Reauthorization of the HEA, One Bill at a Time
The Higher Education Act (HEA), as amended, has not been reauthorized since 2008. The House Committee on Education and the Workforce began the process on November 8, 2023, when it considered a bill that would require colleges and universities to report more foreign gifts or lose access to federal financial aid. The bill passed out of the Committee along a party-line vote. In an article appearing in the November 9, 2023 issue of “Inside Higher Education,” Chairwoman Virginia Foxx (R-NC) was reported to have said that more legislation is coming soon. The article suggested that there will be various bills that will focus on accreditation, expanding Pell Grants to short-term programs, free speech on campus, the student aid system, and accountability. While not ideal, it appears that the piecemeal approach is the only way to proceed.
Chairwoman Foxx, along with Michelle Steet (R-CA), co-sponsored the Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions (DETERRENT) Act, which amended Section 117 of the HEA, and currently requires colleges and universities to disclose foreign gifts and contracts totaling $250,000 or more twice a year. The DETERRENT Act would lower the threshold to $50,000 and require annual reporting.
Chairwoman Foxx said: “In an age of unconventional warfare, postsecondary education is an easy target for adversaries seeking to steal our national security secrets and undermine our unifying national principles…We deserve to know which countries are paying for influence on college campuses.”
A copy of the press release, which includes the text of the bill and a fact sheet, is found at: https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=409661.
House and Senate Democrats Send Letter to Secretary of Education Urging Loan Forgiveness Funds Be Recouped from For-Profit Colleges
On November 6, 2023, House and Senate Democrats sent a letter to Secretary of Education Miguel Cardona asking the Department of Education to recoup funds forgiven through borrower defense to repayment claims from for-profit colleges to pay for the more than $100 million in discharged federal student loan debt. The letter said: “For far too long, predatory for-profit colleges like Ashford and Phoenix have preyed on students, especially veterans, students of color, and low-income students. We therefore urge the Department to aggressively recoup funds from these institutions. This would send a strong warning signal to other predatory for-profit colleges that there are substantial financial consequences for defrauding students.”
The letter advocated for stronger enforcement measures to protect student borrowers, including streamlining borrower defense applications for other former Ashford and Phoenix students and scrutinizing whether these schools remain eligible for federal student aid.
A copy of the letter is found at: https://www.durbin.senate.gov/newsroom/press-releases/durbin-delauro-send-letter-urging-department-of-education-to-recoup-funds-from-predatory-for-profit-colleges-university-of-phoenix-and-ashford-university.
Foxx Subpoenas Secretary Cardona for Borrower Defense Documents
On October 31, 2023, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) issued a subpoena to Secretary of Education Miguel Cardona for documents related to borrower defense to repayment claims. The letter accompanying the subpoena said that the Committee has made multiple requests to the Department for data on borrower defense activities as part of its oversight responsibilities, but has not received complete responses.
The subpoena directs Secretary Cardona to hand over documents related to how the Administration reached a class-action settlement last year that would provide federal student loan forgiveness to hundreds of thousands of borrowers who attended mostly non-profit schools.
Chairwoman Foxx’s press release includes the following statement:
“This is the first time the Committee has subpoenaed the Education Department, and it is a measure that I do not take lightly. Secretary Cardona sat before the Committee in May and gave us his word that he would assist us in our oversight efforts. At every turn, the Department has thrown up roadblocks to prevent us from getting answers on borrower defense to repayment. Clearly, Secretary Cardona’s word doesn’t mean much. His lack of candor not only blocks the Committee from doing its job, but it also leaves students, borrowers, and institutions in the dark. We intend to get the answers for the American people.”
A copy of the press release, which includes the text of the letter, is found at: https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=409700.
Foxx Issues Statement on Student Loan Errors
On October 30, 2023, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) issued a statement in response to reports of student loan errors:
“For more than three years, the Department has known it would need to return borrowers to repayment. Yet, the Department failed to provide any evidence that it had an actual plan to do so. Congress, servicers, borrowers, and taxpayers have all been left in the dark. But now the Department is suddenly shocked that there were errors?
“Quit scapegoating and get to work.”
