Bonamici Stands Up for Student Loan Borrowers, State Consumer Protection Laws
WASHINGTON, DC [03/09/18] – Today Congresswoman Suzanne Bonamici, a leader on the House Education and the Workforce Committee and a former consumer protection attorney, issued the following statement after the Department of Education announced its plans to block states from regulating student loan servicers and debt collectors:
"It is unacceptable that Education Secretary DeVos and the Department of Education are trying to interfere with the rights of states to protect student loan borrowers from fraud and abuse. This action taken by the Secretary and the Department indicates a willingness to weaken consumer protections and instead favor an industry with a history of abuse and questionable practices. The Education Secretary and Department cannot simply declare that state laws do not apply to loan servicers and debt collectors.
"State investigations of abuse and illegal practices in the student loan industry have led to millions of dollars in loan forgiveness for student loan borrowers. The Department of Education should be working to enhance and enforce consumer protections for student loan borrowers, not shielding student loan companies accused of ripping off students and families struggling under the weight of student loan debt.
“A bipartisan group of 25 state attorneys general sent a letter calling on Education Secretary DeVos to respect state oversight and enforcement of the student loan industry. I urge Secretary DeVos to abandon this irresponsible effort and to stop putting the interests of the student loan industry over students and families.”
Bonamici is a steadfast advocate for student loan borrowers and has called for stronger consumer protections.