Skip to main content

Search form

Press Releases

March 19, 2020
WASHINGTON, D.C. - Today, the Center for Responsible Lending (CRL) applauded the introduction of an emergency student loan payment and debt cancellation plan introduced by U.S. Senators Chuck Schumer (D-N.Y.), Patty Murray (D-Wash.), Sherrod Brown (D-Ohio), and Elizabeth Warren (D-Mass.). The plan would provide needed relief to federal student loan borrowers through immediate cancellation of monthly student loan payments for the duration of the national emergency caused by the spread of the COVID-19, and a pay down of a minimum $10,000 for all federal student loan borrowers. In July...
March 18, 2020
WASHINGTON, D.C. - Today in a board meeting, the Federal Deposit Insurance Corporation (FDIC) announced that it has approved industrial loan company (ILC) applications for Square Financial Services, Inc. and federal student loan servicer Nelnet Bank. The agency also recently announced a notice of proposed rulemaking on ILCs. By approving these ILC applications, the FDIC has broadened the ability of commercial companies to engage in banking activities, including online lending. ILCs provide a way into the banking system for commercial companies, which are otherwise not permitted to own...
March 11, 2020
If approved by the President, the Obama-Era 2016 Borrower Defense rule would stay in effect and provide relief for students defrauded by for-profit colleges WASHINGTON, D.C. – Today, through a Congressional Review Act (CRA) resolution, the U.S. Senate voted to invalidate U.S. Secretary of Education Betsy DeVos’ 2019 harmful Borrower Defense (BD) Rule, scheduled to go into effect this summer. If the President signs the CRA resolution, it would void DeVos’ BD rule and leave in effect the 2016 Obama Administration BD rule, which would continue its purpose of providing relief for students...
January 16, 2020
WASHINGTON, D.C. – The U.S. House of Representatives passed, H.J.Res. 76, a resolution disapproving the Department of Education’s current Borrower Defense to Repayment rule under the Congressional Review Act. Once in effect, the 2019 regulation will severely weaken accountability for predatory for-profit colleges, prevent defrauded students from accessing relief, and fuel the growing $1.5 trillion student debt crisis that disproportionately affects students of color. The resolution, introduced in November by U.S. Representative Susie Lee (D-Nev.), seeks to protect students and taxpayers...
December 10, 2019
WASHINGTON, D.C. – Today, the U.S. House of Representatives passed the FUTURE Act, a bill to extend important mandatory funding for Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions (HSIs), Tribally Controlled Colleges or Universities (TCUs), and Minority-Serving Institutions (MSIs) that expired in September. The legislation is expected to get the U.S. Senate’s final approval. The bill includes a Senate agreement to permanently reauthorize $255 million for these higher education institutions and the FAFSA Act, a measure that makes it simpler for the...
December 10, 2019
WASHINGTON, D.C. – Today, U.S. Secretary of Education Betsy DeVos released a student loan debt relief formula that undercuts defrauded borrowers, particularly those who went to ITT Tech and Corinthian Colleges. The flawed and convoluted methodology, which will be applied to the more than 200,000 outstanding claims pending review by the department, seeks to make it difficult for students to get relief. Center for Responsible Lending (CRL) Senior Policy Counsel Ashley Harrington released the following statement: Once again, Secretary DeVos has demonstrated that her goal is to protect...
December 10, 2019
WASHINGTON, D.C. – The Federal Trade Commission (FTC) announced today that the University of Phoenix, owned by Apollo Education Group, must pay $191 million to settle federal charges that it used false advertisement to lure its students with job placement promises at major U.S. corporations. The FTC said it was the largest settlement ever reached against a for-profit school. Whitney Barkley-Denney, a senior policy counsel at the Center for Responsible Lending (CRL), released the following statement: University of Phoenix used billions of taxpayer dollars to create an ad campaign based...
December 5, 2019
WASHINGTON, D.C. – Today, the U.S. Senate passed a bipartisan agreement to permanently reauthorize $255 million for Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Hispanic-Serving Institutions (HSIs), and other Minority-Serving Institutions (MSIs). The agreement amends the FUTURE Act, a bill that passed the House in September. The proposal also includes the FAFSA Act, a measure that makes it simpler for the Department of Education and the Internal Revenue Service (IRS) to share student tax data. This would help streamline the financial aid...
October 31, 2019
WASHINGTON, D.C.— Today, the U.S. Department of Education released the final version of federal regulations for accreditation and state authorization for online institutions. Set to take effect in July 2020, the new rules would lead to a spiraling decline in the quality of the nation’s higher education system, costly and fruitless expenditures of student time and money, and a cost of up to $3.8 billion to U.S. taxpayers. The Department’s final rule does not reflect the consensus reached during the negotiated rulemaking earlier this year. "By weakening the accreditation system, the...
October 25, 2019
Continuing state action will hasten fair practices across the industry DURHAM, N.C. – A new wave of state legislation passed in 2019 continues the trend of states addressing abuses in the student loan servicing industry, according to a report by the Center for Responsible Lending (CRL) titled, Stepping Up: States Move to Hold Student Loan Servicers Accountable. The analysis notes that, since 2015, thirteen states have passed reforms to address the practices of companies that provide the crucial link between student borrowers and successful repayment of their loans. Those states include...

Pages