As NPR reported in late 2018, "Seeking to 'evaluate the independence and effectiveness' of the federal Consumer Financial Protection Bureau's student loan office, 15 members of the Senate Democratic Caucus sent a terse letter Thursday evening to Mick Mulvaney, the CFPB's acting director."
Here, thousands of college students are potentially stuck with student loan debt with no receipt of educational services.
The student loan industry is fraught with oversight concerns...
"The senators, who include Sherrod Brown, the ranking member of the Senate banking committee, and Patty Murray, the ranking member of the Senate education committee, closed with a list of eight questions, many raised by Frotman's resignation, and a request for fast answers. They include:
- How many supervisory examinations of large student loan servicing companies has the CFPB performed in the last 10 months?
- How many enforcement actions have career staff recommended be undertaken against student loan servicers?
- Have any of these recommendations been acted upon to date?
Senators also asked Mulvaney whether the CFPB suppressed a report, as Frotman alleged, that found evidence of banks charging dubious account fees to college students. If true, the letter says, Mulvaney should provide the report and all documents related to it."
Almost immediately, the organization discovered the schools were in worse shape than expected, with aging facilities and outdated technology. The universities “were, on the whole, failing without hope for redemption,” the receiver wrote in a court filing last month. Dream Center had anticipated a $30 million profit in its first year, Mr. Barton wrote in a recent legal filing. Instead, it was facing a $38 million loss. And Dream Center showed little inclination to curb the tactics that got Education Management in trouble, like misleading students about their employment prospects. The executives it installed cultivated a high-pressure culture in which profit surpassed all other concerns, according to a report filed last year by Thomas J. Perrelli, the court-appointed monitor overseeing the schools’ compliance with their state settlements.