The CFPB’s new student loan ombudsman

The CFPB’s new student loan ombudsman

With assist from Bianca Quilantan

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— The Trump administration has tapped a student loan trade government to function the CFPB’s prime student loan official — a transfer that is drawing the ire of client advocates.

— As a part of a crackdown on unlawful immigration, the White House reportedly thought-about methods to dam migrant kids from attending public colleges.

— The head of Puerto Rico’s lecturers union is looking it quits amid questions on potential conflicts of curiosity along with her husband’s tutoring enterprise and ongoing political turmoil on the island.

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NEW CFPB STUDENT LOAN CHIEF COMES FROM MAJOR STUDENT LOAN SERVICER: The Trump administration has appointed an government at one of many nation’s largest student loan servicing companies to function the brand new prime student loan official on the CFPB.

— Robert Cameron will turn out to be the CFPB’s subsequent non-public training loan ombudsman, the bureau introduced Friday. Cameron till lately was deputy chief counsel and vice chairman of enterprise compliance on the Pennsylvania Higher Education Assistance Authority, which operates FedLoan Servicing.

The CFPB supervises and regulates giant student loan servicers like PHEAA underneath the Dodd-Frank Act. While he was at PHEAA, Cameron “oversaw compliance activities” and was accountable for ensuring the group complied “with quite a few federal and state legal guidelines, together with the Dodd-Frank Act,” the CFPB said in a press release.

Cameron is taking over a unit at the CFPB that was sharply critical of his former employer in a 2017 report on the Public Service Loan Forgiveness program, which PHEAA exclusively administers on behalf of the Education Department. The CFPB criticized the loan servicer for bungling payments of borrowers who were supposed to be on track for loan forgiveness.

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— Cameron fills the vacancy left last year by the departure of Seth Frotman, who resigned in protest of what he said was the Trump administration’s efforts to undermine the bureau’s oversight of student loan companies and for-profit colleges.

Frotman, who now runs a consumer advocacy group, said in a statement it was “outrageous that an executive from the student loan company that has cheated students and taxpayers — and is at the center of every major industry scandal over the past decade — is now in charge of protecting borrowers’ rights.”

Debbie Goldstein, executive vice president at the Center for Responsible Lending, said the appointment signals that the federal government “is not interested in the nation’s 44 million student loan borrowers or their families.” She added: “In the absence of real federal oversight, states have no choice but to step up and protect student loan borrowers.”

The CFPB emphasised that Cameron can be engaged on non-public student loan points, signaling a retreat from the Obama administration’s follow of getting the particular person in his function work on each non-public and federal student loans, that are held by the overwhelming majority of debtors. The Dodd-Frank Act describes the function because the “non-public training loan ombudsman.”

Richard Hunt, president of the Consumer Bankers Association, which represents a few of the nation’s non-public student lenders, praised the appointment. But he additionally mentioned he hopes Cameron nonetheless focuses on federal student loans: “While the CFPB notes Mr. Cameron’s title is Private Education Loan Ombudsman, it is clear the federal student loan program is not working and he should also focus on implementing needed improvements there.”

Cameron mentioned in a press release to POLITICO on Sunday: “As a dedicated public servant … I’m confident that I can contribute to achieving the mission of the Private Student Loan Ombudsman. In all of my work, my commitment has always been to serve the American people and I look forward to continuing that mission at the Bureau.”

The CFPB was a frequent critic of the Education Department’s student loan servicers in the course of the Obama administration and till the departure of CFPB Director Richard Cordray in November 2017. The Education Department terminated information-sharing agreements with the company over considerations by Trump administration officers that the bureau was overstepping its authority.

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Angela Morabito, an Education Department spokesperson, mentioned the company “was not involved” within the course of of choosing a brand new CFPB student loan chief. A CFPB spokesperson did not reply questions concerning the appointment.

REPORT: WHITE HOUSE CONSIDERED BLOCKING MIGRANT CHILDREN FROM SCHOOLS: Some White House aides, together with senior adviser Stephen Miller, have thought-about methods to stop undocumented immigrant kids from attending public colleges, Bloomberg reported over the weekend. Citing a number of folks aware of the matter, Bloomberg reported that Miller “repeatedly” pressed Cabinet officers and different White House aides to give you a approach to limit undocumented immigrants’ entry to public colleges.

— From the report: Part of the White House effort “included consideration last year of a guidance memo issued by the Education Department that would tell states they had the option to refuse students with an undocumented status to attend public schools from kindergarten through high school. A memo was never issued.”

— Education Department spokesperson Liz Hill instructed Bloomberg: “The memo wasn’t issued because the secretary would never consider it.” The information group reported that the administration finally deserted the trouble, which might have run counter to the Supreme Court’s 1982 ruling in Plyler v. Doe that ensures entry to public colleges for students no matter immigration standing.

— Flashback: The Education and Justice departments wrote in a joint letter to Congress in November 2017 that the Trump administration was “fully committed to the continued implementation” of Plyler v. Doe.

PUERTO RICO TEACHERS UNION PRESIDENT RESIGNS: The president of Puerto Rico’s largest lecturers union introduced she’s resigning from her function, El Nuevo Día reported Sunday. Aida Díaz had led the Asociación de Maestros de Puerto Rico for 17 years. Like different union leaders on the island, she was a vocal a part of the current effort to oust former Gov. Ricardo Rosselló. She additionally fought the closures of a whole lot of public colleges, which accelerated within the wake Hurricane Maria.

The resignation comes after it was reported that her husband obtained almost $5 million in federal training grant funding since 2010.

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Her husband obtained funding underneath former Education Secretary Julia Keleher, who was accused of collaborating in a fraud scheme to learn contractors and has since resigned. According to El Nuevo Día, $669,000 in contracts had been awarded, equal to 14 p.c of the overall.

Dias instructed El Nuevo Día that she was retiring for household causes, and that her husband did not get wealthy from the contract. She mentioned there “isn’t a single conflict.”

Randi Weingarten, president of the American Federation of Teachers, referred to as her resignation “a sad moment” in a press release. “No one has fought harder or been a stronger advocate than Díaz for public education, for teachers, and for providing children with the opportunity to live up to their God-given potential,” Weingarten mentioned.

FORMER TOP EDUCATION DEPARTMENT LAWYER IS A TRUMP JUDICIAL NOMINEE: President Donald Trump final week nominated Steven Menashi, the previous performing common counsel of the Education Department, to a seat on the 2nd Circuit Court of Appeals. Menashi served because the Education Department’s prime lawyer in the beginning of the Trump administration earlier than transferring over to the White House counsel’s workplace.

At the Education Department, Menashi was concerned in Education Secretary Betsy DeVos’ efforts to swiftly delay Obama-era guidelines, a few of which — such because the borrower protection to reimbursement package deal of laws — had been later struck down in courtroom.

His nomination has already drawn swift criticism on the left. MSNBC’s Rachel Maddow devoted a phase on her present final week to Menashi’s previous writing on “ethnonationalism,” which Maddow described as “a high-brow argument for racial purity.” Watch right here.

Ed Whalen, writing within the National Review, pushed again at that criticism. He wrote Menashi’s evaluation was that “all people, irrespective of race or narrower concepts of ethnicity, who see themselves as part of the American national community do share an ethnonational identity.” Read it right here.

— Kentucky finds 1,000 lecturers violated regulation throughout ‘sickouts’: The Associated Press.

— Maryland Gov. Larry Hogan says he gained’t help huge tax hikes for main training funding plan: The Associated Press.

— An enormous constitution college wrestle in Pennsylvania has been galvanized by a Democratic governor: Education Week.

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