“Corinthian Colleges made many promises to its students – promises of a good education and job opportunities on the other side – but behind the slogans was an institution that churned out big profits by targeting unsuspecting, low-income students with predatory recruitment and lending practices. “
“Given the extensive evidence of widespread fraud at Corinthian Colleges, we believe all current and former students deserve federal loan discharges. We are particularly concerned that students whose entitlement to federal loan discharges is crystal clear – those recently enrolled in the 30 Corinthian campuses that closed on Monday – are being given incomplete, incorrect, and harmful information about their options from Education Department staff as well as from schools that do not have these students’ best interests in mind. “
“AFR urges swift adoption of these changes, along with further measures to deal with the burden of student loan debt. The complaint system is one of a number of places we think steps can and should be taken ahead of the deadlines laid out by the Administration. While the Department is establishing a full system for dealing with complaints, which should be comprehensive, it should partner with the CFPB so that borrowers can immediately use that process to submit complaints about federal student loans (as they already can about private loans).”
“Against the backdrop of $1.2 trillion dollars in outstanding student loan debt that is currently dragging on individual borrowers and the economy more broadly, it is imperative that our federal lawmakers take steps to change banking and financial firm practices that contribute to that debt burden.” – joint letter to Senate Committee on Banking, Housing, and Urban Affairs.
40 million Americans currently owe some $1.2 trillion in student loan debt, which is making it hard for people to buy cars, homes, and even daily necessities. In one recent survey, 29 percent of borrowers said that student loans had caused them to delay getting married…
So this is a problem that fully deserves the double-barreled attention it is getting from the Senate. And more: it deserves meaningful action from regulators and legislators alike.
“We strongly support the Department of Education’s efforts to keep federal funds from being used to support career education companies that routinely fail to deliver on their promises, leaving students with unmanageable debt. We urge you to stand by the thrust of the regulations the Department proposed in March, and to bolster those regulations in several key ways.”
Read the pdf of our comment letter to the CFPB regarding private student loans here. January 17, 2012 Ms. Monica Jackson Office of the Executive Secretary Consumer Financial Protection Bureau 1500 Pennsylvania Ave., NW (Attn: 1801 L
Obama To The Rescue On Federal Student Loans, But What About Private Loans? – Eva Pereira (Forbes)
“The new Consumer Financial Protection Bureau (CFPB) aims to make the education lending market much more transparent with its KnowBeforeYouOwe project, but for those already knee deep private debt, there is little recourse. Several distressed borrowers shared their private loan struggles on a recent call organized by the Americans for Financial Reform, a consumer rights coalition.”
AFR in the News: Private Student Loan Debts Highlight Need for Fully Operational CFPB The Institute for College Access & Success and Americans for Financial Reform hosted a conference call with reporters and bloggers on Tuesday, October 25th to discuss private student loan debt and
View the PDF Version Here January 26, 2011 The Honorable Barack Obama President of the United States 1600 Pennsylvania Avenue Washington, DC 20500 Dear Mr. President: Thank you for your leadership to make college more affordable in order to expand opportunity and strengthen our economy.