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Press Releases

July 13, 2018
OAKLAND, CALIF. - Great Lakes Educational Loan Services, Inc., one of the country’s largest student loan servicers that was acquired by NelNet Inc. last February, has signaled to the California Department of Business Oversight (DBO) that it will not comply with that state’s Student Loan Servicing Act of 2016. The law requires that in order for a servicer to operate in the state, it must apply for state licenses. Great Lakes is claiming that it will follow the U.S. Department of Education's footsteps in seeking to thwart state authority to hold student loan servicers accountable.  This...
June 29, 2018
OAKLAND, CA – Yesterday, California Attorney General (AG) Xavier Becerra filed a lawsuit against Navient Corporation, the nation's largest student loan servicer and its subsidiaries for violations of the state's Unfair Competition and False Advertising Law. Approximately 1.5 million student loan borrowers in California could be affected by the litigation.  Specifically, the lawsuit charges that Navient: Steers vulnerable borrowers toward more expensive repayment plans; Fails to adequately disclose how students could access income-driven repayment certification; Misrepresents...
June 14, 2018
OAKLAND, CALIF. – Today at a press conference, California Attorney General Xavier Becerra announced a settlement of $67 million in debt relief for former California students of Corinthian Colleges. The for-profit college, which the federal government shut down four years ago, was a  higher education predatory institution that targeted African Americans and Latinos. Attorney General Becerra’s announcement comes as the U.S. Department of Education is rolling back important safeguards to protect students from the student loan debt crisis. Center for Responsible Lending Government...
June 7, 2018
Numbers Confirm Abysmal Outcomes While Focus Groups Reveal the Human Impact of Bad Federal Education Policy; State Action Crucial DURHAM, N.C. – A new Center for Responsible Lending (CRL) research report finds that students who enroll in healthcare support programs at for-profit schools end up carrying much more debt relative to their earnings than do their peers in similar public programs. Tuition and fees for these for-profit programs can exceed $17,000 for an 11-month program, an amount that may seem worth it when the marketing materials of for-profit colleges greatly exaggerate the...
May 10, 2018
WASHINGTON, D.C. – This morning, education and consumer advocates convened outside the Consumer Financial Protection Bureau (CFPB) to condemn the announced plan by Mick Mulvaney of the Trump Administration to dissolve the CFPB’s Office for Students and Young Consumers. Watch video of the press conference that included representatives from twelve states, DC, and the US Virgin Islands. "Mulvaney is shutting the Office for Students in the middle of a student debt crisis. It's like sending the fire trucks home in the middle of a three-alarm fire," said Alexis Goldstein, Senior Policy...
May 9, 2018
WASHINGTON, D.C. – Mick Mulvaney, the unlawful Acting Director of the Consumer Financial Protection Bureau (CFPB), announced today that he is closing the Bureau’s Office of Students and folding it into the Office of Financial Education. The closure is the latest in a series of actions and proposals that threaten to undermine the consumer protections that have been put into place by the CFPB to address large-scale abuses within our financial system. Whitney Barkley-Denney, senior policy counsel with the Center for Responsible Lending, issued the following statement: The former director...
May 8, 2018
Only 12% of Marylanders think that U.S. Department of Education is doing a good job overseeing student loan servicers. WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) released a poll showing that 91% of Maryland voters agree that the State of Maryland to has a responsibly to protect residents with student loan debt. This includes high level of concern about the student loan debt crisis, and concerns about abusive practices by student loan servicers, such as Navient, which often deepen student’s debt burden. The polling results also shows that only 12% of Marylanders...
April 26, 2018
WASHINGOTN, D.C. – The Center for Responsible Lending (CRL) joined The Leadership Conference on Civil and Human Rights and 46 other national civil rights organizations in announcing new principles for the reauthorization of the Higher Education Act (HEA). The principles are rooted in boosting college access for all students and addressing the student loan debt crisis. The HEA was first passed in 1965 at the height of the civil rights movement in response to public demands from communities of color that the federal government do more to expand higher education opportunities for students...
April 6, 2018
PHEAA Should Drop the Lawsuit; DOE Should Respect State’s Rights to Address Historically Problematic Practices WASHINGTON, D.C. – The Pennsylvania Higher Education Assistance Agency (PHEAA), one of the nation's largest student loan servicers, is suing the state of Connecticut in order to circumvent a 2015 law to protect student loan borrowers in the state from negligent and predatory servicing practices. Last year, PHEAA was sued by the state of Massachusetts for allegedly overcharging student borrowers and failing to put them into the income-based repayment plans, mismanaging the...
March 16, 2018
OAKLAND, CALIF. – Washington Governor Jay Inslee signed the Washington Student Education Loan Bill of Rights into law yesterday, which will provide strong protections for the more than 730,000 student loan borrowers in the state carrying $22.9 billion in student loan debt. The law will establish a Student Loan Advocate to review complaints, and will authorize the state to license student loan servicers so they can ensure compliance with state and federal requirements and prevent mistreatment such as misappropriating payments or making false reports to credit bureaus. "We commend Governor...

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