Rep. Takano Slams Proposal to Shield Unethical Student-Loan Debt Collectors from Accountability

Washington, D.C. – Rep. Mark Takano (D-Calif.) released the following statement in response to reports that the Department of Education is moving forward with plans to issue a rule blocking states from regulating unethical student-loan debt collectors.

“When a company deceives a student about their student loan options, it puts that student’s entire financial and educational future in jeopardy. That is why dozens of states, including my home state of California, have taken action to protect students from unethical companies that mislead and exploit student borrowers. It is also why 25 state attorneys general sent a bipartisan letter calling on the Secretary DeVos not to move forward with this proposal.

“It is bad enough that the Department of Education does not accept its own responsibility to protect students from companies that prey on their ambition, but it is unconscionable for the administration to also prevent states from taking action. From rolling back important consumer protections - like the Borrowers Defense to Repayment rule and the Gainful Employment rule – to now reportedly blocking state regulations, the administration has clearly articulated its intention to prioritize corporate profits over students.

“Many of the students who will be affected by this proposal have served our nation in uniform, many are minorities from low-income communities, many have families they want to support and dreams they want to realize. Instead of representing these students, the Department of Education is once again betraying them.”

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