A copy of the complete press release is found at: https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=409697.
Foxx Asserts that ED has No Respect for Congressional Authority
On October 24, 2023, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) released a statement on the Department of Education’s issuance of a “tranche of new regulations without extending due deference to Congress’ jurisdiction and oversight authorities.”
“Adopting a ‘go it alone’ strategy to advance the Education Department’s own agenda is not a viable avenue to reform postsecondary education in America – the Department better wise up and realize this. This decision to subvert the constitutional authority vested in Congress is nothing new – it adds to a long line of flawed, and in some cases illegal decision-making that is all too familiar in the Biden administration.”
A copy of the press release is found at: https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=409693.
Gallego Sends Letter to ED Expressing Concern Over Potential Servicing Errors in Restart of Federal Student Loan Repayments
On October 12, 2023, Congressman Ruben Gallego (D-AZ) sent a letter to Secretary of Education Miguel Cardona expressing concern over servicing errors related to the Department of Education’s resumption of federal student loan repayments. Congressman Gallego said that there have been several reports by students and parent borrowers of administrative errors that have led to inaccurate repayment amounts, reports of the Department using outdated servicer information, and reports of borrowers receiving files with missing and incorrect information about important details such as family size, income, and marital status. Congressman Gallego concluded his letter by encouraging the Department to improve repayment implementation to minimize confusion and to ensure the orderly processing of payments.
A copy of the press release, which includes the text of the letter, is found at: https://rubengallego.house.gov/media-center/press-releases/gallego-questions-department-of-education-on-student-loan-repayment-issues.
House Education and the Workforce Committee Chairwoman Foxx Sends Letter to Department of Education Warning about Student Loan Scams
On October 12, 2023, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) sent a letter to Secretary of Education Miguel Cardona urging the Department of Education to make sure borrowers do not get taken advantage of as repayment of federal student loans begins. Chairman Foxx argued that the federal student loan system is complicated for families to navigate, which would make them vulnerable to companies running student loan scams.
A copy of the press release, including the text of the letter, is found at: https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=409664.
ED Announces Framework for Student Loan Servicer Accountability to Protect Students
On November 9, 2023, the Department of Education announced that it was taking steps to hold student loan servicers accountable for meeting their obligations to students, borrowers, and taxpayers when managing student loans. The announcement outlined a framework for how it will improve student loan servicer accountability. Secretary of Education Miguel Cardona said: “The Biden-Harris Administration has made clear that we will not allow borrowers to pay the price for unacceptable servicing failures.”
The Department is employing the following strategies to strengthen servicer oversight and monitoring:
- Direct servicer monitoring: FSA will monitor the quality of customer service provided by loan servicers.
- Partnering with federal and state regulators: The Department will cooperate with other government agencies and state attorneys general.
- Leveraging borrower complaints: This includes complaints filed through FSA’s Office of the Ombudsman, which works closely with the oversight team to determine if complaints are part of a larger servicer issue.
The Administration will continue to use the following tools to protect borrowers from poor servicer conduct:
- Withholding Payment: The Department may withhold payments when servicers do not meet their contractual obligations.
- Suspending or Re-allocating Borrowers: If servicers show they are unable to perform their duties for the borrowers they manage, the Department can suspend the allocation of additional borrowers, or re-allocate borrowers to other servicers.
- Contractor Performance Reports (CPARS): Summary reports are created by ED for each servicer that use the government grading system. Poor CPARS scores could result in a loss of future revenue.
- Corrective Action Plan (CAP): The Department requires servicers to fix servicing errors through remediation plans.
The announcement stated that the Department will enhance its ability to reward servicers for positive results and hold servicers accountable for poor performance through the transition to the Unified Servicing and Data Solution (USDS). USDS will allow the Department to create a loan servicing environment that better serves borrowers and increase oversight ability for more than 38 million borrowers with federally managed student loans.
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-announces-framework-student-loan-servicer-accountability-protect-borrowers-nationwide.
