Ask Your Senators to Confirm Cordray; News on Private Loans, Gainful Employment
Take Action - Urge Your Senators to Confirm Richard Cordray and Let the CFPB Do Its Job
The Senate is expected to vote soon on whether to allow Richard Cordray to be confirmed as director of the Consumer Financial Protection Bureau (CFPB). Since 2011, the CFPB has been working to help student loan borrowers and protect students and families from unfair and deceptive lending practices. In this economy, consumers need a strong advocate and real financial protections more than ever.
Ask your Senators TODAY to confirm Richard Cordray and oppose efforts to weaken the
Coalition Calls on CFPB to Require School Certification for Private Loans
Earlier this week, TICAS and 28 other organizations representing students, consumers, higher education institutions, faculty and staff, civil rights groups, and public policy organizations sent a letter to CFPB Director Corday. It urges the CFPB to help prevent unnecessarily risky and costly student borrowing by using its authority to require school certification for private education loans.
With federal subsidized student loan interest rates scheduled to double on July 1, we're concerned that without this action by the CFPB, more students will turn to private loans instead of safer federal loans. As the letter says:
"With private lenders currently marketing loans with variable rates starting as low as 2.25%, more students and families may mistakenly conclude that such loans are more affordable than federal loans with a fixed rate of 6.8%. Requiring school involvement now is also critical to prevent a resurgence of the reckless and deceptive private lending practices common before the recent financial crisis."
Big Thanks and Step Forward on Negotiated Rulemaking
Last month, we asked you to tell the Obama Administration to protect students and taxpayers from rip-off career education programs and unscrupulous schools in the U.S. Department of Education's upcoming negotiated rulemaking. Nearly 600 of you did: that's almost two-thirds of all the comments the Department received! Thanks for making your voices heard!
The Department has already responded by announcing it's moving ahead with a negotiated rulemaking on "gainful employment" this fall, as so many of you urged. This is a big step forward, but we'll need to keep the pressure on the Department to address the other urgent issues you raised: preventing schools from evading other laws designed to protect students and taxpayers, and providing relief for deceived and defrauded students.