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It wasn’t too long ago that the Consumer Financial Protection Bureau (CFPB) was empowered by Congress to take on colleges and student loan servicers like veritable financial super heroes. And they’re not resting on their laurels – they’re rapidly evolving into the tough cops on the student loan block, most recently by filing a lawsuit against private for-profit college franchise ITT Tech accusing them of predatory lending.
If you’ve got a TV, no doubt you’ve seen their ads promising to change your life by giving you a world-class education and incredible job opportunities. Even if this was the typical outcome, the costs to attend are prohibitive. Bachelor’s degrees from ITT can cost $88,000 and Associate’s an incredible $44,000. Pricing your educational programs this high is objectionable, but not legally actionable. But it’s how ITT urged students to finance these astronomical tuition rates that’s the subject of the lawsuit.
Acting Secretary of Education John B. King Jr. stated, “When Americans invest their time, money and effort to gain new skills, they have a right to expect they’ll actually get an education that leads to a better life for them and their families. Schools looking to cheat students and taxpayers will be held accountable.”
With approximately 50 people to start, the new unit will be led by former Federal Trade Commission enforcement attorney, Robert Kaye. Staff will move from other existing department offices, and new personnel will be added. The reorganization will be funded through existing resources for now.
The enforcement unit will include four divisions:
- Investigations Group – to identify potential high-risk activities across educational institutions and protect federal funding.
- Borrower Defense Group – to provide legal support and claim analysis.
- The Administrative Actions and Appeals Service Group (AAASG) – to execute administrative actions and resolve appeals.
- Clery Group – to ensure institutional compliance with disclosing campus crime statistics for colleges and universities that participate in federal financial aid programs.
President Barack Obama is asking for over $13 million as part of his 2017 budget. This federal money will strengthen enforcement and oversight of government-backed grants and loans.
The Student Aid Enforcement Unit will work to monitor organizations like Corinthian Colleges, so more students are not faced with similar situations. The department recently ended federal loans and grants to some beauty and computer schools.
STUDENT LOAN FORGIVENESS
Student loan debt has reached an all-time high, and according to the Consumer Financial Protection Bureau, the total amounts to around $1.2 trillion. Goodbye Loans can help determine if you qualify for student loan forgiveness.
Goodbye Loans matches thousands of graduates with federal programs that are offered by The Department of Education to consolidate and lower their current Federal student loans. We help you take advantage of the latest regulations put in place by Congress and President Obama and potentially save thousands of dollars. Debt is hard to ignore. When you’re staring down a ballooning credit card balance and fending off insistent phone calls from angry creditors, it can be an all-consuming enemy.