Majorities of American voters across parties believe that the student debt burden – now at $1.5 trillion – represents a crisis for the country, according to a new poll. The survey also found widespread concern with efforts by Mick Mulvaney, the Trump official installed at the head of the Consumer Financial Protection Bureau, to gut the agency’s student lending office.
A new polling memo from Americans for Financial Reform and the Center for Responsible Lending documents the widespread agreement among American voters that the student debt burden, now at $1.5 trillion, is a crisis.
The ability for states to enact laws governing how servicers may interact with borrowers, and the ability of state Attorneys General to file lawsuits against servicers for consumer abuses, are crucial accountability mechanisms that must continue. That the Department would attempt in any way to prevent these state level efforts to defend borrowers simply shows that under Betsy DeVos, it is servicers before students.
Americans for Financial Reform strongly condemns the decision by Secretary of Education Betsy DeVos to abandon the victims of predatory colleges by delaying the Borrower Defense rule. This is a slap in the face to defrauded Americans, and a stunning admission by the Department of Education that they intend to place wealthy for-profit college executives ahead of students striving for a better life.
AFR Statement: Secretary DeVos moves ED toward less accountability and worse service for student loan borrowers
Secretary’s DeVos’s actions to rescind three past Department of Education memos moves us away from true accountability, and creates dangers for the very student loan borrowers the Department is responsible for protecting.
“It is crucial that any nominee for Education Secretary of the Department of Education not only affirm the need to enforce existing rules that seek to protect both students and taxpayers from fraud, but also clearly articulate plans to rapidly pursue additional automatic group discharges. Betsy DeVos has done neither. Americans for Financial Reform urges the members of the Senate to reject Betsy DeVos’s nomination as Secretary of the Department of Education.”