A Big Win for Student Borrowers - Cordray Confirmed as CFPB Director | Other News
Thank You for Taking Action - Richard Cordray Confirmed as Director of the CFPB
After a two-year stalemate, yesterday the Senate confirmed Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB) in a 66-34 vote. Despite repeated efforts to block his nomination and weaken this critically important agency, Cordray will now lead it for the next five years. This is a huge win for students and their families, and your voices made a difference! When we asked you to urge your Senators to confirm Cordray and let the CFPB do its job, nearly 1,400 of you took action. Thank you! Under Cordray's continued leadership, we can count on the CFPB to help student loan borrowers and protect students and families from unfair and deceptive practices.
CFPB Takes on Debt Collectors
Just a week ago, the CFPB announced
that it would hold debt collectors accountable for unfair, deceptive, or
abusive practices. At the same time, it started taking consumer complaints
about debt collection problems with federal and private student loans as well as
other types of debt, and it published several "action letters" for consumers to consider using in corresponding with debt collectors.
Congress Continues to Debate Student Loan Interest Rates
On July 10, a minority in the Senate succeeded in blocking legislation to reverse the doubling of interest rates on subsidized Stafford loans from 3.4% to 6.8%. However, the debate continues: policymakers are still trying to hammer out a long-term deal. There's a real risk that it would be a step backwards for students compared to the status quo. As we made very clear in a joint statement with other student, youth, consumer, and education groups, a bad permanent deal would be even worse for students, families, and the economy than letting rates stay where they are right now.Read the statement