Murray Statement on Secretary of Education Betsy DeVos’ Decision to Scrap Student Loan Service Reforms
(Washington, D.C.) – Senator Patty Murray (D-WA), Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, today issued the following statement on the Secretary of Education’s decision to halt Obama-era reforms that included new consumer protections for borrowers and improvements to the quality of federal loan servicing.
“I am very disappointed to see President Trump and Secretary DeVos continue to put the financial interests of student loan companies ahead of borrowers and working families. The latest move by the Trump Administration to roll back protections and long-overdue improvements to customer service for more than 40 million student loan borrowers opens the door for corporations looking to make a quick buck on the backs of students. I urge Secretary DeVos to reverse course, and I will be fighting hard to make sure that student loan servicers are putting the interests of borrowers before their profits.”
In July 2016, Senators Murray and Warren led other Senate Democrats in a letter urging the Department to reform the student loan servicing process with the goal of better assisting borrowers in managing their loans, holding servicers accountable, and setting financial incentives that will best support the interest of students. Three critical policy memos to guide these common-sense improvements in the upcoming competition for federally-funded loan servicing contracts were rescinded yesterday by Secretary DeVos.
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