OUS and FSA Disclose Borrower Defense School Notification Process Under the 2016 Regulation
On November 8, 2023, the Office of the Under Secretary (OUS) and Federal Student Aid (FSA) released an Electronic Announcement (GEN-23-96) explaining the notification and adjudication process under the 2016 borrower defense regulation. As part of the settlement reached in the Sweet v. Cardona litigation, the Department of Education is sending schools notices of borrower defense applications received from June 23, 2022 to November 15, 2022. The Sweet v. Cardona settlement requires ED to adjudicate these applications under the 2016 regulation. The 2016 regulation requires ED to notify schools of all applications before they are substantively reviewed. Schools have the option to respond to the notices 60 days from the date the school receives the notification, and there is no negative inference against a school if it does not respond. A nonresponse does not create an inference in favor of the borrower.
After the notice period ends and the fact-finding process is complete, ED will adjudicate the application(s) on the merits. The 2016 regulation provides for approvals based on substantial misrepresentation; a nondefault, favorable contested judgment; or breach of contract. Substantial misrepresentations are the most common types of alleged misconduct.
If a discharge is approved, ED will at a separate date determine whether to engage in a separate proceeding to recoup borrower defense costs from the schools. Schools will have the opportunity to contest any recoupment action before a hearing officer if they choose to do so. During that process, ED will send a second notification to the school with the application form for all loans for which recoupment is requested, all attachments submitted by the borrower, and the rationale for ED’s decision to discharge.
A copy of the Electronic Announcement is found at: Borrower Defense School Notification Process Under the 2016 Regulation (34 C.F.R. 685.222) | Knowledge Center.
ED Announces Almost 5.5 Million Borrowers are Enrolled in the SAVE Plan
On November 8, 2023, the Department of Education announced that nearly 5.5 million borrowers are now enrolled in the Saving on A Valuable Education (SAVE) Plan, including 2.9 million who have $0 payments. All other borrowers enrolled in SAVE are saving an estimated $102 a month compared to what they would have paid on the Revised Pay As You Earn (REPAYE) Plan. The data are based on enrollment as of October 15, 2023.
Secretary of Education Miguel Cardona said: “Under President Biden, the Department created the SAVE Plan so that young people and working families can climb the economic ladder without unaffordable student loan debt weighing them down.”
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-announces-nearly-55-million-borrowers-are-enrolled-save-plan.
ED Reminds Educational Institutions of Their Legal Obligation to Address Discrimination
On November 7, 2023, the Department of Education’s Office of Civil Rights (OCR) released a Dear Colleague letter reminding schools of their legal obligations under Title VI of the Civil Rights Act of 1964 to provide all students a school environment free from discrimination based on race, color, or national origin. “The rise of reports of hate incidents on our college campuses in the wake of the Israel-Hamas conflict is deeply traumatic for students and should be alarming to all Americans. Antisemitism, Islamophobia, and all other forms of hatred go against everything we stand for as a country.” The Dear Colleague letter includes additional resources and an updated complaint form, which will help individuals understand how to file a Title VI complaint.
A copy of the press release, which includes the Dear Colleague letter, is found at: https://www.ed.gov/news/press-releases/us-department-education-reminds-schools-their-legal-obligation-address-discrimination-including-harassment.
OPE Seeks Input on Accrediting Agencies Currently Under Review
On November 6, 2023, the Accreditation Group, Office of Postsecondary Education, Department of Education published a Notice in the Federal Register calling for written comments for accrediting agencies currently undergoing review for the purpose of recognition by the Secretary of Education. The agencies under review include the Southern Association of Colleges and Schools, Commission on Colleges (SACS).
A copy of the Notice is found at: https://www.federalregister.gov/documents/2023/11/06/2023-24434/accrediting-agencies.
FSA Fines Grand Canyon University $37.7 Million for “Deceiving Thousands of Students”
On October 31, 2023, Federal Student Aid (FSA) announced a $37.7 million fine against Grand Canyon University. An FSA investigation found Grand Canyon University (GCU) “lied” to more than 7,500 former and current students about the cost of its doctoral programs over several years. The University “falsely advertised a lower cost than what 98 percent of students ended up paying” to complete certain doctoral programs.
