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Press Releases

September 24, 2014
This week, the Department of Education released new data about student loan default rates – indicating that for-profit college students continue to experience disproportionately high levels of default. Maura Dundon, senior policy counsel at CRL, issued the following statement: New data released yesterday by the Department of Education show that for-profit colleges, once again, account for a disproportionate share of the nation's student loan defaults. This poor performance further justifies the need for a strong "gainful employment" rule, which is currently being drafted by...
September 17, 2014
Yesterday, the Consumer Financial Protection Bureau (CFPB) sued Corinthian Colleges, Inc., the for-profit college company. The consumer protection agency claims that Corinthian engaged in deceptive and predatory lending practices in an effort to recruit students, get them to take out private student loans, and then to collect on those loans. Maura Dundon, senior policy analyst at CRL, issued the following statement: Corinthian Colleges, one of the largest for-profit colleges companies in the United States, has long engaged in reprehensible practices that leave students with...
June 25, 2014
On Tuesday, Senator Tom Harkin (D – IA) introduced a bill reauthorizing the Higher Education Act, the Higher Education Affordability Act, aimed in part at reducing the burden of student loans on borrowers and addressing abuses in student lending. In response to the bill, Center for Responsible Lending Senior Policy Counsel Maura Dundon said: The Center for Responsible Lending applauds Senator Harkin for his commitment to higher education and making substantive reforms protecting students as consumers of financial products and services. The proposed Higher Education Affordability Act...
June 11, 2014
Senator Warren's Bank of Students Emergency Loan Refinancing Act Provides Important Options for Refinancing Student Loans This week, the Senate will vote on Senator Elizabeth Warren's Bank of Students Emergency Loan Refinancing Act, which would allow borrowers to refinance student loans at lower rates. Representatives Miller and Tierney have also introduced a companion bill in the House. The Center for Responsible Lending joins a robust group of education, labor, student, and consumer organizations supporting the bill. In a statement issued today, Senior Policy Counsel Maura...
June 10, 2014
Yesterday, President Barack Obama held a White House briefing and signed a Presidential Memorandum calling for new refinancing options, expanding access to income-based repayment, better outreach to distressed borrowers, and more accountability for student loan servicers. Later this week, the Senate is scheduled to vote on Senator Warren's Bank on Students Emergency Loan Refinancing Act, which would allow borrowers to refinance federal and private student loans at lower rates. Representatives Miller and Tierney have also introduced a companion bill in the House. In a statement...
May 28, 2014
Today, the Center for Responsible Lending joins an extensive group of education, student, civil rights, consumer, veterans, and labor groups in calling for strong for-profit college regulations. Yesterday was the last day to file comments on regulation proposed by the Department of Education, called the "gainful employment rule." The gainful employment rule, proposed in March of this year, aims to create standards for trade, career, and for-profit institutions. "Far too many students enroll in for-profit institutions because of high-pressure and deceptive sales tactics, rather than...
March 14, 2014
The Department of Education's proposed "gainful employment" rule is a step forward but falls short of protecting consumers from unaffordable debt created by predatory educational programs at for-profit colleges, according to the Center for Responsible Lending."The rule, as it stands now, does not adequately protect students," said Maura Dundon, senior policy counsel at CRL. "It allows too many students to emerge from for-profit institutions with no ability to repay their loans. No career-college student should ever say that 'going to college was the worst mistake in my life' because of her...
February 28, 2014
Experts at the Center for Responsible Lending applauded the CFPB for their aggressive action on the for-profit university ITT Tech. According to the CFPB, "ITT exploited its students and pushed them into high-cost private student loans that were very likely to end in default. The CFPB is seeking restitution for victims, a civil fine, and an injunction against the company." This marks an important step forward in abusive lending practices against students, according to CRL senior policy counsel Maura Dundon. "Abusive lending via student loans is particularly egregious practice," said...
November 12, 2013
The Center for Responsible Lending applauds the Federal Trade Commission for its tough new guidance against deceptive practices by vocational schools. "The FTC's new guidance on vocational schools identifies some of the most deceptive practices by for-profit colleges," said Maura Dundon, Senior Policy Counsel at the Center for Responsible Lending. "For-profit colleges that mislead students about their expected salaries, job placement, or the quality of the education should take notice that they are violating the FTC Act. The guidance does not technically extend to all for-profit colleges...

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