March 9, 2021 | WASHINGTON, DC — Student Borrower Protection Center Executive Director Seth Frotman released the following statement in support of today’s demand by a bipartisan coalition of 11 state financial regulators that the U.S. Department of Education immediately reverse policies that block oversight of the student loan industry:
“Under Betsy DeVos, the Department of Education engaged in an unprecedented campaign to obstruct federal and state consumer protection officials’ efforts to oversee the student loan industry. Regrettably, the reckless approach pursued by the Trump Administration has remained in effect into the first months of Joe Biden’s presidency. Until action is taken, servicing breakdowns, predatory practices, and unnecessary hardship will continue unchecked as borrowers struggle during COVID. The Biden Administration must immediately reverse course, allowing state and federal officials to hold the student loan industry accountable and protect borrowers.”
Millions of Americans with student debt, including teachers, military families, borrowers with disabilities, and older adults, continue to be cheated by student loan companies. These companies pad their profits while adding billions of dollars in additional and unnecessary student debt onto the backs of struggling borrowers.
Over the last four years, Education Secretary Betsy DeVos has shielded the student loan industry from the consequences of these widespread abuses. The Administration has repeatedly sided with some of the largest financial companies in America, rather than supporting efforts by law enforcement officials and regulators to protect borrowers and hold the industry to account.
In October 2020, the SBPC released a report outlining a series of immediate actions that could be taken by a new Administration to reverse the Trump Administration’s obstruction.