The press release stated that Grand Canyon University advised students that certain doctoral programs cost between $40,000 and $49,000, but the statements made on the school’s website were false and misleading because less than 2 percent of graduates completed their program within the cost that the University advertised. In fact, graduates of these programs paid $10,000 to $12,000 more in tuition costs.
FSA added five conditions to Grand Canyon University’s Provisional Program Participation Agreement (PPPA):
- Condition A: GCU shall not make substantial misrepresentations related to the cost of obtaining a degree in its doctoral programs.
- Condition B: GCU must engage a monitor to oversee its compliance with Condition A.
- Condition C: GCU must report quarterly to the Department about investigations, actions, or other legal proceedings by its accrediting agency or any government agency and must report pending litigation in which a plaintiff seeks class certification.
- Condition D: GCU must send a notice to all currently enrolled doctoral students informing them how to use the Department’s feedback center to submit a complaint to the Department.
- Condition E: GCU must send a notice to all current employees who provide recruiting, admissions, and other services to doctoral students about how to use the FSA Tips line to submit information about misconduct or violations.
A copy of the press release is found at: https://www.ed.gov/news/press-releases/us-department-education-office-federal-student-aid-fines-grand-canyon-university-377-million-deceiving-thousands-students.
ED Issues Proposed Regulatory Language for Negotiated Rulemaking on Federal Student Loan Forgiveness
On October 30, 2023, the Department of Education released proposed regulatory language and an issue paper pertaining to borrowers facing hardship in anticipation of the second round of meetings of the negotiated rulemaking committee, which occurred on November 6 and 7, 2023.
Secretary of Education Miguel Cardona said: “President Biden and I are committed to helping borrowers who’ve been failed by our country’s broken and unaffordable student loan system. These draft proposals would build on the historic $127 billion in loan forgiveness the Biden-Harris Administration has already approved for nearly 3.6 million borrowers. We are fighting to ensure that student debt does not stand in the way of opportunity or prevent borrowers from realizing the benefits of their higher education.”
The regulatory language outlines several circumstances that the Department is proposing to forgive student loan debt consistent with the five categories released during the first negotiated rulemaking session that took place in October. The proposed language would provide forgiveness to borrowers with loans made under the Federal Family Education Loan Program, the Federal Direct Loan Program, the Federal Perkins Loan Program, and the Health Education Assistance Loan Program, and includes the following circumstances:
- When the balance of a loan exceeds the original principal balance.
- When a loan first entered repayment 25 years ago.
- When a borrower is not enrolled in a repayment plan that provides forgiveness or is eligible for Public Service Loan Forgiveness, Borrower Defense to Repayment, Closed School Discharge, or other discharge programs, and the Secretary has deemed the borrower to meet the eligibility requirements for forgiveness or discharge.
- When a borrower was enrolled in a program that failed the debt-to-earnings or earnings premium test under the recently issued regulations on gainful employment.
- When a borrower attended an institution of higher education that lost its eligibility due to a failing cohort default rate and the borrower was included in the cohort that was deemed failing.
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-continues-efforts-provide-debt-relief-more-student-loan-borrowers?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=.
A copy of the text of the student options is found at:
A copy of the issue paper is found at:
ED Withholds Payment to Student Loan Servicer as Part of Accountability Measures for Harmed Borrowers
On October 30, 2023, the Department of Education announced that it found that a loan servicer, MOHELA, failed to send billing statements on time to 2.5 million borrowers. As a result, over 800,000 borrowers are delinquent on their loans. In response to identifying this error, the Department is withholding $7.2 million in payment to MOHELA for October, and has directed MOHELA to place all affected borrowers in forbearance until the issue is resolved. Any months these borrowers are in forbearance will count as credit towards loan forgiveness through Public Service Loan Forgiveness and Income Driven Repayment plans.
Secretary of Education Miguel Cardona said: “The Biden-Harris Administration is looking out for borrowers at every step throughout their return to repayment. Our oversight efforts have uncovered errors from loan servicers that will not be tolerated. We took immediate actions to protect borrowers from the fallout of this error and hold the responsible servicers accountable, including by withholding $7.2 million in payment from one servicer.”
