CRL in the News
These loans tend to carry much higher APRs than bank or credit union loans, according to the nonprofit Center for Responsible Lending. They also generally come with high upfront fees and require borrowers to put down what the center calls "a disproportionate percentage of the car's actual value."
"It puts so much responsibility on students and students alone," said Ashley Harrington, a lawyer at the Center for Responsible Lending, "and on no other piece of this puzzle."
“Mulvaney’s decision to halt the CFPB from moving forward on addressing abusive overdraft fee practices will severely impact poor families and communities of color,” said Rebecca Borne, Senior Policy Counsel at the Center for Responsible Lending in response.
The Black unemployment rate is almost double the 3.5 percent unemployment rate for whites and 4.6 percent for Hispanics. About eight percent of African-American homeowners lost their properties to foreclosure from 2007 to 2009, according to estimates from the Center for Responsible Lending. Also, only 43 percent of Black people owned homes in 2017, according to an annual report from the Joint Center for Housing Studies of Harvard University.
The American Association of State Colleges and Universities, the Center for Responsible Lending and Young Invincibles (which advocates for economic opportunity for young adults) all say this bill provides a practical solution to the student debt crisis and would increase access to college for low-income students.
Ashley Harrington, a policy counsel with the Center for Responsible Lending, served as a member of the negotiated rulemaking committee and said in a statement that the proposed rule "reads more like a roadmap for institutions seeking to abuse students and avoid accountability and transparency rather than a plan to protect students and taxpayers."
“For too long, for-profit colleges have failed to serve the educational purpose for which they were intended,” Harrington said. “The combination of high costs and low graduation rates by these bad actors have resulted in unfair burdens for student borrowers and taxpayers. This bill improves accountability for all higher education institutions and creates a sensible path to fix our broken student loan repayment system.”
“If it wasn’t clear before, it certainly is now,” observed Whitney Barkley-Denney, a Senior Policy Counsel with the Center for Responsible Lending.
“The Department of Education and Secretary DeVos are more interested in shielding corporate actors like Navient and for-profit colleges from taking responsibility for their bad acts,” added Barkley-Denney. “Like the Attorneys General speaking out against this latest development, we remain dedicated to standing up for students, and urge Secretary DeVos to remember who she was appointed to serve.”
According to Ashley Harrington, policy counsel with the Center for Responsible Lending, the "proposed draft reads more like a roadmap for institutions seeking to abuse students and avoid accountability and transparency rather than a plan to protect students and taxpayers."
“If it wasn’t clear before, it certainly is now,” observed Whitney Barkley-Denney, a senior policy counsel with the Center for Responsible Lending. “The Department of Education and Secretary DeVos are more interested in shielding corporate actors like Navient and for-profit colleges from taking responsibility for their bad acts.”