In the News
“It’s time to quit the political games and allow law enforcement officials at the federal level and the state level to demand justice for student loan borrowers. And the Department of Education, which clearly has no desire to do so, should get out of the way.”
Now NPR has learned that the nation’s most powerful consumer watchdog, the Consumer Financial Protection Bureau, launched an effort to fix problems but the Trump administration blocked it from trying to help.
According to the Student Borrower Protection Center, a consumer advocacy group, the memo shows that Navient “orchestrated a predatory scheme to place borrowers in high-cost repayment options to boost corporate profits.” The Public Service Loan Forgiveness Program was supposed to erase the remaining federal loan balance after 10 years for borrowers who devoted their careers to serving others.
November 6, 2019 | Student Borrower Protection Center Announces New Hires, Organization Growth
The Student Borrower Protection Center (SBPC) is announcing the addition of six new team members to support the organization’s work to end the student debt crisis. New staff include: Tamara Cesaretti as Counsel; Rebecca Maurer as Counsel and Program Manager for the Student Loan Law Initiative; Kat Welbeck as Counsel; Moira Vahey as Communications Director; Walter Suskind as Deputy Communications Director; and Ben Kaufman as Research and Policy Analyst.
Today, New York Attorney General Tish James sued student loan giant Pennsylvania Higher Education Assistance Agency, also known as PHEAA or FedLoan Servicing, for cheating teachers, nurses and other public service workers out of their right to loan forgiveness. In the face of mounting lawsuits and growing evidence of widespread predatory practices across the student loan industry, the organizations co-sponsoring AB 376, the California Student Borrower Bill of Rights, have renewed their call to the legislature to pass this critical borrower protection legislation.
Newly unsealed court documents reveal executives at the nation’s largest student loan company orchestrated a predatory scheme to place borrowers in high-cost repayment options to boost corporate profits. Reliance on these high-cost options, known as “forbearances,” resulted in more than $4 billion in unnecessary interest charges passed on to borrowers, according to lawsuits filed by federal and state enforcement officials.
Testimony of Seth Frotman at the House Financial Services Committee hearing: A $1.5 Trillion Crisis: Protecting Student Borrowers and Holding Student Loan Servicers Accountable
Keynote remarks of Seth Frotman in conjunction with the release of the San Francisco Federal Reserve Bank’s paper, At What Cost?: Student Loan Debt in the Bay Area.
Testimony of Seth Frotman at the California Assembly Committee on Banking and Finance hearing: An Examination of the CFPB under the current Federal Administration and Options for California to Protect its Consumers.