A copy of the press release is found at: https://www.ed.gov/news/press-releases/us-department-education-announces-withholding-payment-student-loan-servicer-part-accountability-measures-harmed-borrowers.
FSA’s Office of Enforcement Announces New Public Reporting of Agency-Issued Suspensions and Debarments
On October 25, 2023, Federal Student Aid’s (FSA) Office of Enforcement issued an FSA Enforcement Bulletin, announcing the regular public reporting on its website of a list of individuals who are currently suspended or debarred by the Department of Education. The list will be regularly updated by adding and removing names to reflect new debarments or suspensions and the expiration of such actions. Suspensions and debarments are actions taken by the Department and other federal agencies to “exclude from Federal programs persons who are not presently responsible.”
A copy of the FSA Enforcement Bulletin, October 2023 is found at:
ED Announces Release of Final Rules that Strengthen Accountability for Colleges and Consumer Protection for Students
On October 24, 2023, the Department of Education announced the release of final rules that strengthen accountability for colleges and consumer protection for students and go into effect on July 1, 2024. The rules are the remaining accountability topics considered during the Institutional and Programmatic Eligibility Committee in early 2022, which cover the following four areas:
- Financial responsibility, which relates to situations where the Department can move swiftly to obtain financial protection, like a letter of credit, when a college exhibits warning signs;
- Administrative capability, which lays out additional areas where institutions must show they have sufficient resources and procedures in place for areas like career services and financial aid communication to participate in the Federal student aid programs;
- Certification procedures, which address the conditions the Department can place in the written agreements it has with colleges to participate in Federal student aid programs; and
- Ability-to-benefit, which lays out a process for States to approve postsecondary programs that serve students who do not have a high school diploma.
Secretary of Education Miguel Cardona said: “With these final rules the Biden-Harris Administration is fixing a broken system, which failed to protect students and families, and addresses abuses in higher education that have cost taxpayers billions of dollars in recent years. We are raising the bar for accountability and making sure that when students invest in higher education, they get a solid return on that investment and a greater shot at the American dream.”
A copy of the press release, which includes the draft rules that will be published in the Federal Register on October 31, 2023, and a Fact Sheet, is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-releases-final-rules-strengthen-accountability-colleges-and-consumer-protection-students.
ED Publishes a Notice in the Federal Register Announcing Early Implementation of Final Rule Related to Income-Driven Repayment
On October 23, 2023, the Department of Education published a Notice in the Federal Register announcing the early implementation of a certain provision of the final rule related to income-driven repayment. On July 10, 2023, the Department published in the Federal Register a final rule amending regulations related to income-driven repayment. In the final rule, ED designated certain provisions for early implementation. The Secretary is exercising his authority under section 482(c) of the Higher Education Act to designate an additional regulatory change made in that final rule for early implementation.
The Secretary is designating for early implementation the change to the process for a borrower re-enrolling in the Revised Pay As You Earn (REPAYE) repayment plan, which is now also known as the Saving on A Valuable Education (SAVE) repayment plan, after previously being enrolled in a different plan. Under the current rule, a borrower returning to REPAYE must provide documentation of income for the years in which the borrower was not on REPAYE. Section 685.209(e) of the final rule, which will become effective on July 1, 2024, employs a simpler process that does not require documentation of prior years’ income information. On October 23, 2023, the Department will implement Section 685.209(e), to the extent it eliminates the requirement for borrowers returning to the SAVE plan after having previously been on the REPAYE repayment plan to provide prior years’ income. The Secretary is designating only the removal of this requirement for early implementation, rather than all of Section 685.209(e).
While documentation of income for years in which a borrower was not enrolled in REPAYE is no longer required, a borrower will still need to provide documentation of their income information to allow the Department to calculate the borrower’s current monthly payment amount under the SAVE plan.
A copy of the Notice is found at: https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2023-10-23/improving-income-driven-repayment-william-d-ford-federal-direct-loan-program-and-federal-family-education-loan-ffel-program.
