FOR IMMEDIATE RELEASE:
May 9th, 2018
CONTACT: Natalia Abrams
Statement: Mick Mulvaney’s Decision to Dismantle CFPB’s ‘Office of Students’ Harms Efforts to Protect Student Loan Borrowers
Student Debt Crisis strongly opposes the decision by Consumer Financial Protection Bureau (CFPB) Acting Director Mick Mulvaney to eliminate the agency’s student protection office.
Overseeing predatory student loan companies, holding for-profit colleges accountable, and shutting down debt-relief scams are vital components of the CFPB’s core mission. Mr. Mulvaney’s decision to abandon these efforts, by dismantling the Office of Students, will put millions of Americans at risk.
“Who will police student loan companies and for-profit colleges now? Americans are defaulting on their student loans at the highest rate in history. Yet, this plan undermines the only federal advocate committed to protecting borrowers.”
“This comes at a time when we are facing disastrous policy rollbacks at the Department of Education as well. Our supporters fear there is no longer a consumer protection agency for student loan borrowers.”
– Natalia Abrams, Student Debt Crisis Executive Director
We are discouraged that the CFPB Office of Students’ important work will no longer continue in its current form. Since its creation, the CFPB has recovered more than $750 million in funds for people who were defrauded by their lenders and servicers.
The agency also took enforcement action against the worst actors in the industry, including Sallie Mae, Navient, and Corinthian Colleges. It is crucial that consumer protection efforts for students and borrowers are strengthened and expanded, not weakened.
Over 41,000 Student Debt Crisis supporters have already taken action to urge Congress to oppose any plan that diminishes the CFPB’s ability to protect student loan borrowers.
Student Debt Crisis is a nationwide advocacy group with over 1,000,000 supporters calling for fundamental reforms to student loan policies.