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Senate Democrats Elizabeth Warren and Sherrod Brown in a letter Monday encouraged the Consumer Financial Protection Bureau to maintain active oversight of loan servicers and other participants in the student loan industry.
The Democrats wrote the letter to the CFPB's director, Richard Cordray, in the wake of a Department of Education decision to terminate two agreements with the agency involving oversight of student loan programs. That decision, the senators said, was another example of Education Secretary Betsy DeVos acting in favor of private student loan companies at the expense of borrowers.
The department, in ending the deals with CFPB, said the agency had used complaint data to inappropriately expand its jurisdiction. It also said the agency hadn't turned over complaints in a timely manner. Cordray, however, said the notice terminating the agreements was the first time he had heard any concerns about the agreements from the department.
The senators asked Cordray to provide copies of communication between CFPB and the Department of Education -- as well as the White House and other federal agencies -- about the termination of the agreements. They also asked Cordray to describe how CFPB used the information-sharing agreements to address problems in federal student loan programs, how the agreements helped federal student loan borrowers and how the termination of the deals would affect sharing of information between the agency and the department.
