Department of Education to End Agreement with CFPB

On September 1, Education Secretary Betsy DeVos announced that her Department will end four and six-year-old agreements with the Consumer Financial Protection Bureau (CFPB), by which the two entities promised to work together to address student loan fraud.

DeVos’ Department of Education argued that the CFPB overstepped its authority by addressing Title IV student loan complaints instead of directing those issues to the Department of Education.

Kathleen Smith, acting assistant secretary for postsecondary education, and A. Wayne Johnson, chief operating officer for federal student aid, said that the Department “takes exception to the CFPB unilaterally expanding its oversight role to include the Department’s contracted federal loan servicers,” and called it “characteristic of an overreaching and unaccountable agency.”

Smith and Johnson added, “The CFPB is using the Department’s data to expand its jurisdiction into areas that Congress never envisioned.”

Read more at The Hill.

Copyright for Image: Photographer, Stock Photo, License Summary.

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