FSA Partner Connect Implementation Plans for December 2023; E-App and Other Actions Required by November 24, 2023
On October 20, 2023, Federal Student Aid (FSA) issued an Electronic Announcement (GEN-23-86) describing the implementation plans for December 17, 2023, which includes an extensive redesign of the E-App, and other actions required by November 24, 2023. A new version of the E-App will be available in FSA Partner Connect for partners to submit applications for school eligibility, recertifications of school eligibility, and other program participation changes. Partner Connect also will provide access to an automated pre-eligibility application for new applicants and schools seeking reinstatement.
The updated E-App will improve the supporting documentation and signature processes. Supporting documentation, such as the Accrediting Letter and State License/Legal Authorization Letter, will be uploaded within the applicable E-App section, which will eliminate the need to mail or use a separate system to provide supporting documentation. The updated E-App will utilize DocuSign’s digital signature process to collect the required signatures via email notification and eliminate the need to print and mail the signature page. If an authorized signature authority is unavailable, a delegated signature authority will be able to sign the E-App.
To implement the new E-App in FSA Partner Connect in December 2023, ED will cease using the existing E-App in the elig.cert.ed.gov system on November 24, 2023. Institutions are encouraged to download or print the following items to save for their records and to have available to re-enter data in the new online system, if needed:
- Current ECAR.
- Any acknowledgment and approved notices that the school does not have saved.
- The institution’s Application data with regard to Section D, ownership, if applicable.
- The institution’s Application data but that have not been processed as yet.
Additional guidance is provided on the process for changes in ownership for reporting that must occur after November 24, 2023, and on or before December 18, 2023.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2023-10-20/fsa-partner-connect-implementation-planned-december-2023-e-app-and-other-actions-required-nov-24-2023.
ED Issues DCL to Guarantors and Institutions on Bankruptcy Proceedings
On October 19, 2023, the Department of Education issued a Dear Colleague Letter (GEN-23-13) providing guidance to guaranty agencies and institutions of higher education participating in the Federal Family Education Loan Program (FFELP) and Federal Perkins Loan Program as they continue to implement federal regulations that govern their actions in defending bankruptcy proceedings. The letter clarifies that in determining whether repayment of the federal student loan would impose an undue hardship on a borrowers, the loan holders may fulfill their regulatory requirements by using the process outlined in the November 17, 2022, Department of Justice Guidance to United States Attorneys.
The Department said that consistent with that guidance, the letter seeks to promote three goals:
- To set clear, transparent, and consistent expectations for discharge that borrowers understand regardless of whether they are represented by counsel.
- To reduce borrowers’ burdens in pursuing an adversary proceeding by simplifying the fact-gathering process. This includes use of an Attestation and, where feasible, information provided through prior submissions to the bankruptcy court and available student loan servicing records.
- Where the facts support it, to increase the number of cases where the holder stipulates to the facts demonstrating a debt would impose undue hardship and recommends to the court that a borrower’s student loans be discharged.
A copy of the Dear Colleague Letter, which provides a link to the November 17, 2022 guidance, is found at: https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2023-10-19/undue-hardship-discharge-title-iv-loans-bankruptcy-adversary-proceedings#.
FTC Bans Two Third-Party Debt Relief Companies
On October 6, 2023, the Federal Trade Commisssion (FTC) announced it permanently banned two groups of third-party debt relief companies from the industry and orders them to surrender their assets as part of a settlement. The defendants, SL Finance LLC and BSO Consulting Services Inc., posed as affiliates of the Department of Education, charged illegal fees, and deceived students with false promises of loan forgiveness and repayment programs that did not exist. Their actions resulted in the loss of millions of dollars for students.
A copy of the announcement is found at:
CFPB Announces Investigation of PHEAA Over Student Loan Bankruptcy Discharges
On September 19, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it is investigating whether the Pennsylvania Higher Education Assistance Agency (PHEAA) illegally tried to collect on private education loans that were already discharged by bankruptcy courts. CFPB’s press release indicated that PHEAA argued that the CFPB lacks the authority to enforce federal bankruptcy law and that its guidance to servicers was based on “dubious” and “novel interpretations” of the law.
A copy of the CFPB press release is found at: https://protectborrowers.org/cfpb-rejects-effort-by-disgraced-student-loan-company-to-rob-borrowers-of-bankruptcy-rights/.