SR23

A Senate Resolution urging Congress to ensure the continued relationship between the Consumer Financial Protection Bureau and the United States Department of Education to protect student borrowers.

Whereas, The Consumer Financial Protection Bureau (bureau) was established in 2010 by federal law pursuant to Title X of the “Dodd-Frank Wall Street Reform and Consumer Protection Act” to “implement and, where applicable, enforce Federal consumer financial law”; and

Whereas, The bureau holds the authority to issue rules and guidance, and to take appropriate enforcement actions to address violations of federal consumer financial law; and

Whereas, The bureau’s student loan ombudsman was directed by law to enter into a memorandum of understanding with the federal Department of Education’s student loan ombudsman to “ensure coordination in providing assistance to and serving borrowers seeking to resolve complaints related to their private education or Federal student loans”; and

Whereas, The bureau has handled nearly 20,000 complaints on federal student loan servicing, including more than 1,200 from servicemembers, veterans, and their families; and

Whereas, The Department of Education, prior to September of 2017, never expressed any concerns about the bureau’s handling of federal student loan complaints; and

Whereas, The bureau has upheld its mandate from Congress and has worked faithfully in compliance with the department’s directives in its mission to protect student borrowers; and

Whereas, Secretary of Education Betsy DeVos issued a letter to the bureau on September 1, 2017, rebuking the bureau for what she perceived to be overreaching and expanding its jurisdiction. Secretary DeVos also notified the bureau that she is ending the agreements between her department and the bureau to share information necessary for oversight of private actors involved in federal aid programs, among them student loan servicers, the private entities that manage and collect payments on federal student loans; and

Whereas, By severing the formal relationship between the bureau and her department, Secretary DeVos is taking aggressive and reckless action to dismantle vital protections for student borrowers; now, therefore,

Be It Resolved by the Senate of the State of New Jersey:

1. The Senate of the State of New Jersey respectfully urges the Congress of the United States to take such action as may be necessary to ensure the continued relationship between the Consumer Financial Protection Bureau and the United States Department of Education in the joint effort to protect student borrowers.

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the United States Secretary of Education, the Director of the Consumer Financial Protection Bureau, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.

STATEMENT

This Senate resolution respectfully urges the Congress of the United States to take such action as may be necessary to ensure the continued relationship between the Consumer Financial Protection Bureau and the United States Department of Education in the joint effort to protect student borrowers.

The Consumer Financial Protection Bureau (bureau) was established in 2010 by federal law pursuant to Title X of the “Dodd-Frank Wall Street Reform and Consumer Protection Act” to “implement and, where applicable, enforce Federal consumer financial law.” Secretary of Education Betsy DeVos issued a letter to the bureau on September 1, 2017, rebuking the bureau for what she perceived to be overreaching and expanding its jurisdiction. Furthermore, Secretary DeVos notified the bureau that she is ending the agreements between her department and the bureau to share information necessary for oversight of private actors involved in federal aid programs, among them student loan servicers, the private entities that manage and collect payments on federal student loans. By severing the formal relationship between the bureau and her department, Secretary DeVos is taking aggressive and reckless action to dismantle vital protections for student borrowers.