Statement from from the Project on Predatory Student Lending on CFPB’s New Report on Student Loan Servicers
“The student loan market is ripe with abuses, has failed borrowers for decades, and cannot be ignored.”
BOSTON (December 16, 2024) – The Project on Predatory Student Lending (PPSL), the leading legal organization representing student borrowers against predatory for-profit colleges, issued the following statement on the Consumer Financial Protection Bureau (CFPB) report on private student loan servicers.
PPSL has been working to uncover and draw attention to these issues throughout the year, including:
Supporting Senator Warren and members of Congress in a letter to the CFPB and FTC last week urging an investigation into Navient, based in part on PPSL’s memo in response to Navient earlier this fall
Highlighting a new Navient School Misconduct Discharge Application and making the information, and Navient’s arbitrary and inconsistent implementation of it, public for the first time.
Suing MOHELA on its failure to implement the discharges of fraudulent student loans as ordered by the Department of Education.
Statement from Eileen Connor, President and Executive Director of the Project on Predatory Student Lending:
"This report highlights the many repeated, unlawful failures by student loan lenders and servicers who refuse to do their jobs. Lenders like Navient have made billions of dollars pushing subprime private student loans on unsuspecting students as part of their conspiracy with disgraced, behemoth for-profit colleges like ITT, Art Institutes, and Corinthian, and then refuse to provide relief to the borrowers they participated in harming. The student loan market is ripe with abuses, has failed borrowers for decades, and cannot be ignored. We urge the CFPB to continue to hold lenders and servicers accountable to students, taxpayers, and the law – for both federal and privately-held student loans.”
Although private student loan borrowers do have protections in their contracts against the repayment of loans based on school or lender misconduct, lenders have failed to honor borrower rights on private student loans by failing to offer a clear process to relief. PPSL has worked alongside borrowers for years to create a pathway for private student loan borrowers to receive relief, including by filing several lawsuits against Navient on behalf of individual borrowers and highlighting the issue to regulators.
About the Project on Predatory Student Lending
The Project on Predatory Student Lending (PPSL) is the leading legal organization representing student borrowers against predatory for-profit colleges and the policies that enable institutions to exploit and cheat students. PPSL uses bold, strategic litigation and advocacy to demand accountability in the higher education space and influence policy solutions to create a more just and affordable education system. PPSL represents more than one million student borrowers and its work has resulted in cancellation of more than $22 billion of fraudulent student loan debt.
