May 3, 2021 | WASHINGTON, DC — Student Borrower Protection Center Executive Director Seth Frotman released the following statement in response to today’s announcement that former CFPB Director Richard Cordray has been chosen to lead the Department of Education’s Office of Federal Student Aid:
“Richard Cordray has an unparalleled record taking on the most powerful interests in the student finance and higher education sectors—standing up for students at predatory for-profit schools and demanding justice for decades of abuses by student loan companies. Appointing Cordray to lead the Department of Education’s office of Federal Student Aid is a great step, showing that this Administration is serious about doing what’s necessary to protect borrowers and address the student debt crisis. Cordray has spent his career fighting for consumers, and brings an immense amount of experience and knowledge of what must be done to confront the systemic problems in the student loan system. Borrowers and their families now have someone who will be their champion within FSA, ED, and throughout the Administration.”
Background
For seven years, Richard Cordray’s Consumer Financial Protection Bureau stood up for student loan borrowers and young consumers by:
- Returning over $750 million to student loan borrowers and halting predatory practices that harmed millions.
- Cracking down on predatory for-profit schools including ITT Tech, Corinthian Colleges, and Bridgepoint Education.
- Holding companies servicing student loans accountable for harmful and abusive practices. This included a lawsuit filed against Navient, the nation’s largest student loan company as well as enforcement actions that halted illegal servicing practices at Wells Fargo, Discover, and Citibank.
- Highlighting the far reaching effects of student debt, such as the burden of student debt on military families, the often overlooked crisis of older Americans and student debt, the impact on communities of color, and more.