Student Defense: Cordray’s Appointment Signals Strong Approach Towards Consumer Protection, Enforcement Against Bad Actors
FOR IMMEDIATE RELEASE:
May 3, 2021
MEDIA CONTACT:
press@defendstudents.org | 202-734-7495
Student Defense: Cordray’s Appointment Signals Strong Approach Towards Consumer Protection, Enforcement Against Bad Actors
WASHINGTON, DC – Today, Student Defense President Aaron Ament released the following statement regarding Richard Cordray’s appointment to lead the Office of Federal Student Aid.
“Student Defense is proud to support Richard Cordray’s appointment to lead the Office of Federal Student Aid (FSA). FSA’s core functions of student and consumer protections, fiscal oversight and enforcement took a back seat under the previous administration, leaving countless students at the mercy of predatory for-profit colleges and costing taxpayers millions of dollars. Cordray’s appointment — and his track record as a fierce consumer protections watchdog — sends an unmistakable message that the Biden Administration is committed to bolstering accountability and ramping up enforcement against bad actors.
“As part of our 100 Day Docket, Student Defense has compiled a number of steps the Administration can take, without needing legislation, to increase oversight and shift the FSA’s mission back to protecting students instead of doing favors to benefit for-profit institutions. We hope the administration will build on this important announcement by pursuing those recommendations and reconstituting the enforcement unit. FSA can take swift action to restore critical protections to safeguard students’ financial security.”
The 100 Day Docket outlines clear steps the FSA can take to restore borrower protections and increase desperately needed oversight. Student Defense has developed a roadmap — supported by Senator Elizabeth Warren — that would jumpstart use of existing enforcement avenues to hold for-profit college executives personally liable for losses incurred by borrowers and the Department of Education. The Docket also includes recommendations on structural changes that FSA can make to improve enforcement and protection capabilities (released in late 2020 as part of a symposium and paper with Democracy Journal). Student Defense also partnered with Rep. Katie Porter to release a report highlighting underused authorities already available to the Department under the Higher Education Act.
The full 100 Day Docket can be found at www.100daydocket.org.