Cordray helped deliver debt relief to millions of people; Next FSA chief must prioritize consumer protection and hold private contractors accountable.
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SBPC and SLLI host a virtual event featuring new research on the impact of student debt relief and borrowers’ experiences with the PSLF program.
Consent order is an affirmation of states authority to supervise the private companies that service student loans.
Lawsuits look to right-wing judges to overturn final rule, which frees millions from coercive contracts like Training Repayment Agreement Provisions (Traps) and is expected to generate more than $400 billion in increased wages.
The FTC’s decision to ban de facto non-competes, like stay-or-pay contracts and TRAPs, will empower millions of workers.
April 23, 2024, the FTC issued a final rule that bans the use of traditional and de facto non-compete agreements, which includes stay-or-pay contracts. See our fact sheet on TRAPs and more.
Austen Allred, pioneering “Income Share Agreement” loan shark and founder of for-profit coding bootcamp BloomTech (formerly “Lambda School”) is named in federal enforcement action; company and founder must cancel debt owed by some current and former students.
Biden Administration announces revised guidance, overturning a 32-year-old policy prohibiting incarcerated student loan borrowers from consolidating their student loans.
Proposal addressing hardship posed by student debt is expected to follow.
A new consumer protection lawsuit in Maine illustrates the risks to students and challenges for the higher education sector, and serves as a call to action for regulators.
The hearing follows an explosive investigative report by the Student Borrower Protection Center (SBPC) and the American Federation of Teachers alleging four in 10 people with a loan serviced by MOHELA have been impacted by servicing failures.
Mike Pierce of the Student Borrower Protection Center agreed that more accountability is needed, noting the federal government relies heavily on private contractors to service federal loans.
Student loan expert and borrower advocate Persis Yu will offer testimony; MOHELA CEO Scott Giles declines to publicly testify.
Re: MOHELA’s Performance as a Student Loan Servicer
Today, President Biden offered his Administration’s first detailed overview of the sweeping student debt relief package that the U.S. Department of Education will unveil in the coming months.
ED’s assertion that borrowers will deal directly with the federal government is alarmingly inaccurate and begs numerous questions that must be answered immediately.
Today, SBPC and partners sent an urgent letter to the CFPB and the Department of Education warning about the potential collapse of ed tech giant 2U, inc.
20 organizations wrote the FTC to highlight new research documenting the growing use of TRAPs, and called for the FTC to ban their use in the final non-compete rule.
Advocates to MOHELA: “Tuuth is on our side;” AFT and SBPC petition Education Department Inspector General to audit MOHELA’s performance under its federal contracts.