nation's largest for-profit universities has agreed to a multi-million dollar lawsuit settlement with the Federal Trade Commission (FTC). The case filed in January 2016 charged that at least since 2008, DeVry's deceptive marketing tactics deliberately sought to lure students into enrollment with false promises of job and income security upon graduation. Prospective students were told in their recruitment and in advertising that 90 percent of DeVry graduates would secure employment within six months of matriculation in their chosen fields. A second institutional...
October 28, 2016
Today, the U.S. Department of Education announced final regulations amending the Borrower Defense to Repayment provision of the Higher Education Act (HEA) to ensure that students and taxpayers do not have to bear the financial burdens that arise when predatory higher learning institutions make misrepresentations and fail to provide students with an adequate education. These kinds of bad practices severely limit students’ professional outcomes and ability to repay their loans. The Center for Responsible Lending (CRL) is particularly concerned about the impact of these practices on borrowers of...
September 23, 2016
The Center for Responsible Lending (CRL) lauds the U.S. Department of Education’s decision to terminate federal recognition of the Accrediting Council for Independent Colleges and Schools (ACICS). This action will prevent schools accredited by ACICS from participating in federal financial aid programs.  Approximately 550,000 students are currently enrolled in schools accredited by ACICS.   Many of these students are enrolled at for-profit colleges and universities.  Two for-profit institutions, Corinthian Colleges and ITT Technical Education Services were both closed as a...
September 12, 2016
Today, the Center for Responsible Lending (CRL) welcomed the Consumer Financial Protection Bureau's action against Bridgepoint Education, Inc., a for-profit college chain based in San Diego, Calif., for deliberately misleading students into taking out private education loans that cost more than advertised. Under the action, CFPB is ordering Bridgepoint to discharge any and all outstanding private loans made to its students and refund loan payments already made by borrowers. The total loan forgiveness and refund is estimated to be more than $23.5 million, and Bridgepoint is required to pay an...
September 6, 2016
In response to today’s announcement that ITT Technical Educational Services, Inc. will close all of its nationwide locations, the Center for Responsible Lending’s Whitney Barkley, a policy counsel specializing in student loans made the following statement: Although ITT Tech blamed its closures on August 25 Department of Education supervisory actions, the institution was facing multiple state investigations as well as other serious signs of approaching failure. The first danger signal came when the Accrediting Council for Independent Colleges and Schools found that ITT Tech was "not...
June 29, 2016
New research report by The Institute for College Access and Success (TICAS) finds that North Carolina is one of three states across the country where community college students are notably shortchanged on federal student loans. The report, States of Denial: Where Community College Students Lack Access to Federal Student Loans, documents substantial disparities in loan access by state, race/ethnicity, and urban/non-urban status during the 2015-16 academic year. Close to half of North Carolina's community college students—53 percent—have no access to these loans. Whitney Barkley, an...

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