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Press Releases

December 19, 2014
The Department of Education and other regulators are currently reviewing a planned sale of 56 Corinthian campuses to ECMC Group, Inc., a federal student loan debt collector. This sale would convert the Corinthian campuses into nonprofits, exempting them from some federal regulations applying to for-profit colleges. Yesterday, the Center for Responsible Lending, along with 49 other consumer, civil rights, labor, military, and education groups, called on federal regulators to ensure that any sale of the troubled for-profit Corinthian Colleges include significant relief for harmed...
October 30, 2014
Today, the US Department of Education released the final "gainful employment" rule imposing new limits on career education programs with poor outcomes for graduates. The final rule, which only considers the outcomes of the minority of students who graduate, is significantly weaker than the proposed rule. Nevertheless, it provides some important new protections. Maura Dundon, senior policy counsel at the Center for Responsible Lending, offered the following remarks: The Department of Education's final gainful employment rule aims to prevent programs with extremely poor outcomes from...
October 3, 2014
For-profit college attendees are more likely to incur unmanageable student loan debt and be unable to graduate than their peers attending other schools, according to new research released today by the Center for Responsible Lending. African-American and Latino students in particular have a high risk of experiencing these poor outcomes at for-profit colleges, which have a long record of engaging in deceptive practices to pressure students to enroll. "Our research shows the urgent need for the Department of Education to issue a strong Gainful Employment rule regulating for-profit colleges...
September 24, 2014
This week, the Department of Education released new data about student loan default rates – indicating that for-profit college students continue to experience disproportionately high levels of default. Maura Dundon, senior policy counsel at CRL, issued the following statement: New data released yesterday by the Department of Education show that for-profit colleges, once again, account for a disproportionate share of the nation's student loan defaults. This poor performance further justifies the need for a strong "gainful employment" rule, which is currently being drafted by...
September 17, 2014
Yesterday, the Consumer Financial Protection Bureau (CFPB) sued Corinthian Colleges, Inc., the for-profit college company. The consumer protection agency claims that Corinthian engaged in deceptive and predatory lending practices in an effort to recruit students, get them to take out private student loans, and then to collect on those loans. Maura Dundon, senior policy analyst at CRL, issued the following statement: Corinthian Colleges, one of the largest for-profit colleges companies in the United States, has long engaged in reprehensible practices that leave students with...
June 25, 2014
On Tuesday, Senator Tom Harkin (D – IA) introduced a bill reauthorizing the Higher Education Act, the Higher Education Affordability Act, aimed in part at reducing the burden of student loans on borrowers and addressing abuses in student lending. In response to the bill, Center for Responsible Lending Senior Policy Counsel Maura Dundon said: The Center for Responsible Lending applauds Senator Harkin for his commitment to higher education and making substantive reforms protecting students as consumers of financial products and services. The proposed Higher Education Affordability Act...
June 11, 2014
Senator Warren's Bank of Students Emergency Loan Refinancing Act Provides Important Options for Refinancing Student Loans This week, the Senate will vote on Senator Elizabeth Warren's Bank of Students Emergency Loan Refinancing Act, which would allow borrowers to refinance student loans at lower rates. Representatives Miller and Tierney have also introduced a companion bill in the House. The Center for Responsible Lending joins a robust group of education, labor, student, and consumer organizations supporting the bill. In a statement issued today, Senior Policy Counsel Maura...
June 10, 2014
Yesterday, President Barack Obama held a White House briefing and signed a Presidential Memorandum calling for new refinancing options, expanding access to income-based repayment, better outreach to distressed borrowers, and more accountability for student loan servicers. Later this week, the Senate is scheduled to vote on Senator Warren's Bank on Students Emergency Loan Refinancing Act, which would allow borrowers to refinance federal and private student loans at lower rates. Representatives Miller and Tierney have also introduced a companion bill in the House. In a statement...
May 28, 2014
Today, the Center for Responsible Lending joins an extensive group of education, student, civil rights, consumer, veterans, and labor groups in calling for strong for-profit college regulations. Yesterday was the last day to file comments on regulation proposed by the Department of Education, called the "gainful employment rule." The gainful employment rule, proposed in March of this year, aims to create standards for trade, career, and for-profit institutions. "Far too many students enroll in for-profit institutions because of high-pressure and deceptive sales tactics, rather than...

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