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Dems call on DeVos to work with CFPB to protect student borrowers

Dems call on DeVos to work with CFPB to protect student borrowers
© Greg Nash

Congressional Democrats are calling on Education Secretary Betsy DeVosBetsy DeVosBiden taps ex-consumer bureau chief to oversee student loans Tomorrow's special election in Texas is the Democrats' best House hope in 2021 Headhunters having hard time finding jobs for former Trump officials: report MORE to reverse course and reinstate agreements with the Consumer Financial Protection Bureau to protect student borrowers from student loan fraud.

Earlier this month, DeVos reportedly canceled agreements with the CFPB from 2011 and 2013, claiming the bureau had used Education Department data to expand its oversight role to include the department’s contracted federal loan servicers, overstepping its boundaries.

In a letter to DeVos on Thursday, Sens. Sherrod BrownSherrod Campbell BrownSherrod Brown calls Rand Paul 'kind of a lunatic' for not wearing mask On The Money: How demand is outstripping supply and hampering recovery | Montana pulls back jobless benefits | Yellen says higher rates may be necessary Senate Democrats announce B clean bus plan MORE (Ohio) and Patty MurrayPatricia (Patty) Lynn MurraySchumer 'exploring' passing immigration unilaterally if talks unravel Senate Democrats push Biden over raising refugee cap House passes bill to combat gender pay gap MORE (Wash.) along with Reps. Maxine Waters (Calif.), Rep. Bobby ScottRobert (Bobby) Cortez ScottDemocrats target Trump methane rule with Congressional Review Act Senators eye rollback of Trump methane rule with Congressional Review Act To Build Back Better, Biden must invest in modern apprenticeship system MORE (Va.) and 39 other members of Congress said revoking these agreements reflect “a fundamental misunderstanding” of the Education Department’s authority and that of other federal agencies.

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“While the Department does have authority to administer federal student loan programs, that authority is not exclusive and have been intentionally constrained by law due to the Department’s historical negligence in carrying out many of its oversight responsibilities over federal student loan services,” they wrote.

The lawmakers said multiple federal regulators and law enforcement agencies serve important roles overseeing companies that contract with the department to service federal student loans.

“Our country’s investment in affordable higher education provides individuals with the skills they need to participate in the 21st century economy,” the lawmakers wrote. “Unfortunately, the Department’s recent actions to abandon cooperation with the CFPB come during a time when it is also systematically rolling back rules meant to protect student and making numerous questionable personnel decisions.”

The Democrats asked DeVos to provide them with any communications the department has had with CFPB staff about data sharing concerns, any communications the department has had federal education loan servicers and any policy plans the Department has to increase oversight of federal student loan servicers.