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 DeVosElizabeth (Betsy) Dee DeVosThe Hill's 12:30 Report — Presented by MAPRx — Biden, Sanders to share stage at first DNC debate The Hill's 12:30 Report — Presented by MAPRx — Biden, Sanders to share stage at first DNC debate The Hill's Morning Report — Uproar after Trump's defense of foreign dirt on candidates 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 BrownOn The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project On The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project Maxine Waters calls on Facebook to halt cryptocurrency project MORE (Ohio) and Patty MurrayPatricia (Patty) Lynn MurrayOvernight Health Care: Poll finds most Americans misunderstand scope of 'Medicare for All' | Planned Parenthood chief readies for 2020 | Drugmakers' lawsuit ramps up fight with Trump Overnight Health Care: Poll finds most Americans misunderstand scope of 'Medicare for All' | Planned Parenthood chief readies for 2020 | Drugmakers' lawsuit ramps up fight with Trump Trump's health care focus puts GOP on edge MORE (Wash.) along with Reps. Maxine Waters (Calif.), Rep. Bobby ScottRobert (Bobby) Cortez ScottTop Trump health official warned against controversial ObamaCare changes in private memo Top Trump health official warned against controversial ObamaCare changes in private memo Centrist Democrats raise concerns over minimum wage push 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.

“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.