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The Trump administration signaled Wednesday that it intends to pull back on investigating potential abuses by companies in the $1.5 trillion student loan market. The Consumer Financial Protection Bureau will shutter its student lending office, according to a bureau-wide memo written by its acting director, Mick Mulvaney.
Education Secretary Betsey DeVos spoke about changing career and education needs on Sept. 18. "Washington should not be dictating when and how students can learn," she said.
The Education Department is pursuing debt collection - rather than debt relief - for nearly 80,000 former students of Corinthian Colleges, despite federal and state findings that the now-defunct for-profit chain defrauded students, Sen. Elizabeth Warren said in a blistering critique of the administration's actions. The Massachusetts Democrat reported the findings of a staff investigation in a letter Thursday to Education Secretary John B. King Jr. "It is unconscionable that instead of helping these borrowers, vast numbers of Corinthian victims are currently being hounded by the department's debt collectors," she said.
The Obama administration has agreed to forgive $171 million in student debt held by former students of the defunct Corinthian Colleges Inc., the toll of a for-profit school boom that is likely to grow as the government continues to investigate schools accused of fraud. The report released Wednesday by the Education Department provides the most detailed accounting yet of the taxpayer cost of the collapse of Corinthian, once among the nation's largest for-profit college chains.