CRL in the News
The Consumer Financial Protection Bureau, once one of the most aggressive regulators of education loan companies, is signaling a retreat from oversight of federal student loans by limiting the duties of its new ombudsman. On Friday, the bureau announced the appointment of Robert G. Cameron as its ombudsman for private education loans, charged with receiving, reviewing and resolving borrower complaints. But those responsibilities previously extended to federal student loans as well.
Student loan debt is no doubt a drag on the U.S. economy, holding back how much money young consumers can spend on cars, homes and even invest in 401(k) plans or new businesses.
But the debt crisis is giving an early kick start to the 2020 Democratic presidential race. One candidate after another has generated some buzz by offering up one freebie or another for tackling $1.5 trillion in student loan debt.
This week, the Center for Responsible Lending and the National Association for the Advancement of Colored People (NAACP) released a report finding that student loan debt is unsustainable for many student borrowers, especially borrowers of color.
A coalition of consumer groups is asking the CFPB to extend the comment period for the agency’s controversial proposed debt collection rules by two months.
Outstanding student debt continues to grow, with some 43 million Americans owing a total $1.4 trillion in federal student loan debt alone.
When Senator Elizabeth Warren, a contender for the 2020 Democratic presidential nomination, joined House Majority Whip James Clyburn in unveiling an ambitious student debt cancellation bill Tuesday, she said they weren’t “looking for one headline” about the $640 billion proposal.
Clyburn, a member of the Democratic leadership, said he plans to push legislation that could pass in the House. The South Carolina lawmaker added that the bill was about making headway over headlines.
Even as the Consumer Financial Protection Bureau (CFPB) moves to update the Fair Debt Collection Practices Act of 1977 to better reflect the impact of newer communications technology, some consumer advocates point to the inadequacy of the proposed measures.