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Press Releases

December 6, 2018
DURHAM, NC. – In response to the nation’s still-spiraling student loan debt, the Center for Responsible Lending (CRL) convened a day-long summit to examine the impacts and solutions for North Carolina. People from around the state gathered at the Durham Convention Center for this working conference and included a wide variety of stakeholders that included: banks, colleges and universities, as well as advocates representing older Americans, veterans, community developers, low-income residents and others. Throughout the day, people shared their own powerful and personal stories of how...
October 16, 2018
DURHAM, N.C. – A new Center for Responsible Lending (CRL) policy analysis calls for the State of New Jersey to protect student borrowers from abusive practices in the face of weakening federal protections. New Jersey, which ranked sixth in the nation for the level of debt carried by 2017 graduates, can take concrete steps to protect their citizens from the worst impacts of a student loan crisis that is rocking the nation. CRL is releasing the report as part of the New Jersey Citizen Education Fund’s 9th Annual Financial Reform Summit being held today in Newark....
October 3, 2018
WASHINGTON, D.C. – The U.S. Department of Education publicly announced that it would miss a November 1 deadline to issue new rules to replace Obama-administration rules known as Borrower Defense to Repayment and Gainful Employment. Under Secretary DeVos, the Department had sought to delay, suspend, and rewrite the rules designed to protect students and hold career and technical colleges accountable. The Center for Responsible Lending (CRL) and other students and advocates were deeply concerned about the Department’s new proposals, which significantly weakened oversight and recourse for...
September 11, 2018
WASHINGTON, D.C. – On Monday September 10, 2018, the national Lawyers’ Committee for Civil Rights Under Law (Lawyers’ Committee), the Center for Responsible Lending (CRL), and the National Student Legal Defense Network (NSLDN) filed a brief in the D.C. District Court to advocate on behalf of D.C. in a lawsuit challenging the District’s right to pass laws that better protect residents against the problematic practices of servicing companies that manage student loan repayment. The brief filed in Student Loan Servicing Alliance v. Taylor, et al. urges the court to reject the plaintiff loan...
August 29, 2018
Report from Center for Responsible Lending exposes hardships faced by students of for-profit colleges that exploit a weak regulatory system DURHAM, N.C. -- For-profit colleges in Florida prey on economically vulnerable students, enticing them to enroll in poor quality programs with promises of good-paying jobs upon completion, but little real opportunity for career advancement. A new report by Center for Responsible Lending (CRL), based on focus groups and surveys of former students, demonstrates that for-profit colleges target vulnerable communities through intense advertising and...
August 27, 2018
WASHINGTON, D.C. – Today, Seth Frotman, the Assistant Director and Student Loan Ombudsman with the Consumer Financial Protection Bureau (CFPB) resigned after seven years of government service with the agency. His resignation is effective September 1, 2018. In response, Ashley Harrington, a policy counsel with the Center for Responsible Lending Counsel released the following statement: It is unfortunate for the 44 million student loan borrowers who together now owe in excess of $1.5 trillion to learn that the dedicated civil servant who shared their concerns has departed the CFPB. As...
August 10, 2018
WASHINGTON, D.C. – Today, U.S. Department of Education Secretary Betsy DeVos announced her plan to repeal the Gainful Employment (GE) rule which would hold career education institutions, especially for-profit colleges, accountable for their costs and actual student outcomes. The GE rule, which went into effect in 2014, was based on the simple, practical premise that a program should enable its students to earn enough money to pay back the debt required for its completion. Since 2017, the for-profit college industry has heavily lobbied the agency to rescind or weaken the GE rule as well as...
July 25, 2018
WASHINGTON, D.C. – Today, the U.S. Department of Education released a draft proposal to overhaul the Obama Administration’s Borrower Defense to Repayment rule. The revision would alter how students secure loan forgiveness when institutions fail to deliver promised requisite skills and knowledge. Under the new proposal, student borrowers would qualify for corrective action only when they could document institutional misrepresentations related to the program of study. Further, borrowers would be required to prove that institutional misrepresentations were made with knowledge, intent or a...
July 24, 2018
WASHINGTON, D.C. – Today, U.S. Representative Bobby Scott (Va.–03), Ranking Member of the Education and the Workforce Committee, introduced the Aim Higher Act, a bill to make higher education institutions—particularly for-profit colleges—more accountable and transparent to the public. The legislation also includes resources to boost college financial aid support programs for low-income students and improves the current loan repayment system. Across the country, 44 million consumers share the still-growing burden of $1.5 trillion in student loan debt. Center for Responsible Lending Counsel...
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...

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