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Press Releases

May 29, 2020
WASHINGTON, D.C. – Today, President Donald Trump vetoed H.J. Res. 76, a resolution which would have invalidated the Department of Education’s 2019 harmful Borrower Defense (BD) Rule. The 2019 rule weakens accountability for predatory for-profit colleges and prevents defrauded students from accessing relief. Center for Responsible Lending Federal Advocacy Director and Senior Counsel Ashley Harrington released the following statement: Despite bipartisan Congressional support, and advocacy by several veterans groups, the Trump Administration has once again chosen to shield predatory for-...
May 15, 2020
WASHINGTON, D.C. – Today, the U.S. House of Representatives passed the HEROES Act (H.R. 6800), the latest legislative response to the unprecedented COVID-19 public health and economic crisis. Center for Responsible Lending (CRL) Federal Advocacy Director and Senior Counsel Ashley Harrington issued the following statement: The HEROES Act shows strong promise and addresses important needs of low-wealth families impacted by COVID-19, such as mortgage and forbearance relief, extended unemployment benefits and food assistance, and protections against harmful debt collection activities and...
May 12, 2020
“A majority of Americans across all regions of the U.S. support permanently reducing student loan debt by $20,000 for all borrowers.” WASHINGTON, D.C. - The Center for Responsible Lending (CRL) and Americans for Financial Reform (AFR) released a bipartisan poll today showing that Americans around the country and across partisan identities strongly support student debt reduction during the COVID-19 pandemic. Specifically, the poll indicates that a majority of voters support at least $20,000 in student debt reduction. Lake Research Partners and Chesapeake Beach Consulting designed this...
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...

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