Congressional Chairs Concerned About State of Student Loan Industry Seek Answers from CFPB, Department of Education and Student Loan Servicers

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Last week, Congressional representatives Maxine Waters, D-CA, Bobby Scott, D-VA, and Elijah Cummings, D-MD, as chairs of committees with oversight responsibility for the student loan servicing market, sent letters to CFPB Director Kathleen Kraninger and Department of Education Secretary Betsy DeVos about their concerns with the current state of the student loan industry. The letters arose out of the representatives’ concerns that the agencies have not taken sufficient steps to protect student loan borrowers from alleged predatory tactics. The representatives requested that the CFPB and Department of Education provide extensive information and documents chronicling their efforts to protect consumers from unlawful student loan servicing practices. The representatives sent similar letters to certain student loan servicers, requesting detailed information about their respective operations, including their policies and procedures and training materials, as well as their records related to areas such as annual revenue and executive and employee compensation.

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