Published: April 2017

Advocates call on states to fill void left by Dept. of Education

Consumer Action joins a coalition of labor, civil rights and consumer organizations is urging state regulators and law enforcement agencies to step up their oversight of student loan servicers following Education Secretary Betsy DeVos’ decision to rescind Obama-era policies that were aimed at protecting borrowers.

The coalition letter, which was sent to 50 state attorneys general and other state regulators, urged state regulators and the CFPB to fill the void left by the Trump administration’s repeal of the student loan servicing guidance, which will impact more than 40 million student loan borrowers around the country. We asked state officials to commit to an industry-wide investigation of loan servicing and sue companies that are breaking the law. The letter also seeks enforceable nationwide servicing standards from the CFPB.

 

Lead Organization

American Federation of Teachers (AFT)

Other Organizations

American Association of University Professors | American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) | American Federation of Teachers | Americans for Financial Reform | Center for Responsible Lending | Communication Workers of America | Consumer Action | Consumer Federation of America | Consumers Union | Demos | Generation Progress | Higher Ed, Not Debt | International Federation of Professional and Technical Engineers (IFTPE) | NAACP | National Council of La Raza | National Education Association | Public Interest Research Group (PIRG) | Service Employees International Union | U.S. Student Association

More Information

For more information, visit AFT's website.

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Advocates call on states to fill void left by Dept. of Education   (StateAGletters.pdf)