Schatz Statement on CFPB Move to Shut Down Student Loan Investigations
WASHINGTON – U.S. Senator Brian Schatz (D-Hawai‘i) released the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) plan to dismantle its Office for Students and Young Consumers, the only office in the federal government dedicated to protecting student loan borrowers from bad actors in the financial sector. The move comes on the heels of Education Secretary Betsy DeVos’ effort to stop states from enforcing consumer protection laws against federal student loan servicers.
“This move is a total dereliction of duties by the CFPB,” Senator Schatz said. “People with student loans need help. They’re already overburdened because college isn’t affordable, and then they have to deal with companies that misplace paperwork, misapply loan payments, or purposefully omit information. And instead of protecting borrowers, this administration is protecting the bad actors. People deserve better.”